Afrisetup’s Tanzania Employer of Record services are built on a foundation of professionalism and reliability. We understand that accuracy, compliance, and efficiency are critical when managing your HR functions. Our dedicated team of HR experts possesses extensive knowledge of Tanzanian labor laws and regulations, enabling us to handle even the most complex employment processes with ease and efficiency.
Want to learn how to hire and manage employees in Tanzania with ease? From understanding hiring requirements and onboarding to handling benefits and terminations, we’ve got you covered every step of the way. Click the video to see how our Employer of Record services in Tanzania work!
Employment Law in Tanzania
In Tanzania, employment is regulated by the Employment and Labor Relations Act, which sets the legal framework for labor relations, contracts, working conditions, and employee rights. The workforce comprises both skilled and unskilled labor, with sectors like agriculture employing a significant portion of the population.
Foreign companies looking to hire employees in Tanzania must comply with local employment laws, which cover minimum wages, working hours, termination procedures, and statutory benefits. An employer of record Tanzania can help companies ensure compliance with these regulations while managing payroll, benefits, and HR functions on behalf of the employer.
The most important aspects of Tanzania labor law that employers and workers should be aware of have been outlined below:
1. Minimum Wage in Tanzania
In Tanzania, minimum wages are legally set by government regulation and vary by sector and job category. Under the Labour Institutions (Minimum Wage for Private Sector) Order, 2025 (GN 605A), effective 1 January 2026, private-sector monthly minimum wages range from about TZS 80,000 for certain domestic workers to over TZS 760,000 in sectors such as energy and finance. The law uses sector-specific wage schedules, not a single nationwide rate.
Mandatory Employee Benefits in Tanzania:
2. Working Hours, Overtime, and Public Holidays in Tanzania
Working Hours in Tanzania
Tanzania’s regular workweek is 45 hours long, spread over six days, with up to 9 hours daily.
Employers can establish working hours depending on operational demands, but they must stay within the legal limits. Working beyond these hours is considered overtime.
Each working day must also include an unpaid lunch break lasting at least one hour after five hours of work. While the law stipulates up to six work days per week, the seventh day must be designated for rest.
Overtime in Tanzania
Overtime work must be mutually agreed upon and may not exceed 12 hours in a single day or 50 hours in 4 weeks. Overtime compensation is calculated at 150% of the employee’s usual rate. For hours worked on public holidays, the rate rises to 200%.
Employees working at night are entitled to an additional 5% of their hourly base wage. This does not, however, apply to professions such as security guards or shift workers unless stated explicitly by legislation.
Paid Public Holidays
Public holidays in Tanzania total seventeen and include seven religious observances, three national commemorations, two death anniversaries of the founding leaders of the country’s constituent states, and five holidays of historical or cultural significance.
Employees who work on a public holiday are legally entitled to double pay, equivalent to 200% of their normal wage.
Below is a list of public holidays recognized in Tanzania:
1. New Year’s Day — January 1
2. Zanzibar Revolution Day — January 12
3. Eid al Fitr — March 20
4. Eid al Fitr Holiday — March 21
5. Good Friday — April 3
6. Easter Monday — April 6
7. Karume Day — April 7
8. Union Day — April 26
9. International Workers’ Day — May 1
10. Eid al Adha — May 27
11. Saba Saba Day — July 7
12. Nane Nane Day — August 8
13. The Prophet’s Birthday (Maulid) — August 26
14. Mwalimu Nyerere Day — October 14
15. Independence Day — December 9
16. Christmas Day — December 25
17. Boxing Day — December 26
Note: The dates for Islamic holidays — Eid al Fitr, Eid al Adha, and Maulid — may change depending on the sighting of the moon.
3. Leave Days in Tanzania
• Maternity Leave in Tanzania
Female employees are entitled to 84 days of paid maternity leave, which can be extended to 100 days in the event of multiple births. Unless medically proven fit, they must inform their employer at least three months before delivery and are not permitted to work for at least six weeks after birth.
• Paternity Leave in Tanzania
Fathers are entitled to three days of paid leave within seven days after childbirth.
• Sick leave in Tanzania
Employees are entitled to 126 days of paid sick leave per year, with full pay for the first 63 days and half pay for the remaining period. A medical certificate is usually needed to back up sick leave claims.
• Annual Leave in Tanzania
Employees are entitled to at least 28 days of paid leave per year.
• Bereavement Leave
Employees have a right to at least four days of paid leave following the death of a spouse, parent, grandparent, child, or sibling.
4. Statutory Deductions in Tanzania
Tanzania’s fiscal year runs from July 1 to June 30. Depending on company policy, employers may run payroll daily, weekly, bimonthly, or monthly, although monthly payments are the most common.
Tanzania’s payroll structures include gross and net salaries, allowances, benefits, and bonuses.
Employers must make timely deductions and remit the correct amounts to government authorities, and issue payslips. The following are the fundamental statutory deductions that Tanzanian employers must observe:
a.Income Tax in Tanzania
Employees residing in Tanzania, except short-term residents, are subject to personal income
tax on their entire income. The tax structure ranges from 0% to 30%, depending on your monthly
income.
Non-resident employees are taxed at a fixed rate of 15% on their employment income, which is
the final tax in Tanzania. Presumptive tax rates apply to small business owners with an annual
turnover of less than TZS100 million. The following table illustrates the Tanzania tax rates that apply
based on personal monthly income:
| Monthly Taxable Income (TZS) | Base Tax (TZS) | Tax on Excess (%) |
| 0 – 270,000 | 0 | 0% |
| 270,001 – 520,000 | 0 | 8% |
| 520,001 – 760,000 | 20,000 | 20% |
| 760,001 – 1,000,000 | 68,000 | 25% |
| 1,000,001 and above | 128,000 | 30% |
Employers must withhold and remit PAYE monthly to the Tanzania Revenue Authority (TRA) by the 15th of the following month.
b. The National Social Security Fund (NSSF)
Employers and workers each contribute 10% of their gross monthly salary to the National Social Security Fund (NSSF), for a total of 20%.
c. Workers’ Compensation Fund (WCF)
Employers must pay the WCF, which covers work-related injuries and deaths, 0.5% of each employee’s gross monthly salary.
d. Skill Development Levy (SDL)
Employers with ten or more employees must pay a 3.5% levy on all employees’ total gross monthly earnings. This fund encourages vocational training and skill development.
e. Health insurance
The employer and the employee split an essential 6% health insurance cost of three percent each. This covers medical guidance, hospitalization, prescription drugs, and inpatient and outpatient treatment. Employers should provide extra private health insurance to ensure overall employee well-being.
f. Additional Benefits
Employers must declare all employee allowances and perks, which usually incur taxes depending on their type and value. Common allowances include:
- Entertainment
- Transport and meal allowances
- Housing subsidies
- Internet and mobile data subsidy
g. Year-End Bonuses
Bonuses, which are often included in the full compensation package, are common but not legally compulsory; when offered, they should be reflected in the employee’s overall compensation package.
Contact us today for a Free statutory deduction simulation
5. Contract of Employment in Tanzania
A legitimate employment contract in Tanzania is essential for defining the rights and
responsibilities of both employers and employees. According to Section 14 of the Employment
and Labor Relations Act (ELRA), there are three main types of employment contracts in
Tanzania:
1. Unspecified Period (Permanent Contract) – This open-ended contract has a start date but no
end date. It can be terminated due to retirement, retrenchment, misconduct, or mutual agreement.
2. Specified Period –This contract applies primarily to professionals or managerial employees
and has a clearly defined start and end date. Regulation 11 (GN 47/2017) requires that such
contracts be issued for a minimum term of at least 12 months.
3. Specific Task – This contract is created for a specific project or assignment and terminates
upon completion of the task. It is ideal for seasonal or short-term roles rather than ongoing
positions.
Under Tanzanian law, employers are required to issue either a formal employment contract or a
written statement of particulars. The contract must be presented in a language the employee
understands—usually English or Swahili—and all terms should be clearly explained to ensure
full understanding.
Essential Elements of an Employment Contracts in Tanzania
Key components of a Tanzanian employment contract include:
• Employee’s full name, age, gender, and permanent address
• Place of employment and workplace location
• Job title and description
• Contract start date, type, and duration
• Working hours and days
• Salary, benefits, deductions, and any other form of compensation
• Other relevant employment details
Written contracts are highly recommended to reduce legal risks, promote transparency, and
ensure compliance with Tanzania’s labor laws. They protect both parties and provide clarity in
case of disputes.
Disclosure and Confidentiality of Personal Information
An employer has the right to withhold certain information under specific circumstances, including when:
• The information is legally privileged.
• The information concerns an employee’s private matters and the employee has not consented to its disclosure.
• Disclosure would breach any existing law or court order.
• The information is confidential, and revealing it could cause significant harm to either the employer or the employee.
6. Probation Period in Tanzania
While Tanzanian labor laws do not require a probationary term, many businesses include one in
their human resources policies. Importantly, employees who are terminated within the first six
months cannot sue for unfair dismissal, giving employers a more flexible probationary period.
Employers are urged to establish probation terms clearly in employment contracts.
7. Termination of Employment in Tanzania
Termination must be conveyed in writing and for valid grounds, such as misconduct (e.g., theft, absenteeism, or insubordination), poor performance despite proper training and warnings, or illness that permanently impairs the employee’s capacity to perform. Other reasons include: incompatibility owing to behavioral difficulties and operational requirements, such as restructuring or economic downturns that render the function unnecessary. Employment may also end due to mutual agreement, exceptional events (e.g., death or business closure), or employee resignation.
The following categories of employees in Tanzania are protected from termination:
1. Employees who are pregnant or on maternity leave
2. Employees who are members of a trade union or are engaged in lawful union activities
3. Employees who report misconduct, corruption, or unethical behavior by their employer or others
4. Employees who are absent due to illness or injury (for a period not exceeding 36 months in total)
5. Employees with disabilities, unless they are unable to perform their duties even with reasonable adjustments
Employers who terminate workers in these protected groups without valid justification or due
process may face legal consequences.
Notice Period in Tanzania
Under Tanzanian employment law, the notice period depends on the employee’s position and payment schedule:
• Executives: A minimum of seven (7) days’ notice is required during the first month of employment.
• Employees on daily or weekly contracts: A four (4) day notice period applies.
• Employees paid monthly: A twenty-eight (28) day notice period is required.
Employers may also choose to pay employees in lieu of notice, allowing for immediate termination while still meeting legal requirements.
Severance Pay in Tanzania
An employee must have completed at least 12 months of continuous service with an employer to
qualify for severance pay. The payment is capped at ten (10) years of service and is calculated at
the rate of seven days’ salary for every completed year of employment.
However, severance pay in Tanzania is not applicable if an employee is dismissed for reasons such as misconduct, incapacity, or incompatibility with the employer’s operational needs. It also does not apply if the employee declines a reasonable offer of alternative employment from the same or another employer.
Importantly, severance pay is separate from other terminal benefits, meaning employees remain entitled to any other lawful dues upon termination.
8. Expats, Visas, and Work Permits in Tanzania
Foreign nationals who wish to work in Tanzania must obtain both a work permit and a residence permit. The specific visa type issued depends on the applicant’s country of origin, the purpose of the stay, and the duration of the visit.
Types of Visas in Tanzania
1. Ordinary Visa: Issued for short visits such as tourism, family visits, meetings, or events. It does not permit employment or business activity.
2. Business Visa: Designed for temporary business-related activities, including brief professional assignments or commercial engagements that do not involve long-term work.
3. Multiple Entry Visa: Allows multiple entries into Tanzania within a set period and is commonly used by frequent visitors, such as company directors, consultants, and certain foreign nationals.
4. Transit Visa: Granted to travelers passing through Tanzania en route to another country. It is limited strictly to transit purposes.
5. Gratis Visa: Provided to holders of diplomatic or official passports and individuals traveling on official or government-related assignments.
6. Student Visa: Issued to foreign nationals entering Tanzania for academic purposes, including studies, research, internships, or exchange programs.
Types of Residence and Work Permits in Tanzania
Tanzania issues three main categories of work and residence permits based on the purpose of stay and type of activity:
Class A Permit – Issued to foreign investors and self-employed individuals engaged in business activities in Tanzania.
Class B Permit – Granted to expatriates employed by companies or private institutions, typically for roles requiring skills or expertise not readily available in the local labor market.
Class C Permit – Issued to non-commercial applicants such as missionaries, volunteers, researchers, students, and other similar categories.
Approval of a Tanzania work permit depends on factors including the nature of the role, the employer, and the applicant’s qualifications. Our Tanzania Employer of Record (EOR) helps companies manage expatriate employment while ensuring compliance with local labor and immigration laws. In most cases, foreign employees working in Tanzania require a Class B permit to work in Tanzania legally.
Work Permit Validity and Processing Time
Work permits and residence permits in Tanzania are generally issued for up to two years and may be renewed, depending on the employment contract, professional licensing, and permit compliance. Processing typically takes around two months from the date of application.
9. Trade Unions
Employees have the right to join trade unions, and businesses must comply with collective bargaining agreements.
When to Use a Tanzania Employer of Record
Using a Tanzania EOR is ideal for businesses expanding or operating internationally. Key scenarios include:
1. Global Expansion – Establish a local workforce quickly without creating a legal entity.
2. Compliance Management – Navigate Tanzanian labor laws, tax rules, and statutory obligations.
3. Cost Efficiency – Avoid the time and expense of setting up a local entity.
4. Risk Mitigation – The EOR assumes legal responsibility for employment, payroll, and taxes.
5. Flexibility – Ideal for temporary or project-based operations.
6. Quick Market Entry – Start operations and hire staff immediately.
7. Cultural & Language Support – Access local expertise to ensure smooth communication and business practices.
Requirements for Using EOR Services in Tanzania
To work with an employer of record Tanzania, companies should prepare:
1. Business Information – Company name, legal documentation, and nature of operations.
2. Employee Details – Roles, job descriptions, salaries, and employment terms.
3. Compliance Information – Industry-specific regulations or legal obligations.
4. Payroll Data – Salary structures, benefits, and deductions.
5. Contracts & Policies – Employment contracts and company policies aligned with Tanzanian labor laws.
Benefits of Outsourcing Tanzania EOR Services
Partnering with a Tanzania EOR provides:
1. Local Expertise – Navigate Tanzanian labor regulations and employment practices efficiently.
2. Legal Risk Reduction – Ensure compliance and avoid penalties or disputes.
3. Flexibility & Scalability – Adjust your workforce quickly to meet changing business needs.
4. Time and Cost Savings – Outsource payroll, HR, and compliance functions to reduce overhead.
5. Focus on Core Business – Free your team to concentrate on strategic growth while the EOR handles employment administration.
Tanzania Employer of Record FAQs
A Tanzania EOR hires and manages employees on your behalf, handling payroll, taxes, HR, and compliance. You control day-to-day operations while the EOR ensures legal compliance with Tanzanian labor laws. This allows your business to operate in Tanzania without setting up a local entity, simplifying expansion and reducing administrative and legal risks.
An Employer hires and manages its own employees. An employer of record is a different company that does the hiring and managing for another company.
An employment policy in Tanzania defines rules for hiring, wages, benefits, working conditions, and termination. It ensures compliance with the Employment and Labour Relations Act and provides clarity for both employers and employees, reducing disputes and promoting fair workplace practices.
Tanzania’s recruitment policy ensures fair and transparent hiring. It promotes equal opportunity, reduces discrimination, and encourages inclusivity for vulnerable groups. Employers follow this framework to hire ethically while meeting local labor standards.
Employment standards in Tanzania regulate working hours, overtime, and employee rights. Standard work hours are nine per day, with a maximum of 12, including overtime. Collective agreements can allow average hours. These standards protect workers while ensuring compliance with Tanzanian labor laws.
In Tanzania, anyone who provides work or services to another person is presumed to be an employee unless proven otherwise. This rule, under the Labour Institutions Act, protects workers by recognizing employment rights even without a formal contract.
A contract of service creates an employer-employee relationship, with the employer responsible for PAYE tax deductions. A contract for service applies to independent contractors, who pay their own taxes. The main difference lies in legal responsibility, tax obligations, and employment protections.
To work in Tanzania, foreign employees need a valid employment contract, relevant professional qualifications, and certifications. Employers must demonstrate efforts to recruit locally, and applicants may be required to obtain a police clearance from their home country for legal and immigration compliance.
Conclusion on Employer of Record Tanzania
Choosing the best Tanzania Employer of Record can revolutionize how you manage your workforce. We empower businesses to thrive with our unwavering professionalism, comprehensive services, and deep understanding of the Tanzanian labor landscape.
Outsourcing our services allows you to streamline your HR processes, ensure compliance, and experience the benefits of a flexible and scalable workforce. Partner with us to unlock your company’s true potential.
