Hire in Tanzania

EOR in Tanzania

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Tanzania, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Tanzania ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Tanzania and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Tanzania

The Employment and Labor Relations Act 2004 (ELRA) is the main source of employment regulation in mainland Tanzania, and the Labor Act 1997 is the main source of regulation in Zanzibar. The ELRA applies to most Tanzanian employees, including public servants, but it specifically excludes both temporary and permanent members of the Tanzania Peoples Defense Forces, the Police Force, the Prisons Service, and the National Service. This summary outlines the employment and labor laws of mainland Tanzania (which sometimes differ from the laws in Zanzibar).

Employment contracts in Tanzania

As you look to hire employees in Tanzania, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The standard workday is nine hours, inclusive of an hour meal break, and the standard workweek is 45 hours.

A written agreement may permit an employee to work up to 12 hours a day without receiving overtime pay, provided that working time does not exceed five days or 45 hours and 10 hours of overtime a week. Employees should not work more than 50 overtime hours in any four weeks.

An employee should have a 60-minute rest break after five hours of continuous work.

Generally, an employee is entitled to a weekly rest period of 24 hours. An employee may only work during the weekly rest period if the employee has agreed to do so.

Night work is work performed after 8 p.m. and before 6 a.m.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Monthly minimum wages are set by sector and paid in Tanzanian shillings as follows:
• Work beyond an employee’s standard schedule is paid as overtime at one and a half times the employee’s standard pay.
• The employer pays double the employee’s base hourly wage for each hour worked during the weekly rest period (if the employee has agreed to work during that period).
• Employees working night hours are entitled to an additional 5% of their base wages as a shift premium. If hours worked at night are overtime, the 5% must be calculated at the employee’s overtime rate.
• Employees receive time off with regular pay during public holidays. If an employee works on a public holiday, the employer must pay double the employee’s base hourly wage for each hour worked.
• Employees can be paid at an hourly, daily, weekly, or monthly wage rate.

As your employer of record in Tanzania, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Tanzania does not mandate employers to provide bonus payments to employees.

Termination and severance

The minimum notice of termination is 28 days for employees who work monthly, seven days if given in the first month of employment, and four days for employees who work on a daily or weekly basis. The parties may agree to a longer notice period provided it is of equal duration for the employer and the employee. Notice of termination must be in writing and must include the reasons for termination and the date on which notice was given.

If termination is for operational requirements, the employer is required to give notice, disclose all relevant information, and consult any trade union and non-union employees.

The ELRA bars employers from unfairly dismissing employees. Termination of employment is unfair if the employer fails to prove that the reason for the termination is valid and that the employment was terminated under fair procedure.

The ELRA requires severance pay of an amount equal to seven days’ wages for each year of continuous service with the employer for up to 10 years. An employer is required to pay severance on termination of employment if the employee has completed 12 months of continuous service and the employer terminates the employment. Severance is not required, however, when the termination is for misconduct or the employee is terminated on grounds of incapacity, incompatibility, or operational requirements and unreasonably refuses to accept alternative employment with that employer or any other employer.

Employee benefits and paid leave in Tanzania

When negotiating terms of an employment contract with a candidate in Tanzania, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

In a leave cycle of 36 months, an employee is entitled to 84 days of paid maternity leave if she gives birth to a single child or 100 days if more than one child.

If an employee requires additional time off due to birth complications, she can ask her employer to use sick or annual leave or take unpaid leave. An employee may commence maternity leave at any time from four weeks before the expected date of childbirth. An employee may begin maternity leave earlier if a medical practitioner certifies that it is necessary for the employee’s health or that of her child. No employee may work within six weeks after childbirth unless a medical practitioner certifies that she is fit to work.

The employee must give notice of the intention to take maternity leave at least three months before the expected date of birth, supported by a medical certificate. To be eligible for maternity leave, the employee must have worked for more than six months for the same employer and must not have taken similar leave within three years.

Cash maternity benefits are provided through the social security system. To qualify for benefits, the insured must have at least 36 months of contributions including at least 12 months in the 36 months immediately before the expected date of childbirth. Cash maternity benefits are paid to an insured woman only once in each three years. The benefit is equal to 100% of the insured woman’s average daily wage in the six months before the 20th week of pregnancy. The benefit is paid for up to 12 weeks in one or two installments:

• Four weeks before
• Eight weeks after childbirth (four weeks after childbirth for a stillborn child).

Medical benefits are also provided through the social security system. Pregnant employees receive prenatal and postnatal care from the 24th week of pregnancy until two days after childbirth, seven days after childbirth for a cesarean section, and up to 12 weeks if prolonged care is necessary.

Benefits include preventive and curative care, essential drugs, X-rays, laboratory tests, hospitalization, and major and minor surgery. The National Social Security Fund Board of trustees may determine additional benefits.

Vacation

Every employee is entitled to at least 28 consecutive days of annual leave with full pay after six months of employment.

An employer may determine when annual leave is to be taken. The employer is required to pay remuneration to employees before the commencement of their leave. The law prohibits payment in substitution of leave whether an employee consents or not.

Holidays

Tanzania recognizes the following public holidays:

• New Year
• Zanzibar Revolutionary Day
• Karume Memorial Day
• Union Day
• Workers Day (Labor Day)
• Saba Saba Day (Industrial Day)
• Peasants Day (Farmers Day)
• Nyerere Day
• Independence Day
• Christmas Day
• Boxing Day
• The religious festivals of Eid el Fitr, Id ul Haji, Maulid Day, Good Friday, Easter, and Easter Monday (days vary from year to year)

Holidays falling on Saturday or Sunday are not moved to a weekday.

Sick leave

An employee is entitled to sick leave of at least 126 days in any leave cycle. The first 63 days are paid at full wages and the second 63 days at half wages. An employer is not required to pay an employee for sick leave if the employee fails to produce a medical certificate or if the employee is entitled to paid sick leave under any law, fund, or collective agreement.

Health coverage

Benefits are funded by contributions from the employer (10% of gross payroll), the insured person (10% of gross earnings), and voluntary contributors.

Employees with at least 180 months of contributions to the system are entitled to receive a pension at 60 years; employees leaving the country are eligible at any age. Covered employment must cease. An early pension is paid from ages 55 to 59 with 180 months of contributions. An old age grant is paid at 60 with less than 180 months of contributions. Old-age grants are not payable abroad.

Additional benefits

In addition to healthcare benefits, employees in Tanzania are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Tanzania, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: June 24, 2024

Employee onboarding with an employer of record in Tanzania

We write and validate all local employment contracts, streamlining the onboarding process for you and your Tanzanian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Tanzania, we will:

• Schedule a welcome call to discuss HR and employment information for Tanzania, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Tanzania employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Tanzania. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.