Tanzania Regional Policy¶
This page contains human resources policies and regulatory requirements applicable to employees in Tanzania.
Social Insurance Policy (NSSF & PSSF)¶
NSSF Contribution Rates (Private Sector)¶
Total Contribution Rate: 20% (shared between employer and employee)
| Contributor | Rate |
|---|---|
| Employee | 5% |
| Employer | 15% |
| Total | 20% |
PSSF (Public Service Pension Fund - Public Sector)¶
Total Contribution Rate: 25%
| Contributor | Rate |
|---|---|
| Employee | 10% |
| Employer | 15% |
| Total | 25% |
Contribution Base¶
- No upper limit on contribution base
- Contributions calculated on gross salary (including basic salary and allowances)
Contribution Calculation Example (Private Sector)¶
| Monthly Salary (TZS) | Employee Contribution (5%) | Employer Contribution (15%) | Total |
|---|---|---|---|
| 1,000,000 | 50,000 | 150,000 | 200,000 |
| 2,500,000 | 125,000 | 375,000 | 500,000 |
| 5,000,000 | 250,000 | 750,000 | 1,000,000 |
Workers Compensation Fund (WCF)¶
Employer-only contribution: 1% of gross payroll
- Covers work-related injuries and occupational diseases
- Paid entirely by employer
Personal Income Tax Policy (PAYE)¶
Tax-Free Threshold¶
Monthly income TZS 270,000 (Annual income TZS 3,240,000)
Individual Income Tax Rate Table (2025)¶
| Monthly Taxable Income (TZS) | Tax Rate | Cumulative Tax |
|---|---|---|
| 0 - 270,000 | 0% | Exempt |
| 270,001 - 520,000 | 8% | 0 + 8% of amount exceeding 270,000 |
| 520,001 - 760,000 | 20% | 20,000 + 20% of amount exceeding 520,000 |
| 760,001 - 1,000,000 | 25% | 68,000 + 25% of amount exceeding 760,000 |
| Over 1,000,000 | 30% | 128,000 + 30% of amount exceeding 1,000,000 |
Skills and Development Levy (SDL)¶
Rate: 5% of gross payroll (paid by employer)
- Applies to employers with annual payroll exceeding TZS 1 million
- Used for vocational training and skills development
Tax Calculation Example¶
Monthly salary: TZS 1,500,000
- First TZS 270,000: Exempt = TZS 0
- TZS 270,001 - 520,000: TZS 250,000 × 8% = TZS 20,000
- TZS 520,001 - 760,000: TZS 240,000 × 20% = TZS 48,000
- TZS 760,001 - 1,000,000: TZS 240,000 × 25% = TZS 60,000
- TZS 1,000,001 - 1,500,000: TZS 500,000 × 30% = TZS 150,000
Total monthly tax: TZS 278,000 (effective rate: 18.5%)
Labor Laws¶
Employment Contract¶
- Written contract required: Within 3 months of employment start
- Probation period: Maximum 6 months (3 months renewable once)
- Contract types: Fixed-term (maximum 5 years) and indefinite-term
Working Hours System¶
- Standard hours: 8 hours/day, 45 hours/week (6-day week) or 40 hours/week (5-day week)
- Maximum hours: 50 hours/week (including overtime)
- Weekly rest: At least 24 consecutive hours
Overtime Pay Standards¶
- Weekday overtime: 150% of regular wage
- Weekend: 200% of regular wage
- Public holiday: 200% of regular wage
- Night shift (7 PM - 6 AM): Additional 10% premium
Annual Leave System¶
- Minimum entitlement: 28 days per year (after 12 months of service)
- Public holidays: 13 days per year
- Sick leave: 126 days in any 3-year period (63 days full pay + 63 days half pay)
Maternity Leave¶
- Duration: 12 weeks (84 days)
- Pre-birth: Minimum 4 weeks before expected delivery date
- Payment: Full salary for 84 days
Notice Period¶
- Probation period: 7 days
- Less than 1 year service: 28 days
- 1-5 years service: 56 days
- Over 5 years service: 84 days
Last Updated: 2026-01-30