Employment in mainland Tanzania is governed by the Employment and Labour Relations Act (Cap. 366), as amended most recently by the Labour Laws (Amendments) Act, 2025. Zanzibar has its own employment laws. Here is what employers need to know about leave, pay, tax, payroll contributions and ending employment.
Paid leave under the Act applies once an employee has 6 months of service (seasonal workers are covered from the start). Annual leave runs on a 12-month leave cycle, while sick, maternity, paternity and compassionate leave run on a 36-month cycle.
28 consecutive days per 12-month cycle, including any public holidays that fall within it. Leave must be taken within 6 months of the end of the cycle (12 months with the employee’s consent).
Per 36-month cycle: the first 63 days on full pay and the next 63 days on half pay, supported by a medical certificate.
100 days for multiple births. Paid maternity leave is guaranteed for up to 4 terms with the same employer.
Taken within 7 days of the birth. Since the 2025 amendments, fathers of premature babies receive 7 days.
An employee should give at least 3 months’ notice of maternity leave with a medical certificate, and may start leave from 4 weeks before the expected birth. She may not work within 6 weeks after the birth unless certified fit. Mothers of premature babies are entitled to paid maternity leave until the child reaches 40 weeks of gestation, and a further 84 days is available if the child dies within a year of birth. Nursing mothers may take up to 2 hours a day during working hours to feed their child.
Set up each Tanzanian leave type in IceHrm with its own accrual, carry forward and approval rules, including sick leave tracked across its longer cycle. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Tanzania has no single national minimum wage. Minimum wages are set by sector through Wage Orders issued under the Labour Institutions Act and are reviewed periodically, so check the current order for each sector you employ in.
Up to 9 ordinary hours a day and 6 days a week. No more than 12 hours in total in any day.
At least one and a half times basic wage, only by agreement and capped at 50 overtime hours in any 4-week cycle.
Extra pay of at least 5% of basic wage for each hour worked between 20:00 and 06:00.
Capture attendance, overtime and night hours in IceHrm and feed them straight into payroll, so the overtime and night premiums reflect what was actually worked. Time & attendance →
Employers deduct income tax from employees’ pay each month under PAYE and pay it to the Tanzania Revenue Authority (TRA). Residents are taxed on worldwide income at progressive rates, while non-residents pay a flat 15% final tax on employment income.
| Monthly taxable income | Rate | Tax on this income |
|---|---|---|
| TZS 0 – TZS 270,000 | 0% | Nil |
| TZS 270,001 – TZS 520,000 | 8% | 8% of the amount over TZS 270,000 |
| TZS 520,001 – TZS 760,000 | 20% | TZS 20,000 plus 20% over TZS 520,000 |
| TZS 760,001 – TZS 1,000,000 | 25% | TZS 68,000 plus 25% over TZS 760,000 |
| Over TZS 1,000,000 | 30% | TZS 128,000 plus 30% over TZS 1,000,000 |
Private sector employers contribute to the National Social Security Fund (NSSF) and the Workers Compensation Fund (WCF), and larger employers also pay the Skills and Development Levy (SDL).
Of the employee’s gross pay. The employer pays it and may recover up to half (10%) from the employee.
Of gross cash emoluments, paid by employers with 10 or more employees. Some education and religious health institutions are exempt.
Of cash sums paid to employees, payable monthly with a monthly return.
Public sector employees are covered by the Public Service Social Security Fund (PSSSF) instead of the NSSF, also at a total rate of 20%.
Build Tanzanian pay the way you already structure it, with your own salary components, deductions and formula columns, such as NSSF and SDL columns. Want to know how well IceHrm handles payroll calculations for Tanzania? Contact us or see Payroll →
Once an employee has 6 months of service with the same employer, a termination must be fair: there must be a valid reason related to conduct, capacity, compatibility or the employer’s operational requirements, and a fair procedure must be followed.
| Situation | Notice |
|---|---|
| During the first month of employment | 7 days |
| After the first month, daily or weekly paid | 4 days |
| After the first month, monthly paid | 28 days |
When the employer ends employment after at least 12 months of continuous service, the employee is entitled to severance pay of at least 7 days’ basic wage for each completed year of service, up to a maximum of 10 years. It is not payable on a fair dismissal for misconduct, on retirement, when a fixed-term contract expires, or when an employee unreasonably refuses suitable alternative employment.
On termination the employer must also pay outstanding wages, accrued annual leave, and transport back to the place of recruitment if employment ends elsewhere, and must issue a certificate of service.
Tanzania observes national, Christian and Muslim holidays. Islamic holiday dates follow the lunar calendar and are confirmed close to the day, so they move about 11 days earlier each year.
Public holidays that fall during an employee’s annual leave count as part of the 28 days rather than extending it.
Leave groups give each office its own holiday calendar, so you can add the Islamic holidays each year once their dates are confirmed and keep mainland and Zanzibar teams on the right calendar. Holiday calendars →
The Act allows three types of contract: open-ended contracts, fixed-term contracts for professionals and managerial staff, and contracts for a specific task. Contracts must be in writing where the employee is to work within or outside Tanzania.
The particulars must be explained if the employee does not understand them, updated in writing when they change, and kept for 5 years after employment ends. Employers must also display a statement of employee rights at the workplace.
Send contracts and written particulars for e-signing, keep them on the employee’s record for as long as you need, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Tanzania, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Tanzania? Talk to us.
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