Guide to employment, payroll and benefits in

Tanzania, United Republic of

Rivermate offers complete payroll, benefits and compliance services for

Tanzania, United Republic of

01. Overview

Last updated: 

August 19, 2021

Tanzanian Shilling
Ease of doing business
GDP growth

02. Grow your team in

Tanzania, United Republic of

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Tanzania, United Republic of

, particularly if you don't have established local relationships. You can hire employees in

Tanzania, United Republic of

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Tanzania is a country in East Africa that is part of the African Great Lakes region. Its official name is the United Republic of Tanzania. Uganda is to the north, Kenya is to the northeast, the Comoro Islands are to the east, the Indian Ocean is to the east, Mozambique and Malawi are to the south, Zambia is to the southwest, and Rwanda, Burundi, and the Democratic Republic of the Congo are to the west. Mount Kilimanjaro, Africa's highest peak, is located in Tanzania's northeastern region. Many significant hominid fossils, including 6-million-year-old Pliocene hominid fossils, have been discovered in Tanzania. The Australopithecus species once roamed all of Africa, and the oldest fossils of the genus Homo can be found near Lake Olduvai. Following the 1.8 million-year-old rise of Homo erectus, mankind spread across the Old World, and later into the New World and Australia as Homo sapiens. H. H. Sapiens have conquered Africa and consumed humanity's older archaic species and subspecies. Prehistoric migrations into Tanzania later in the Stone and Bronze Age included Southern Cushitic speakers who migrated south from present-day Ethiopia; Eastern Cushitic people who moved north of Lake Turkana between 2,000 and 4,000 years ago; and the Southern Nilotes, including the Datoog, who emerged between 2,900 and 2,40 years ago from the present-day South Sudan–Ethiopia border area. These migrations occurred at the same time as the Mashariki Bantu from West Africa settled in the Lake Victoria and Lake Tanganyika regions. Between 2,300 and 1,700 years ago, they spread through the rest of Tanzania. German rule in mainland Tanzania started in the late 19th century, when Germany founded German East Africa. After World War I, British rule was established, with the mainland governed as Tanganyika and the Zanzibar Archipelago governed as a separate colonial jurisdiction. The two countries combined in 1964 to create the United Republic of Tanzania, following their independence in 1961 and 1963, respectively. Tanzania joined the British Commonwealth in 1961 as a single republic, and it is still a member of the Commonwealth today. Tanzania's population was projected by the United Nations to be 56.31 million in 2018, marginally less than South Africa's, making it the second most populated country entirely south of the Equator. Around 120 cultural, linguistic, and religious groups make up the population. Tanzania is a presidential republican republic, and Dodoma has served as the country's official capital since 1996, housing the president's office, the National Assembly, and all government ministries. Dar es Salaam, the former capital, still houses most government offices and serves as the country's largest city, main port, and commercial hub. Tanzania is a de facto one-party dictatorship, with the Chama Cha Mapinduzi Democratic Socialist Party in control.

04. Public holidays

05. Types of leave

Paid time off

Every year, employees are given 28 vacation days. For the running of the firm and if the employee consents, annual leave must be taken within six months of the leave cycle, or within 12 months if required.

Public holidays

The following public holidays are observed in Tanzania:New Year’s DayRevolution DayKarume DayGood FridayEaster MondayUnion DayInternational Workers’ DayId-el-Fitr festivalSaba Saba DayId-el-Haj festivalNane Nane (Farmer’s Day)Maulid DayIndependence and Republic DayChristmas Day

Sick days

Employees get a yearly sick leave allowance of 126 days. Employees receive full pay for the 63 days of paid leave and half pay for the remaining days.

Maternity leave

Female employees receive 84 days of paid maternity leave every 36 months (leave cycle) or 100 days of paid maternity leave if they have two or more children.

Paternity leave

Male employees receive three days of paternity leave.

Parental leave

Apart from maternity and paternity leave, there is no parental leave.

Other leave

06. Employment termination

Termination process

In Tanzania, the employer or employee may cancel the employment contract at the end of the contract with the approval of the parties. Employers must have a legitimate justification for terminating an employee's employment contract. Employee malfeasance, incapacity, incompatibility, or operational necessity are all valid grounds. Employers must provide advance notice of termination to employees.

Notice period

The notice period is four to twenty-eight days.

Severance pay

Severance pay must be at least equal to seven days' basic wage for each year worked, up to a maximum of ten years.

Probation period

The Employment and Labor Relations Act 2004 makes no explicit reference to probationary periods. However, this act implies a six-month probationary period by prohibiting an employee with less than six months of employment from bringing an unfair termination claim against the employer.

07. Working hours


A typical workweek is 45 hours long, or up to 9 hours per day. Employees in Tanzania may be required to work six days a week.


Overtime must be agreed upon between the employee and the employer, but the total number of hours worked per day cannot exceed 12. Additionally, overtime is limited to 50 hours over a four-week period and is compensated at a rate of at least 150% of the regular pay rate. On public holidays, employees are paid at a rate of 200 percent of their regular rate.

08. Minimum wage


The monthly minimum pay varies by sector, ranging from 40,000 TZS for domestic employees to 400,000 TZS for industries like as finance, telecommunications, and multinational corporations.

09. Employee benefits


Tanzania has public healthcare, although private treatment is advised.

After working for at least six months, all workers are entitled to at least 28 consecutive days of yearly leave, including time off for Tanzania's official holidays. Tanzania has a robust sick leave policy as well. Employees should be entitled to at least 126 days of sick leave, with 63 days paid at full pay and the remaining 63 paid at half wage.

Employees who are female have the entitlement to at least 12 weeks of maternity leave. They must, however, notify you as the employer and submit a medical certificate at least three months before they are scheduled to take the vacation. Employees are not permitted to return to work for at least six weeks after the birth of a child unless approved by a doctor.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Tanzania, United Republic of

to hire a team takes time, money, and effort. The labor law in

Tanzania, United Republic of

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Tanzania, United Republic of

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Tanzania, United Republic of

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Tanzania, United Republic of

via our Employer of Record / PEO solution.

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