Powering Payroll, Compliance & Workforce Management in Tanzania

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Tanzania at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Tanzania
Work Permits & Visas
  • Single Entry Visa: 90 days, for tourism, family visit, conference, humanitarian work, etc.
  • Business Visa: Up to 90 days for short-term professional assignments.
  • Multiple Entry Visa: Frequent visits for up to 12 months.
  • Residence Permits:
    • Class A: Self-employed investors.
    • Class B: Skilled workers in roles not available locally.
    • Class C: Researchers, retirees, volunteers, etc.
  • Payroll
    • Payroll Frequency: Weekly, fortnightly, or monthly.
    • Income Components: Salaries, bonuses, overtime, allowances, and taxable benefits.
    • Deductions: PAYE, Skills Development Levy, NSSF, and Workers' Compensation Fund.
    •  Employer Contributions: NSSF and statutory levies.
    •  Social Security Contributions:
      • Employer: Commonly 20% (may share cost with employee)
    Employment Contracts
    • Contracts may be fixed-term or indefinite.
    • Probation Period: Typically up to 6 months, extendable to 12 months for specialized roles.
    • Working Hours: Maximum 45 hours per week; overtime paid at 1.5x on weekdays and 2x on Sundays/public holidays.
    • Termination: Notice depends on pay cycle — up to 28 days for monthly workers — or pay in lieu. Severance applies after one year.
    • Collective agreements exist in certain industries.
    Employee Benefits
    • Annual Leave: Minimum 28 days per year.
    • Sick Leave: Up to 126 days in 36 months (first 63 days at full pay).
    • Maternity Leave: 84 days paid.
    • Social Security: NSSF provides pensions and related benefits.
    • Private Benefits: Health and life insurance often provided by employers.
    Tax Overview
    • Tax Residency: Individuals present in Tanzania for 183+ days in a year are residents.
    • Non-Residents: Taxed on Tanzania-sourced income.
    • Tax Year: January 1 – December 31.
    • Progressive monthly rates from 0% to 30%.
    Personal Income Tax
    Tanzania — Personal Income Tax (monthly taxable income)
    Monthly taxable income (TZS) Rate
    0 – 270,000 0%
    270,001 – 520,000 8%
    520,001 – 760,000 20%
    760,001 – 1,000,000 25%
    Above 1,000,000 30%
    Source: Praxima Country Guide — Tanzania. :contentReference[oaicite:14]{index=14}

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