Work and Wages
Minimum Wage
In accordance with the constitution of Tanzania, every person without discrimination of any kind is entitled to remuneration commensurate with work and all persons working according to their ability are remunerated according to the measure and qualification for the work. Every person is entitled to just remuneration.
The wage rates are determined by Wage Boards constituted in accordance with the Labour Institutions Order 2007. The minimum wage rates are fixed under the Wages Order. While determining the minimum wage, the Wage Board takes into account all relevant factors including the cost of living; level of wages and income in the country; economic development; level of employment; the minimum subsistence level; ability of employers to carry on their businesses; operation of small, medium and micro enterprises; the remuneration and terms and conditions of employment of workers employed in the East African Community in the sector; any collective agreements providing for remuneration and terms and conditions of employment in the sector; alleviation of poverty; and any other relevant matter.
Minimum wage rates are determined for the following sectors: Health services; agriculture services; Trade, industries and commercial services; communication services; min ing; Private schools services (Nursery, Primary and Secondary schools); Domestic and Hospital Services; Private Security Services; Energy Services; Transport Services; Construction Services; Fishing and Marine Services; and other sectors not mentioned above.
Minimum wage compliance is regulated through the Labour Administration and Inspection Services Department, which works under the Ministry of Labour and Employment. Labour Officers under this department have been empowered by the Labour Institutions Act, 2004, to oversee compliance with employment standards, including the Minimum Wage Order and other terms and conditions of employment.
In case an employer does not comply with the labour law, the Labour Officer issues a compliance order, and if the employer fails to comply with the lawful order, the employer is prosecuted, and if convicted, he is liable to a fine not exceeding five million shillings, or imprisonment for a period of 3 months or both.
Source: §23 of the Constitution of Tanzania; §37 & 64(2) of the Labour Institutions Act 2004; §14-18 of the Employment and Labour Laws (Miscellaneous Amendments) Act, 2015
Regular Pay
The Employment and Labour Relations Act 2004 differentiate between ''remuneration'' and "basic wage". Remuneration is the total value of all payments, in money or in kind, made or owing to a worker arising from the employment of that worker. Basic wage means that part of a worker's remuneration paid in respect of work done during the hours ordinarily worked, but does not include allowances (whether or not based on the worker's basic wage) and pay for overtime work.
The Employment and Labour Relations Act regulates the payment of wages to all classes of workers. According to this Act, wages can be calculated on an hourly, daily, weekly or monthly basis. Workers employed on a basis other than time worked are paid weekly, and their wages are calculated on the basis of the average amount earned over 13 weeks or according to their period of employment (if it is less than 13 weeks).
Employers are obliged to pay the worker his/her wages during working hours at the place of work on the agreed payday in a sealed envelope if payment is made in cash or through a cheque. Wage may be deposited directly into an account designated by the worker in writing. The Minister responsible for labour matters may allow partial payment of wages in kind instead of cash for the personal use of the worker and his/her family.
Generally, an employer is not allowed to deduct wages unless required or permitted under a written law, collective agreement, wage determination, court order or arbitration award. Deduction may also be made if a worker agrees in writing to the deduction in respect of a debt or to reimburse the employer for loss or damage caused by the worker. Total amount of deduction must not be more than one quarter of the worker's remuneration in cash.
An employer should provide pay slips to all workers along with payment in cash or by cheque, or give them to a worker in a sealed envelope in case of direct deposit. Section 12 of the Employment and Labour Relations (General) Regulations, 2017 has detailed provisions on the particulars of the pay slip.
There is no mandatory provision in law for a 13th or 14th month pay or a compulsory bonus. However, an employer may voluntarily provide a bonus based on employment contracts, collective bargaining agreements (CBAs), company policies or discretionary awards
Source: §26-27 of the Employment and Labour Relations Act 2004
Regulations on Work and Wages
- The Constitution of the United Republic of Tanzania, 1977 (amended in 2005) / Katiba ya Jamuhuri ya Muungano wa Tanzania, 1977 (imefanyiwa marekebisho mwaka 1995)
- Employment and Labour Relations Act, No. 6 of 2004 / Sheria ya Ajira na Mahusiano Kazini Sehemu ya 6 ya 2004
- Part V of Labour Institutions Act, No.7 of 2004 (through Regulation of Wages and terms of Employment Order, 2013 aka The Wage Order) / Sehemu ya tano ya Sheria ya Kanuni za Ajira na Mahusiano kazini namba 7 ya 2004 (kupitia Taratibu zamishahara na kanuni za Ajira (The Wage Order))
- Public Holidays Ordinance, 1966 / Sheria ya sikukuu za kitaifa, 1966
- National Social Security Fund Act, 1997 / Sheria ya Mfuko wa Hifandhi ya Taifa ya Jamii (NSSF) Mwaka, 1997
- Occupational Health and Safety Act, 2003 / Sheria ya Afya na Usalama Mahali pa kazi mwaka 2003
- The Penal Code, 1945 / Kanuni za adhabu, 1945
- Law of the Child Employment Act, 2009 / Sheria ya Haki za Mtoto, 2009
