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SALARY PAYMENT IN Tanzanian Shilling (TZS)
CONTRACT LANGUAGE English & Arabic
PAYROLL TAX 15.00%
PAYROLL CYCLE Weekly or monthly
TIME TO HIRE 24 hours
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Through the Horizons Employer of Record (EOR) solution, an international business can hire employees in Tanzania — in full compliance with local tax and labor laws. The Horizons Tanzania EOR solution means that Horizons takes on the employment compliance responsibilities for your Tanzania-based team, leaving you to focus on core business.
By engaging a Tanzania EOR solution, you save time and money, and guarantee full compliance with local laws.
Through Horizons, international companies can legally hire in Tanzania — without the need for an expensive local subsidiary.
Through the Horizon EOR solutions, new employees in Tanzania can be hired, with onboarding initiated, within 24 hours.
Experts in Tanzania labor and employment tax law ensure you are fully compliant with all applicable laws.
Horizons ensures accurate salary and payroll processing for all Tanzania-based employees. The Horizons EOR platform makes income tax withholding and expense management easy.
Horizons ensures that all Tanzania-based employees are welcomed onboard with compliant labor documentation and contracts.
Horizons ensures that employment in Tanzania is compliant, and deals with any legal and compliance issues as they arise.
With a Tanzania EOR solution, you save up to 85 percent of the total cost of hiring in Tanzania.
Hire and pay talents
with Horizons in
180+ countries
There are several benefits of using an Employer of Record (EOR) solution in Tanzania.
First, it ensures compliance with local laws and regulations. The EOR ensures compliance with all local labor laws and regulations, including obtaining necessary permits and licenses, withholding and remitting taxes and social security contributions, and providing employee benefits. This helps to mitigate the risk of non-compliance and potential fines or penalties.
Second, it reduces the administrative burden on international companies. The Tanzania EOR handles all aspects of the employment relationship, including recruiting, hiring, and managing employees, reducing the paperwork and administrative tasks that would otherwise fall on the client company.
Third, it provides flexibility. An EOR solution allows companies to expand into Tanzania quickly and easily, without the need to establish a subsidiary or branch office. This flexibility allows companies to enter the market quickly, test the waters, and adjust their strategy as needed.
Fourth, it provides cost savings. An EOR solution is significantly less expensive than establishing a subsidiary or branch office in Tanzania. Additionally, the EOR is responsible for providing employee benefits, which can be costly for foreign companies.
A Tanzania EOR is an HR and payroll compliance expert. They have an in-depth understanding of local employment and tax laws, and become legally responsible, and take on liabilities, with respect to employment compliance
A Tanzania EOR provides compliant draft employment contracts (in either English or Swahili), offers ad hoc advice on legal and compliance matters, and takes on a range of legal duties.
Specifically, a Tanzania EOR ensures compliance in some of the legal areas specified below.
A Tanzania EOR administers benefits for all Tanzania-based staff. This means leave management, as well as pension contributions, healthcare and various other social contributions.
When it comes to paid vacation, employees in Tanzania received 21 days paid annual leave. In addition to this are several paid national holidays in Tanzania. These are:
| Date | Holiday name |
|---|---|
| 1 Jan Sunday | New Year’s Day |
| 12 Jan Thursday | Zanzibar Revolution Day |
| 7 Apr Friday | Karume Day, Good Friday |
| 10 Apr Monday | Easter Monday |
| 22 Apr Saturday | Eid el Fitri (Tentative Date) |
| 23 Apr Sunday | Eid el Fitri Holiday (Tentative Date) |
| 26 Apr Wednesday | Union Day |
| 1 May Monday | Worker’s Day |
| 29 Jun Thursday | Eid al-Adha (Tentative Date) |
| 7 Jul Friday | Saba Saba |
| 8 Aug Tuesday | Farmers’ Day |
| 27 Sep Wednesday | Maulid (Tentative Date) |
| 14 Oct Saturday | Mwalimu Nyerere Day |
| 9 Dec Saturday | Independence Day |
| 25 Dec Monday | Christmas Day |
| 26 Dec Tuesday | Boxing Day |
Note also that there are some regional or local holidays that are only celebrated in certain parts of Tanzania.
The legal requirements for parental leave in Tanzania are outlined in the Employment and Labor Relations Act 2004. This specifies that female employees are entitled to a minimum of 90 days maternity leave. This covers leave both prior to and after delivery. Male employees are entitled to at least 14 days of paternity leave.
During paid parental leave, all employees are entitled to receive their full salary or wages.
As well as the statutory minimum leave entitlements, many Tanzania employers offer additional leave or benefits to those seeking to take parental leave.
PAYE (Pay As You Earn) is the name given to employee income tax withholding in Tanzania. This system is administered by the Tanzania Revenue Authority (TRA). Under the PAYE system, employers are required to deduct income tax from their employees’ salaries or wages on a monthly basis and remit the tax to the TRA.
The PAYE tax rates in Tanzania are progressive, meaning that the tax rate increases as an employee’s taxable income increases. The tax rates for the current tax year (2022/23) are as follows:
There is a special tax credit, also known as a personal allowance, available for some employees as a deduction from their taxable income. The tax credit for the current tax year (2022/23) is TZS 480,000.
Note, it is important that employers correctly withhold and remit PAYE in order to protect themselves from serious fines or other penalties from the TRA.
Tanzania recognizes no legal requirement for employers to provide health insurance to their employees, though employers may offer it voluntarily. Note, however, that as part of the NSSF, limited health benefits are available.
It is also worth noting that employees may be able to access insurance through the National Health Insurance Fund (NHIF) — a statutory body that provides health insurance to workers in Tanzania not otherwise covered by an employer-provided plan. Currently, contributions to this fund are required for some employees (e.g. public sector) but not all.
Tanzania Employer of Record (EOR) solutions take the stress out of hiring employees in Tanzania. Through an EOR solution, any company, anywhere in the world can hire employees in Tanzania, quickly and cost-effectively.
A Tanzania EOR hires employees on behalf of your company and ensures full compliance with local employer and tax laws. A Tanzania PEO usually provides an EOR solution, but often offers other HR services such as visa support, recruitment, and HR advisory services.
A Tanzania EOR solution is a good way of ensuring that your hiring in Tanzania is legally compliant, without the cost and hassle of setting up a local subsidiary or branch.
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