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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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Hire and pay talents
with Horizons in
180+ countries
Horizons enables any business, anywhere in the world, to easily hire employees in Tanzania — in compliance with local tax and labor laws. The Horizons Tanzania PEO solution enables your company to hire a Tanzania-based team, without the need for a local entity or subsidiary.
When you engage a Tanzania PEO, you save your business time and money, and guarantee compliance.
| PEO Platform Hire in Tanzania , and pay employees through our platform or app. | PEO Cost Our Tanzania PEO solution is the most affordable on the market. | Time-to-hire Fast Tanzania onboarding, hire in as little as 24 hours. |
| Contracts We draft compliant Tanzania labor contracts. | Local benefits We manage all mandatory & optional Tanzania benefits, including health insurance. | 180+ Countries It doesn’t stop with Tanzania — we hire employees globally. |
A Professional Employer Organization (PEO) is a company that provides HR services to businesses, including payroll, benefits, compliance, and HR administration. A Tanzania PEO is an organization that provides these HR services to businesses that are looking to hire employees in Tanzania.
The orgnization could be a domestic PEO, only supporting based in Tanzania and only hiring and processing payroll in Tanzania. Or they could be a Global PEO, supporting companies hiring employees all over the world, including in Tanzania.
Tanzania is an ideal location for many international companies seeking to hire in Africa. It is one of the most prosperous countries in Africa, with a population of 60 million, and rated the second most popular African location for wildlife tourism.
PEOs can support international companies that want to hire employees in Tanzania by taking over the HR, payroll and compliance tasks and responsibilities that come with Tanzania employment. This helps international companies focus on expanding into a new African market, or simply getting the best out of their Tanzania-based team.
There are several potential benefits of using a Professional Employer Organization (PEO) in Tanzania:
It is worth noting that the specific benefits of a Tanzania PEO will depend on the services they offer and the needs of the business.
PEOs in Tanzania can support businesses in a number of ways. This includes:
Guiding companies on local labor laws and regulations: This is particularly true of international businesses who are likely unfamiliar with local laws.
Assisting with recruitment: Many top PEOs offer recruitment supporting including advertising jobs, reviewing applications and carrying out initial interviews.
Handling onboarding and orientation: Tanzania PEOs support companies in Tanzania by setting up payroll, and providing new hires with all the necessary information to begin work.
Administering employee benefits: PEOs can design and implement employee benefit plans, including health insurance and retirement plans, and administer those benefits on behalf of client companies.
Managing payroll and tax withholding: PEOs handle the calculation and issuing of salaries and wages, the withholding of taxes, and making required tax payments on behalf of the business.
A Tanzania PEO can administer benefits for all your Tanzania-based staff. This includes leave management, pensions, healthcare and various social contributions.
When it comes to paid time off (PTO) employees in Tanzania received 21 days paid annual leave. In addition to this are several paid national holidays in Tanzania. These are:
Tanzania has a range of national public holidays that are celebrated annually. In 2023 these holidays 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 parental and maternity leave requirements in Tanzania are outlined in the Employment and Labor Relations Act 2004. This provides that female employees are entitled to a minimum of 90 days of maternity leave. This covers leave both before and after delivery. Male employees have an entitlement of at least 14 days of paternity leave.
During paid maternity or paternity leave, all employees are entitled to receive their full salary or wages.
In addition to the statutory minimum leave entitlements, some employers in Tanzania offer additional leave or benefits to those seeking to take parental leave.
Under the National Social Security Fund Act (NSSF) employers and employees are required to make compulsory contributions to this fund. The NSSF provides retirement benefits, survivor benefits, and disability benefits to all employees, except those covered by other schemes.
Employers are required to pay 10 percent of gross salary/wages into this fund, while employees are also required to pay 10 percent, resulting in a total contribution of 20 percent. A failure to make the required employer contributions, or withhold the required employee contributions on their behalf can result in fines and penalties.
PAYE (Pay As You Earn) is Tanzania system of employee income tax withholding, 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, ensuring 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:
Employees may be eligible for a tax credit, also known as a personal allowance, which is a deduction from their taxable income. The tax credit for the current tax year (2022/23) is TZS 480,000 (approx. USD 205).
Note, it is important that employers correctly withholding and remit PAYE in order to protect themselves from serious fines or other regulatory action from the TRA.
In Tanzania, there is 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.
Note also 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 who are not covered by an employer-provided plan. Currently, contributions to this fund are required for some employees (e.g. public sector) but not all.
Tanzania Professional Employer Organization (PEO) solutions take the stress out of hiring employees in Tanzania. Through a PEO solution, any company, anywhere in the world can hire employees in Tanzania, quicky and cost-effectively.
With Horizons, you get quick service, transparent pricing, and expert support.
A Tanzania PEO offers a full HR and employment service, covering compliant hiring and payroll, but also often providing recruitment, visa support and HR advisory services.
A Tanzania PEO is a good option for international businesses that seek to hire and pay employees in Tanzania in full compliance with tax and labor laws.
Headquarters
71 Robinson Road #13-153
Singapore 068895
+65 3158 1382
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10997, Berlin
+49 30 3119 9653
Americas
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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