Pension
Tanzania's National Social Security Fund (NSSF) provides retirement pensions to insured private-sector employees at the age of 60 years. The employees must have made at least 180 monthly contributions to NSSF. Employees may avail themselves of early retirement at the age of 55 years with 180 monthly contributions.
Old-age benefits are paid as an initial lump-sum and monthly pension. The minimum pension is 40% of the sectoral minimum wage, and the maximum is 72.5% of the average monthly salary of the employee in the 3 best years of the last 10 years.
Public-sector employees are covered under the Public Service Social Security Fund. Eligibility conditions and calculations of benefits are the same as those for private-sector employees.
Dependents/Survivors Benefits
Dependents/survivors of people insured under the National Social Security Fund (NSSF) are entitled to survivor's pension if, at the time of death, the insured person was entitled to an invalidity pension or would have been entitled to retirement pension. Dependents include spouses, children under 18 or 21 years if in full-time education, or parents if there is no widow and orphans.
Where an insured person dies while receiving retirement or invalidity pension, the survivors shall be entitled to a lump sum grant equal to 33 times the monthly pension for private-sector employees and 36 times the monthly pension for public sector employees. When an employee dies due to a work-related accident or illness, benefits are provided to their survivors by the Workers Compensation Fund (WCF).
Both employees and employers pay contributions to social security. Only employers pay for the Workers' Compensation Fund.
Invalidity Benefits
An invalidity pension is payable by the National Social Security Fund (NSSF) of Tanzania to an insured person who is under the retirement age, has lost at least 2/3rd of their earning capacity, and has made 180 monthly contributions to the NSSF, or at least 36 monthly contributions, of which 12 were made in the last 36 months immediately preceding the onset of disability. The benefits for disability due to work accidents or occupational accidents are covered by the Workers' Compensation Fund (WCF). Benefits are paid for temporary and permanent disability. Disability benefits for public-sector employees are covered under the Public Service Social Security Fund Act. Eligibility criteria and pension benefits are the same as those of private-sector employees.
Disability pension is calculated in the same manner as the retirement pension and is increased by 1% of the average wage for each year of contributions beyond 180 months. The minimum monthly disability pension is 80% of the national minimum wage.
Both employees and employers pay contributions to social security. Only employers pay contributions to the Workers' Compensation Fund.