COUNTRY

Written Agreements

A written contract is mandatory if the employee is to work outside of Tanzania. If there is no written contract, the employer must provide a written statement of employment particulars. This statement must include details on both the employee and the employer's identities, place of work, remuneration, working hours, contract duration, etc.

Employers must keep this statement for 5 years after termination of the contract.

Oral Agreements

The burden of proving or disproving an alleged term of employment, in the absence of a written contract or written particulars of the agreement, falls on the employer.

Implied Agreements

In Tanzania, there are no provisions or guidance on implied contracts. In the absence of a written contract, the burden of proving or disproving an alleged term of employment falls on the employer.

In Tanzania, the maximum number of working hours is 9 hours per day and 45 hours per week. If a written agreement exists, employees working greater than this number are eligible for overtime, but no more than 50 overtime hours are permitted in any 4-week cycle.

Employees above 14 and under 18 years of age are allowed to work for no more than 6 hours a day. Those who are still students can only work for a maximum of 3 hours per day.

New Year’s Day (January 1), Zanzibar Revolution Day (January 12), Good Friday (April), Easter Sunday (April), Easter Monday (April), The Sheikh Abeid Amani Karume Day (April7), Union Day (April 26), May Day / International Workers’ Day (May 1), Eid El Fitre, Saba Saba Day (July 7), Nane Nane Day / Farmers Day (August 8), Eid al-Adha, Uhuru Torch Race (October 14), Independence Day Celebrations (December 9), Mawlid Day (December 25), Christmas Day (December 25), Boxing Day (December 26).

Employees are entitled to 28 days paid annual leave after a year of service. The remuneration is paid in advance and is equal to what the employee would have been paid if they had worked during the leave period.

Annual leave can be deferred for a maximum of 6 months after the end of the leave cycle or 12 months if the extension is justified by the employer's operational requirements, and the employer has obtained the employee's consent. An employee shall be paid a 1-month salary in lieu of annual leave if they have not taken the leave within the prescribed period, or they were called upon to work.

Employers must pay a pro-rata amount for annual leave accrued at the termination of employment or at the end of each season if the employee was hired on a seasonal basis.

Employees are entitled to paid sick leave for 126 days in a leave cycle of 36 months, provided they present a medical certificate. Wages are paid in full for the first 63 days of the sick leave, whereas half of the wages are paid for the leave's remaining 63 days. The employee must have worked for the same employer for at least six months in the 12 months before the sickness.

An employer may not dismiss an employee during their sickness and occupational disease period. If an employee is unable to work due to poor health condition even after the sick leave has been exhausted, an employer may terminate the contract following a notice period of not less than 28 days or provide payment in lieu of notice. Employees are not entitled to any other compensation. This dismissal must happen after approval from a Conciliation Board.

Female employees are entitled to 84 days paid maternity leave, or 100 days if they give birth to more than one child at a time. A pregnant employee may commence her maternity leave any time from 4 weeks before the expected date of birth onwards or earlier if a doctor certifies that it is necessary for her health or that of her child's. She must be provided at least 6 weeks of leave after childbirth. If the child dies within a year of birth, the mother is entitled to an additional 84 days of paid maternity leave. Maternity leave can be taken up to 4 times under the same employer. Maternity benefits are payable by the National Social Security Fund to an insured person who has made at least 36 monthly contributions, of which 12 contributions were made in the 36 months before the date of birth.

A pregnant female employee must notify her employer of her maternity leave's commencement at least 3 months before the expected date of birth with a medical certificate.

Pregnant employees must not be made to work in environments hazardous to their health or that of their child's. It is prohibited for employers to dismiss an employee due to her pregnancy.

The Employment and Labour Relations Act of Tanzania provides fathers at least 3 days of paid paternity leave to be taken within 7 days of their child's birth. Reasonable proof of the birth of their child may be required. In the event of sickness or death of the employee's child, the father is entitled to at least 4 days of paid leave.

Minimum Wage

The current minimum wage rates for the mainland range from TZS 140,000 (Tanzanian shilling) in the agriculture sector to TZS 592,000 for mining, communication and commercial services.

In Tanzania, the Minimum Wage Board sets the minimum wage by sector as per the Labor Institutions Act.

Wages must be paid at the end of the contract period on a mutually agreed day, daily, weekly or monthly.

Overtime, Holiday & Vacation Pay

Work done beyond 9 hours a day or 45 hours a week is considered overtime. Overtime work is paid at least 1.5 times the basic wage when done during the day, and an additional 5% is paid for overtime done during the night. Employees may only work overtime in accordance with an agreement, and no more than 50 overtime hours in any 4-week cycle are permitted. Collective agreements can limit overtime to 10 hours per week. Young employees cannot be allowed to work overtime.

Work done during holidays or weekly rest days is paid at twice the employee's basic wage for each hour worked on that day.

Annual leave is paid in advance at normal wage rates.

Notice Period

According to the Employment and Labor Relations Act of 2004, the notice period is as follows:

• No less than 7 days if given in the first month
• A minimum of 4 days’ notice after the first month, if employment is on a daily or weekly basis
• A minimum of 28 days if the employee is employed on a monthly basis

The notice must be given in writing and must state both the reason for termination and the date on which the notice is given. The notice period can be waived by paying the remuneration that the employee would have received during the notice period if they had worked.

Severance Benefits

In Tanzania, employees who have worked for an employer for at least a year are entitled to severance pay upon dismissal. Severance benefits are paid as 7 days' basic wage for each year of continuous service completed with that employer, up to a maximum of 10 years.

Severance benefits are not paid if the employee is dismissed fairly on the grounds of misconduct.

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.