Tanzania Employer of Record & Payroll
Africa Deployments Tanzania offers our clients Africa Employer of Record solutions in Tanzania covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Tanzania for local & expatriate hires. ADS will apply for the work permits through our umbrella company and issue local work contracts to your contractors. We will also advise our client’s on the best Human Resource (HR) practices when setting up employee’s locally in Tanzania.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
In addition to our services we can offer you the employee in Tanzania, Medical, Disability, Life, and Workmen’s Compensation Insurances.
Tanzania is an East African country characterised by vast wilderness areas and a narrow coastal plain on the eastern seaboard of the Indian Ocean. The coastline of Tanzania Mainland is ±800 km long, extending from the Kenyan border in the north to the Mozambican border in the south.
Tanganyika and Zanzibar united on 26th April 1964, forming the United Republic of Tanzania, now home to ±65 million people, of whom ±½ million live in the capital city of Dodoma. Dodoma is considered the official capital of Tanzania, but Dar es Salaam remains the political and business centre.
Tanzania is famous for the Great Wildebeest Migration – each year, millions of animals such as wildebeest, zebra, and gazelle make their way across this land in search of water and fresh pasture, braving the raging Mara River, filled with waiting crocodiles.
The plains of Serengeti National Park – a World Heritage Site and 7th world wonder populated by the “big five” game (elephant, lion, leopard, buffalo, rhino) – and Kilimanjaro National Park – are also found in Tanzania.
Ernest Hemingway wrote about the beauty of Mount Kilimanjaro – standing ±5,895 meters above sea level, this mountain is the tallest in Africa, and the highest freestanding mountain in the world.
In fact nearly 30% of Tanzania is National Parks, including the Selous Game Reserve, the world’s largest game reserve, boasting more than 120,000 elephants, 160,000 buffalos, 2000 rhinos and large concentrations of hippos, crocodiles and wild dogs.
Other must-see destinations are the world-famous Ngorongoro Crater and Lake Tanganyika.
Offshore lie the tropical islands of Zanzibar, with stunning beaches, and Mafia, with a marine park home to whale sharks and coral reefs.
What is the main language spoken in Tanzania:
Swahili / English
The official language in Tanzania is Swahili – with English being the second official language and the country’s commercial language.
There are more speakers of Swahili than of English in Tanzania.
Being a multilingual country, there are over ±120 other local dialects spoken in Tanzania.
What type of employment contracts can you offer in Tanzania:
Through our employer of record (EOR) solutions in Tanzania, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 12 months [maximum]
- An employer may after consultation with the employee extend the probationary period for a further reasonable period if the employer has not yet been able to properly assess whether the employee is competent to do the job or suitable for employment
WHAT INCOME IS TAXABLE IN Tanzania:
Residents are subject to income tax on worldwide income. Non-residents are subject to tax on Tanzania-source income only.
All expatriates are required to pay tax on income earned in Tanzania, except for those who enter the country under special agreements with the government.
Individuals are considered residents if they meet any of the following conditions:
- They are present for 183 days or more in the year of income.
- They are present for an average of 122 days or more in the year of income and in each of the two preceding years of income.
- They have a permanent home in Tanzania and are present for any length of time during the year of income.
- They are employees or officials of the government of Tanzania and are posted abroad during the year of income
What income is exempt from taxes in Tanzania:
- Traveling costs if the employee and family are domiciled more than 20 miles from their employment
- Café services on the business premises
- Contributions to an approved pension and provident fund
- Medical services
- Traveling, entertainment or other allowances with respect to business activities.
- Motor vehicle allowances for ownership, maintenance or operations of the vehicle
- Housing, transport, responsibility, extra duty, hardship allowances and honoraria payable to an employee of the Government.
Standard working hours: Number Overtime to be paid?
- Full-time employees in Tanzania can work up to 9 hours per day.
- The 9 hours of work do not include a 1-hour lunch break, which is applicable only if the employee works continuously for five hours.
- The lunch break is not paid.
- An employee can work a maximum of 45 hours per week based on the 9 hours of daily work.
- Any hours worked beyond the 45-hour limit are considered overtime hours.
- In Tanzania, employees can work continuously for 6 days, but the 7th day must be designated as a rest day.
- Employees are allowed to work on Sundays, but they must be given Sundaysonal pay for working on that day.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
National Social Security Fund |
Up to 10% |
– |
|
Public Service Social Security |
5% |
– |
|
Skills and Development Levy |
– |
– |
|
Workers Compensation Fund |
– |
– |
|
Property Tax |
– |
– |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
National Social Security Fund |
Up to 20% |
– |
|
Public Service Social Security |
15% |
– |
|
Skills and Development Levy |
4% |
Minimum of 10 employees |
|
Workers Compensation Fund |
0.5% |
– |
|
Property Tax |
– |
– |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
National Social Security Fund |
Up to 10% |
Up to 10% |
|
Public Service Social Security |
15% |
5% |
|
Skills and Development Levy |
4% |
– |
|
Workers Compensation Fund |
0.5% |
– |
|
Property Tax |
– |
– |
What is the Maternity and Paternity policy within Tanzania:
Maternal leave:
- entitled to 84 days during one leave cycle. Where the employee is breastfeeding the employer must allow time off not exceeding two hours to feed the baby during working hours.
- male employee is entitled to 3 paid days of leave in one leave cycle
What type of leave is allowed in Tanzania:
Annual leave
- not less than 28 consecutive days during one leave cycle of 12 months of consecutive employment. This leave is inclusive of public holidays
- employee is entitled to 126 days during one leave cycle. Medical certificate must be provided.
- Employee is entitled to full wages during the first 63 days of sick leave
- For the second 63 days the employee is entitled to half wages
- Employee is entitled to 4 paid days of leave in one leave cycle in the event of death or sickness of the employee’s child, spouse, parent, grandparent, grandchild, or sibling.
