TANZANIA
Payroll Outsourcing
Pay Your Talents in Tanzania Compliantly.
Pay Your Team in Tanzania. On Time. Everytime.
Ensure your team in Tanzania is paid accurately and on time with our Payroll Outsourcing services.
Gain expert support to keep your operations fully compliant with Tanzania's Labour Code and tax regulations.
- Pay anyone in Tanzania - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Tanzania.
Flexible Payroll Solutions in Tanzania
Payroll solutions that adapt to your needs whether you are established or growing in Tanzania.
Tanzania Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Tanzania and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes - manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Tanzania
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Tanzania legislation at all times.
Tanzania Country Overview
Geographic location: Tanzania is the second largest country in East Africa. Located right on the Indian Ocean coast, Dar es Salaam is the country’s largest city and its most important commercial and financial hub.
Population: Tanzania’s population is equivalent to 0.77% of the world’s total population. The population density in the country is estimated at around 67 per Km2 (175 people per mi2).
Economy: Over the last few years, Tanzania has maintained high growth rates thanks to a good political environment and favourable macroeconomic policies. Despite the fact that the pandemic did not spare its economy, it still fares relatively well when compared to its neighbouring countries, with increased electricity generation, private sector credit, exports and telecommunications among others.
Payroll in Tanzania - What You Should Know
Country Profile - Tanzania
Population: 68,560,000
Gross Domestic Product (GDP): $85.4 billion
GDP Growth: 5.4%
Inflation, consumer prices: 3.8%
Foreign Direct Investment (% of GDP): ~2.8%
Unemployment Rate: 2.6%
Capital: Dodoma
Currency: Tanzanian shilling (TZS)
Languages: Swahili and English (official), with over 120 indigenous languages including Sukuma, Chaga, Haya, Nyakyusa, and Hehe
Social Security Contributions
Employer Contribution
- 10% of the employee's gross salary must be contributed to the National Social Security Fund (NSSF) or another approved pension fund.
- Employers contribute to the Workers Compensation Fund (WCF) at 0.5% of the employee's gross monthly wage for most private-sector employers.
- Skills Development Levy (SDL) is payable by employers at 3.5% of gross emoluments for applicable businesses.
Employee Contribution
- 10% of the employee's gross salary must be contributed to the National Social Security Fund (NSSF) or another approved pension fund.
Consumption Taxes
- Value-added tax (VAT)
The standard VAT rate is 18%.
Working Hours and Employee Benefits
Paid Time-Off
Employees are generally entitled to 28 days of paid annual leave – inclusive of any public holidays that may fall during the period of leave.
Sick Leave
According to the Employment and Labour Relations Act 2004, workers in Tanzania that are certified by a doctor are entitled to paid sick leave for a period of 126 days in a leave cycle of 36 months.
Maternity Leave
In Tanzania, women are entitled to at least 12 weeks of paid maternity leave or 100 days in case of multiple births within a leave cycle of 36 months.
In case a new-born does not survive birth, the employee is still entitled to 84 days of paid maternity leave.
Paternity Leave
According to the Employment and Labour Relations Act 2004, men in Tanzania are entitled to at least 3 days of paid paternity leave to be taken within 7 days of the child’s birth.
The employer can enquire reasonable proof before providing the paid leave.
Termination in Tanzania
- An employee in Tanzania is only entitled to severance pay if they completed at least 1 full year of continuous service.
- Severance pay in Tanzania is equal to at least 7 days’ basic wage for each completed year of employment up to a maximum of ten years.
Severance Pay in Tanzania
There is no statutory severance pay in Nigeria.
Public Holidays in Tanzania
- New Year’s Day
- Revolution Day
- Karume Day
- Good Friday
- Easter Monday
- Union Day
- Labor Day
- Eid al-Fitr
- Saba Saba Day
- Nane Nane Day
- Nyerere Day
- Prophet’s Birthday
- Tanzania Independence Day
- Christmas Day
- Boxing Day
While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.
Seeking a Reliable Payroll Partner in Tanzania?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Tanzania's labour Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Value of Payrolls Processed Annually
Payslips Issued Annually
Payrolls Process Annually
Trusted by Inspiring Changemakers
Africa HR Solutions is for us everything what we have hoped for. Customer- and people oriented, fast and always willing to think along and find the best possible solution. We get professional services and an exceptional single point of contact.
Africa HR Solutions has been a great partner to our organisation, allowing us to quickly expand and operate in new markets while they flag and support management of compliance and risk issues. We now use Africa HR for support in some capacity in 8 of our geographic locations.
We really valued how quickly Africa HR set up an operational platform for our programme in Tanzania. The team were responsive over Teams and email and provided clear guidance on local employment requirements, which helped us structure delivery quickly and with confidence.
Africa HR is responsive, proactive, and accommodating, even with the time difference. In fact, it works in my favour - they have time to handle tasks before I start my day. Our payroll, especially in Senegal, is complex, but their attention to detail and willingness to go the extra mile definitely stand out.
Africa HR has taken the stress out of compliance - we no longer have to worry about changing regulations. Their team is professional, knowledgeable, and always available. Payroll runs smoothly, which saves us valuable time and our staff appreciates being paid on time! Kudos to the team!
Simplify and manage your team's payroll in Tanzania
From Dar es Salaam to Arusha, your payroll in Tanzania is streamlined with compliant PAYE, NSSF contributions, and timely pay.
Frequently Asked Questions
What is payroll outsourcing?
Payroll outsourcing is when a specialist partner manages salary calculations, tax deductions, and statutory filings on your behalf. This ensures employees are paid correctly and on time while keeping your business compliant with local laws.
How does tax outsourcing work?
Tax outsourcing covers the preparation, filing, and payment of employee and employer-related taxes. It reduces the risk of errors, missed deadlines, or penalties by ensuring all contributions are handled according to local regulations.
Why should I outsource payroll and tax in Africa?
Africa’s employment laws and tax frameworks differ from country to country. Outsourcing ensures compliance, saves administrative time, and avoids costly mistakes while giving you access to local expertise in multiple jurisdictions.
Can you manage payroll for both local and expatriate employees?
Yes. We manage payroll for both local hires and expatriates, including handling multi-currency payments, cross-border compliance, and special tax considerations.
How do you ensure compliance with local laws?
Our experts stay updated with labour codes, tax rates, and social contribution requirements in each country. We file directly with authorities, ensuring your business remains compliant at all times.
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