The Minister of State, Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability) Hon. Prof. Joyce Lazaro Ndalichako (MP), has published Government Gazette No. 687 on the 25/11/2022 as required by the Labour Institutions Act Cap 300 R.E 2019. The New Wage Order is effective as of 1st January 2023. It subsequently revoked the Wage Order previously published under GN NO. 196 of 2013.
A few implications to employer in Tanzania brought about by the new wage order are as follows:
- Minimum wage for each sector is provided by the Order and an employer shall not pay below the minimum prescribed wage but can obviously pay more than the minimum wage.
- Employers are now required to adjust payment of their wages below the minimum wage prescribed to conform to the new minimum wage for proper compliance.
- Employee are now entitled to leave travel assistance once in every two years of continuous service with the same employer. This is in addition to any other allowance agreed between the employer and the employee.
- Lorry drivers shall be paid an allowance for the distance travelled, out of duty station allowance, allowance for loading and unloading cargo at rates agreed between the employer and the lorry drivers.
- Any employer paying higher wages and providing more favorable terms and conditions of employment before this New Wage order should maintain them and continue to strive to provide even better terms to his employees.
- Any employment sector not mentioned is required to pay its employees a minimum of TZS 150,000/= per month.
Sector minimum wages as per the Order are as follows in brief
1. Agriculture Sector TZS 140,000/=
2. Health Sector TZS 195,000/=
3. Communication Sector is divided into two sub-sectors:
i. Telecommunication TZS 500,000/=
ii. Broadcasting and Mass Media, Postal and Courier Services TZS 225,000/=
4. Domestic and Hospitality Services Sector
i. Domestic workers employed by Diplomats and Businessmen TZS 250,000/=
ii. Domestic workers employed by entitled officers TZS 250,000/=
iii. Domestic workers other than those employed by diplomats and businessmen and entitled officers who are not residing in the household of the employer TZS 120,000/=
iv. Other domestic workers TZS 60,000
v. Large Tourist hotels TZS 300,000
vi. Medium Hotels Tshs 180,000
vii. Restaurants, Guest Houses and Bars TZS 150,000
5. Private Security Services Sector
i. International and Large companies TZS 222,000/=
ii. Small Companies TZS 148,000/=
6. Energy Sector
i. International Companies TZS 592,000/=
ii. Small Companies TZS 225,000/=
7. Transport Sector
i. Aviation Services TZS 390,000/=
ii. Clearing and Forwarding TZS 360,000/=
iii. Inland (Ground) Transport services TZS 300,000/=
8. Construction Sector
i. Contractors Class 1 TZS 420,000/=
ii. Contractors Class 2-4 TZS 360,000/=
iii. Contractors Class 5-7 TZS 320,000/=
9. Mining Sector
i. Mining and Prospecting Licences TZS 500,000/=
ii. Primary Licences TZS 300,000/=
iii. Dealers Licences TZS 450,000/=
iv. Brokers Licences TZS 250,000/=
10. Private Schools Services (Nursery, Primary and Secondary) TZS 207,000/=
11. Trade, Industries and Commercial Sector
i. Industries and Manufacturers TZS 150,000/=
ii. Financial Institutions TZS 592,000/=
12. Fishing and Marine Sector TZS 238,000/=
13. Employer who are in other sectors not mentioned in this Wage Order TZS 150,000/=
Please note that the above is merely for guidance and proper interpretation of the Order should be found in the Order for your further reference which you can down load here.