EOR Service in Tanzania

Hire, Onboard and Pay Employees in Tanzania Quickly and Efficiently

Hiring in Tanzania at a glance

CURRENCY
Tanzanian Shilling (TZS)
working hours
45 hours/ week.
public/bank holidays
15
capital
Dodoma
language
Swahili and English
date format
mm/dd/yyyy
remote workers
1.2M
tax year
1 July - 30 June
minimum hourly salary
No minimum wage
CURRENCY
Tanzanian Shilling (TZS)
working hours
45 hours/ week.
public/bank holidays
15
capital
Dodoma
language
Swahili and English
date format
mm/dd/yyyy
tax year
1 July - 30 June
payroll frequency
Monthly
GDP
$75.71B (2022)

Employer of Record in Tanzania

Tanzania's lower-middle-income economy has sustained significant growth, notably in its 4% annual expansion of the agricultural sector. This economic success is reinforced by active industry, strategic geography, and abundant natural resources. As an Employer of Record in Tanzania, you can leverage these factors to establish a strong presence and capitalize on the nation's thriving business environment.

Why use Tanzania EOR?

Opting for a Tanzania Employer of Record (EOR) or Professional Employer Organization (PEO) provides employers with a streamlined solution for local employment complexities. There are various process around setting up an entity in the country that are quite different from other countries. General aspect such as registration fees, business name registration, licence and permit fees, legal consulting fees, minimum capital requirements, office space, employee costs, insurance, and miscellaneous Costs that require a lot of understanding and effort. Working with an EOR ensures compliance with Tanzanian labor laws, alleviates administrative burdens, and taps into local expertise, reducing risks in HR management. With the EOR/PEO managing payroll, taxes, and compliance, employers can swiftly enter the market, efficiently scale their workforce, and focus on core operations, fostering operational efficiency and workforce management flexibility.

EOR Costs in Tanzania

Tanzania EOR/PEO pricing is determined by service packages, covering payroll, tax compliance, and benefits administration. Costs vary based on factors like business size, industry, and specific service needs. Transparent and tailored pricing discussions with providers are essential for aligning with the business requirements in the Tanzanian market.

Key Metrics For Foreign Employers 

Here are a few factors for you to consider before considering hiring in Tanzania.

Factors Global Ranking Interpretation
Rule of law 96 Indicates effectiveness of law enforcement
Labour-employer cooperation 71 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 76 Indicates average QS rankings
Labour productivity per employee 107 Indicates total output by the total labour input used to produce that output
Ease of finding skilled employees 42 Indicates findability of skilled talent
Workforce with tertiary education 131 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Tanzania.

Why work in Tanzania ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

In Tanzania, the risks of misclassifying employees can result in substantial legal implications, jeopardizing essential legal protections. Opting for a PEO/EOR presents a proactive strategy to mitigate these risks, guaranteeing thorough compliance, accurate employee classification, and comprehensive benefits administration. Collaborating with seasoned professionals enables businesses to focus on their core operations confidently, as employment responsibilities are handled in accordance with Tanzanian regulations. This not only ensures legal compliance but also safeguards the workforce's well-being.

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Employing in Tanzania

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer

Category Contribution Rate
Skills Development Levy 4.00%
Workers Compensation Fund 1.00%
Workers Compensation Fund 10.00%
Total Employment Cost 15.00%

Employee

Category Contribution Rate
National Social Security Fund 10.00%
Higher Education Student Loan Board When applicable
Total Employee Cost 10.00%

Employee Income tax

Mainland :
Rate Contribution
0.00% 0.00 TZS-270,000 TZS
9.00% 270,001.00 TZS- 520,000.00 TZS
20.00% on the excess of 520,001 TZS + 22,500.00 TZS 520,001.00 TZS-760,000.00 TZS
25.00% on the excess of 760,001 + 70,500.00 TZS 760,001.00 TZS- 1,000,000.00 TZS
30.00% on the excess of 1,000,001.00 TZS + 130,500.00 TZS 1,00,001.00 TZS and over
Zanzibar:
0.00% 0.00 TZS- 180,000.00 TZS
9.00% 180,001 TZS– 360,000 TZS
20.00% on the excess of 180,001 TZS + 16,200 TZS 360,001 TZS- 540,000 TZS
25.00% on the excess of 360,001 TZS + 52,200 TZS 540,001 TZS + 720,000 TZS
30.00% on the excess of 720,001 TZS + 97,200 TZS 720,000 TZS and over

Separation

Termination 

In Tanzania, termination requires the issuance of written notice, specifying the grounds for termination and the effective termination date.

Severance Pay

To qualify for severance pay, the employee needs a minimum tenure of 12 months. Severance pay is calculated at the rate of seven days' pay for each year of employment and is capped at a maximum of 10 years.

Notice Period

In the initial month of employment, a notice period of 7 days is required. For employees engaged on a daily or weekly basis, a notice period of 4 days is applicable, while those employed on a monthly basis are subject to a 28-day notice. Alternatively, payment in lieu of notice is also an option.

Probation period

While Tanzanian law does not specify a probation period, it does establish that an employee cannot legally assert unfair dismissal if terminated within the initial 6 months of employment.

Start Hiring in Tanzania today

Our commitment is to provide a seamless global employment experiWhen expanding globally, ensuring compliance poses unique challenges. Employers must navigate employment laws, adhere to payroll protocols, uphold DE&I standards, comply with GDPR and data protection regulations, and more. While establishing local entities and commencing hiring can be daunting, staying abreast of a dynamic compliance landscape is even more demanding.

Gloroots streamlines this process, offering a centralized platform to manage these tasks effortlessly. Our in-house experts provide comprehensive protection against cross-border employment and payroll compliance risks. We assist in crafting employment contracts, ensuring timely payments, and delivering compliant benefits, allowing you to concentrate solely on talent screening.

ence, alleviating stress for both you and your employees.

Connect with our experts today to launch your global recruitment initiative.

Grow your team in Tanzania

Expand your team in Tanzania strategically with seamless hiring that aligns seamlessly with your business objectives. Simplify local employment intricacies through Gloroots's comprehensive Employer of Record (EOR) service. Our specialists manage compliance, payroll, tax obligations, and benefits, empowering you to concentrate on nurturing your team and driving company expansion in the vibrant Tanzanian market.

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Experience Seamless Hiring in Tanzania ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Tanzania .

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