Employer of Record in Tanzania

Looking to grow your company in Tanzania’s quickly growing economy? Without needing you to set up a branch office or subsidiary in the nation, our EOR solutions are here to help. Your business may effortlessly administer payroll, handle HR taxes, and adhere to other legal standards in Tanzania with the help of our all-inclusive solutions. Profit from the fantastic potential offered by the African industry and speak with our specialists about how we can customise our EOR solutions to your unique requirements.

Overview of Tanzania

• Population: 61,361,249 (2021 estimates)
• Currency: Tanzanian shilling
• Capital City: Dodoma
• Languages spoken: The majority of the people speak Swahili and English.
• GDP: 65.92 (In billion US Dollars)

Employment Landscape in Tanzania

For any firm, navigating Tanzania’s complicated employment rules and recruiting procedures may be a challenging endeavour. When establishing a local organisation in Tanzania, it is essential for businesses to be cautious in following labour laws because there are severe consequences for non-compliance. Finding the ideal candidate for each particular position might be difficult due to the recruiting process’s increased complexity as a result of tax rules, legal requirements, and social insurance conventions. New company organisations can turn to PEOs or EORs, who can manage payroll and other compliance-related responsibilities, to lessen the burden of these legal obligations. Companies may assure efficient and trouble-free operation when it comes to recruiting, payroll, and employee termination in Tanzania by collaborating with these organisations.

Entitlements	Explanations
Statutory Working Hours	Employees that are full-time can put in 9 hours every day. The lunch break of one hour is not included in the nine hours of labour. Only if the person works continuously for five hours is a lunch break allowed. Lunchtime is not compensated. An employee is allowed to work a maximum of 45 hours per week, which equates to nine hours each day of labour. Anything above 45 hours must be paid as overtime.   In Tanzania, a worker may work continuously for six days, but the seventh day must be a day off.
Working on Sundays	If offered Sundaysonal pay, workers are permitted to labor on Sundays.
Paid Public Holidays	January 1: New Year’s Day January 12: Zanzibar Revolution Day April 2: Good Friday April 5: Easter Monday April 26: Union Day May 1: Labor Day May 13 to May 14: Eid al-Fitr July 7: Saba Saba July 20: Eid al-Adha August 8: Nane Nane (Farmer’s Day) October 14: Nyerere Day October 18: Milad-un-Nabi December 9: Independence & Republic Day December 25: Christmas Day December 26: Boxing day
Medical Leave	A worker is permitted 126 days of medical leave over the course of 18 months.
Maternity leave in Tanzania	Female employees in Tanzania are entitled to fully compensated maternity leave under the Employment and Labor Relations Act of 2004 for a duration of 12 weeks, or 100 consecutive days in the case of multiple births, within a leave cycle of 36 months. Employees who are pregnant must submit a medical certification to their employer at least three months before beginning maternity leave in order to be eligible for this benefit. Additionally, female employees must wait six weeks after giving birth before returning to work without a doctor’s note. Employees are entitled to a maximum of four paid maternity leaves from their employers over their entire employment relationship. These rules guarantee that female workers in Tanzania have access to sufficient time off and assistance during pregnancy and delivery, encouraging working moms to maintain a good work-life balance.
Annual Leave Accrual Entitlement	Employees with fewer than six months of work are not eligible for paid leave under the rules of the Employer and Labor Relations Act (2004).

Disclosure and Confidentiality of Personal Information

To safeguard the interests of the business and its employees, employers in Tanzania are permitted to withhold some categories of information. A violation of the law or a court order would occur if certain information were exposed, such as information that is legally protected, private information about an employee without their agreement, or information that if published would violate certain laws. Employers may also decide to withhold sensitive information if doing so may result in serious consequences for either the employee or the company. Due to these safeguards, sensitive data is kept secure and employees’ privacy rights are upheld. Employers must carefully strike a balance between their need for privacy and the law’s demands for openness and transparency at work.

Contractors Vs Fixed-term employees

The kind of employee needed depends on the nature of the corporate organisation. Depending on their particular needs, employers might decide whether to hire full-time staff or contractors. Our organisation, a top worldwide HR agency, specialises in helping companies locate the best individuals to fill open positions in their workforces. With years of expertise, we have created an all-encompassing EOR system that handles all recruiting procedures, payroll administration, tax preparation, and regulatory compliance on the employer’s behalf. Regardless of whether your business wants full-time workers or contractors, we have the experience to suit your unique employment requirements. Count on us to take care of your HR needs so that your company may succeed by assembling the ideal team.

Hiring in Tanzania

In order to hire the ideal employee in Tanzania, it is important to carefully assess the job opening and comprehend the demands of the company.  We are aware of how crucial it is to find the best applicant for a job, and that process starts with a clear job role description. Prior to applying, interested candidates should have a comprehensive knowledge of the position being offered thanks to the exact job descriptions that our professional staff creates.

Once the job description is complete, we create a recruiting strategy and choose the most qualified applicants for the position. We have thorough interviews to make sure we select the best applicant for the position. The process of expanding into a new nation may be challenging and demanding in a number of areas, including sales, company operations, and human resources-related issues. An EOR service may be quite helpful in this situation by saving you time, effort, and resources. Let us take care of your HR requirements and assist you in hiring the best candidates to advance your company.

Hiring in Tanzania

• Employment contract: Employers can choose from three different contract kinds when hiring workers: an undefined amount of time, a particular job, and a fixed duration of time. A contract with a specific period is for a predetermined amount of time, which can be anything from one month to several years. The agreement ends automatically once the allotted time has passed. A specific task contract is for a single project or work, and it expires after the project or assignment is finished. A perpetual contract, also known as an unspecified time contract, has no set end date and lasts until it is terminated by either the employee or the employer. The kind of contract a company chooses will depend on the project’s scope and duration.

• Basic content of the employment contract: Name, permanent residence, gender, age, and other pertinent details about the job connection will all be included in the contract. Additionally, the location of hiring and the job description will be made explicit. It will also expressly identify the start date of the work connection, the length of the contract, and its format.

  The contract will specify the place of employment as well as the working hours. The agreed upon salary, the methods of computation, and the specifics of any perks or payments in kind will all be set down in the agreement.

  To enhance clarity and openness between the parties, any additional required subject that is pertinent to the work relationship shall be addressed in the contract.

• Tax authority – to be informed:Within three months of the start of the accounting period, a statement of expected tax payable that includes an estimate of the chargeable income and the tax payable is required. Within six months following the conclusion of the accounting period, a final tax return must be filed.

  Taxes can be paid in four equal payments, each of which must be made no later than three, six, nine, and twelve months after the start of the accounting period.

• Employer should inform the employee about necessary details: Employers are required to provide written notice to all workers of the fundamental terms of employment, such as working hours, pay scales, leave policies, and contract termination.

  The employer must provide the employee with all pertinent information on the job in writing, together with all the terms and conditions, as well as any dos and don’ts linked to the employment. The onus of keeping the employee well-informed about all facets of work is with the employer.

• Medical Examination: Before accepting a job offer or before employment starts, employers in Tanzania may need potential workers to go through a medical test. The practice of employers requiring newly recruited employees to submit to medical testing is arbitrary, out of proportion, and in violation of both the constitutional right to privacy and well-established data protection norms.

Fixed-term employment in Tanzania 

Both the employer and the employee are able to sign a contract for a set amount of time under the 2004 Employment and Labor Relations Act. A fixed-term employment contract must have a minimum duration of twelve months under this act’s Regulation 11.

Tanzanian law prohibits hiring workers on fixed-term contracts with a tenure of less than a year. It is regarded as a crime under Tanzanian law. Any individual who violates Regulation 35 of the General Regulations may face a fine of up to one million shillings, a year in jail, or both, depending on the severity of their offence.

Probation Period

As a result, the Employment and Labor Relations Act of 2004 makes no explicit or regulatory mention of probationary periods. To avoid a situation where a worker with less than six months of employment files an unjust termination claim against the employer, this legislation permits a probationary period of six months. You may save time, effort, and resources by using an EOR service.

Termination of employment

The employment contract may be ended with advance notice, but the notice must last at least seven days. The common law allows for the rightful termination of an employee in a number of situations, including:

• Termination by mutual consent: When the employer and employee both concur to terminate the employment relationship in accordance with the terms of a written agreement, the employment relationship is terminated. If the contract has a time limit, it will expire when that limit has passed.
• Automatic termination: The employment contract is automatically ended in extraordinary circumstances, such as the death of the employer or the failure of the firm.
• Resignation: If the employer violates the terms of the contract, the employee may choose to leave their position.

Tanzanian law mandates that employees get terminal compensation when their job ends. The amount included in profits cannot be greater than what the employee would have gotten for the remaining time under the contract, provided the contract has a set duration. This sum is thought to have accumulated gradually throughout the course of the contract’s remaining time.

If the contract has an ambiguous term and offers pay upon termination, the compensation will start to accumulate right away at a rate equivalent to the profits from the contract that were obtained before termination.

Any compensation provided to the employee upon termination must be assumed to have accumulated in the period immediately after termination at a rate equal to the rate per annum of the gains if the contract is for an undefined duration and does not provide for compensation upon termination. However, this compensation cannot be greater than three years’ worth of an employee’s salary at the rate the company has chosen.

EOR Solution in Tanzania

Tanzania’s EOR Solution is a commercial solution created to help businesses extend their operations there. Employer of record and payroll services are provided by our team of qualified experts, and these are crucial for businesses looking to expand in Tanzania. Additionally, businesses may locate and recruit the best individuals for their needs by using our specialised HR platform.

Our employer of record services aid businesses in navigating Tanzania’s challenging legal and regulatory framework. We take on responsibilities such as payroll, tax compliance, and benefit administration as the official employer of record for your employees. This enables you to concentrate on your primary business operations while making sure that your staff is taken care of.

We offer payroll services to make sure that your employees are paid promptly and properly. From calculating taxes and deductions to creating payslips and submitting payroll taxes to the appropriate authorities, we handle every element of payroll processing.

You may locate and employ the best people for your company using our HR platform. We provide you access to a talent pool of experts, and our hiring procedure is made to assist you in finding the ideal people for your company.

We are dedicated to assisting our clients in Tanzania’s changing business climate at EOR Solution.

Outsourcing Employment through an employer of record

There are various ways for a company to find team members that meet the needs of the position. If an organisation wants to grow their business internationally, they may either hire an EOR or form their own recruiting team. EOR solutions may assist in managing employee payroll while also ensuring that all tax and employment requirements are followed.

International clients may be employed by an employer of record service.

Types of Visas in Tanzania

Tanzania Tourist/ Ordinary visa	The issuance of this visa is permitted by all Tanzanian embassies. It grants permission for visitors to travel to specific places in Tanzania.
Tourist visa	If you are visiting Tanzania for a short vacation, you must have this visa.
Tanzania Business Visa	Tanzania issues business visas to those who want to travel there to make commercial and professional relationships as well as to people who are setting up investments in Tanzania during their beginning phase. This sort of visa’s duration might be anything between one and six months. This visa’s cost is decided administratively.
Tanzania Multiple-Entry Visa	Those who must go to Tanzania frequently are granted this sort of visa.
Tanzania Transit Visa	People who desire to travel through Tanzania while in another country are granted this form of visa.
Tanzania Referred Visas	For this visa, special authorization and clearance are needed. The approval or permit for this visa may be given by the Director of Immigration Services and the Principal Immigration Officer in Dar es Salaam and Zanzibar, respectively.

Work Permit in Tanzania

The proper work and residency permits must be obtained if you are a foreign national seeking to work in Tanzania. The Tanzanian government also issues three types of work and residency permits in addition to the visa requirement.

The Class A permit is only available to foreign investors who wish to create a new company in Tanzania or make an investment in one that already exists. This licence aims to promote economic growth and attract international investment.

Foreign workers with specific talents who are filling a post for which there are no qualified workers in Tanzania are granted the Class B permit. Most workers who want to work in Tanzania require this permission, which has a two-year maximum validity.

Missionaries, volunteers, students, researchers, and other organisations planning to work or live in Tanzania for a brief time are granted the Class C permission. This permit is intended to serve visitors who are in Tanzania temporarily for job or school.

In general, you must get the necessary work and residency permissions if you intend to work in Tanzania. The majority of workers will need to apply for and submit onerous paperwork for a Class B work permit. However, you might have a rewarding and successful work experience in Tanzania if you satisfy the standards and acquire the required permits.

Processing time of work permit

A work permit has a 24-month validity period and can be extended for a total of 60 months.

Obtaining a work permit takes roughly two months after the application is submitted to the appropriate authorities.

Things you must know to set up payroll in Tanzania

Due to intense market rivalry, starting a profitable business in Tanzania can be tough. However, businesses can accomplish their objectives with careful preparation and respect to regional laws. The correct team in place is a crucial element of success.

Companies may collaborate with a global payroll provider like ours to discover the finest people. We are able to assist businesses in locating and hiring the best people available worldwide because of our broad expertise and international contacts. From locating applicants to holding interviews and running background checks, our staff can handle the full employment process.

For companies doing business in Tanzania, our organisation may offer comprehensive payroll services in addition to recruiting. We can streamline payroll procedures, assure adherence to regional tax and employment rules, and pay staff members accurately and on time.

Businesses who work with us may concentrate on their core competencies while we take care of their hiring and payroll requirements. Businesses may achieve their objectives and prosper in the cutthroat Tanzanian market with the aid of our international contacts and knowledge.

Taxes in Tanzania

For residents, the highest marginal tax rate that is cost-effective is 30%. On their employment income, nonresidents must pay tax at a fixed rate of 15%. To speed up your growth and comprehend how payroll and taxes are handled in Tanzania

Employee Payable

Grossed Income	Tax Rate (%)
Up to TZS 1,620,000	0%
TZS 1,620,001 – TZS 4,320,000	14%
TZS 4,320,001 – TZS 6,480,000	20%
TZS 6,480,001 – TZS 8,640,000	25%
Over TZS 8,640,001	30%

Incorporation: How to set up a subsidiary in Tanzania

Our organisation provides a comprehensive solution that simplifies the process of starting a new business for entrepreneurs and companies wishing to grow into Tanzania. Our staff is there to support you at every stage of the process since we are fully aware of the difficulties and complexity involved in establishing a subsidiary in a foreign nation.

Our service includes assisting companies in hiring the ideal personnel for their new enterprise. We can support firms with hiring, screening, and onboarding so that they have a capable and committed workforce in place from day one. Our mission is to offer the greatest people at fair prices, assisting companies in maximising productivity and success.

Our business not only manages the employment procedure but also all the required documentation and regulatory standards. We know how crucial it is to fulfil deadlines and abide by local laws, and our crew is skilled enough to handle these difficulties with ease.

Businesses may concentrate on their core activities and leave the administrative issues to us by using our EOR services. For each customer, we provide a specialised solution based on their unique requirements and objectives. Get in contact with our experts right now to find out more about how we can assist you in starting a profitable business in Tanzania.