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Tanzania EOR & PEO

SALARY PAYMENT IN Tanzanian Shilling (TZS)

CONTRACT LANGUAGE English & Swahili

PAYROLL TAX 20.00%

PAYROLL CYCLE Weekly or monthly

TIME TO HIRE 24 hours

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Hire in Tanzania

Horizons enables any business, anywhere in the world, to easily hire employees in Tanzania — in compliance with local tax and labor laws. The Horizons Tanzania EOR solution enables your company to hire a Tanzania-based team, without the need for a local entity or subsidiary.

When you engage a Tanzania EOR, you save your business time and money, and guarantee compliance.

Note, a Tanzania Employer of Record is also known as a Tanzania Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Tanzania , and pay employees through our platform or app.

EOR Cost

Our Tanzania EOR solution is the most affordable on the market.

Time-to-hire

Fast Tanzania onboarding, hire in as little as 24 hours.

Contracts

We draft compliant Tanzania labor contracts.

Local benefits

We manage all mandatory & optional Tanzania benefits, including health insurance.

180+ Countries

It doesn’t stop with Tanzania — we hire employees globally.

stay compliant with Tanzania labor laws

What is a Tanzania EOR?

An Employer of Record (EOR) is a company that provides HR services to businesses, including payroll, benefits, compliance, and HR administration. A Tanzania EOR is an organization that provides these HR services to businesses that are looking to hire employees in Tanzania.

The orgnization could be a domestic EOR, only supporting based in Tanzania and only hiring and processing payroll in Tanzania. Or they could be a Global EOR, supporting companies hiring employees all over the world, including in Tanzania. 

Tanzania is an ideal location for many international companies seeking to hire in Africa. It is one of the most prosperous countries in Africa, with a population of 60 million, and rated the second most popular African location for wildlife tourism. 

EORs can support international companies that want to hire employees in Tanzania by taking over the HR, payroll and compliance tasks and responsibilities that come with Tanzania employment. This helps international companies focus on expanding into a new African market, or simply getting the best out of their Tanzania-based team. 

What are the benefits of a Tanzania EOR?

There are several potential benefits of using a Employer of Record  (EOR) in Tanzania:

  • Cost savings—By engaging a EOR for your HR and payroll you save  on the cost of hiring and training in-house HR and payroll staff.
  • Improved compliance—Through Tanzania legal and employment experts, Horizons ensures companies avoid fines and other legal issues.
  • Local expertiseThrough HR professionals with Tanzania expertise, a Tanzania EOR benefits businesses that don’t have the resources to hire an entirely in-house HR team.
  • Enhanced flexibility—EORs can provide HR, payroll and compliance services on an ‘a la carte‘ and as-needed basis. For example, if the business needs support with Tanzania visas, a EOR may be able to help with that as well.
  • Better employee benefitsEORs generally have existing relationships with benefit providers and economies of scale which allow them to negotiate better benefit rates than a company could themselves.

It is worth noting that the specific benefits of a Tanzania EOR will depend on the services they offer and the needs of the business.

How does a Tanzania EOR help businesses hire employees?

EORs in Tanzania can support businesses in a number of ways. This includes:

  • Guiding companies on local labor laws and regulations: This is particularly true of international businesses who are likely unfamiliar with local laws. 

  • Assisting with recruitment: Many top EORs offer recruitment supporting including advertising jobs, reviewing applications and carrying out initial interviews. 

  • Handling onboarding and orientation: Tanzania EORs support companies in Tanzania by setting up payroll, and providing new hires with all the necessary information to begin work. 

  • Administering employee benefits: EORs can design and implement employee benefit plans, including health insurance and retirement plans, and administer those benefits on behalf of client companies. 

  • Managing payroll and tax withholding: EORs handle the calculation and issuing of salaries and wages, the withholding of taxes, and making required tax payments on behalf of the business.

Leave management and national holidays in Tanzania

A Tanzania EOR can administer benefits for all your Tanzania-based staff. This includes leave management, pensions, healthcare and various social contributions. 

When it comes to paid time off (PTO) employees in Tanzania received 21 days paid annual leave. In addition to this are several paid national holidays in Tanzania. These are: 

Tanzania has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan MondayNew Year’s Day
12 Jan FridayZanzibar Revolution Day
29 Mar FridayGood Friday
1 Apr MondayEaster Monday
7 Apr FridayKarume Day
10 Apr WednesdayEid el Fitri (Tentative Date)
11 Apr ThursdayEid el Fitri Holiday (Tentative Date)
26 Apr FridayUnion Day
1 May WednesdayWorker’s Day
17 Jun MondayEid al-Adha (Tentative Date)
7 Jul SundaySaba Saba
8 Aug ThursdayFarmers’ Day
16 Sep MondayMaulid (Tentative Date)
14 Oct MondayMwalimu Nyerere Day
9 Dec Monday

Republic Day

25 Dec WednesdayChristmas Day
26 Dec ThursdayBoxing Day

Note also that there are some regional or local holidays that are only celebrated in certain parts of Tanzania.

Paternity and Maternity leave in Tanzania

The parental and maternity leave requirements in Tanzania are outlined in the Employment and Labor Relations Act 2004. This provides that female employees are entitled to a minimum of 90 days of maternity leave. This covers leave both before and after delivery. Male employees have an entitlement of at least 14 days of paternity leave.

During paid maternity or paternity leave, all employees are entitled to receive their full salary or wages.

In addition to the statutory minimum leave entitlements, some employers in Tanzania offer additional leave or benefits to those seeking to take parental leave.

Employer pension contributions in Tanzania

Under the National Social Security Fund Act (NSSF) employers and employees are required to make compulsory contributions to this fund.  The NSSF provides retirement benefits, survivor benefits, and disability benefits to all employees, except those covered by other schemes.

Employers are required to pay 10 percent of gross salary/wages into this fund, while employees are also required to pay 10 percent, resulting in a total contribution of 20 percent. A failure to make the required employer contributions, or withhold the required employee contributions on their behalf can result in fines and penalties.

Income tax withholding in Tanzania

PAYE (Pay As You Earn) is Tanzania system of employee income tax withholding, administered by the Tanzania Revenue Authority (TRA). Under the PAYE system, employers are required to deduct income tax from their employees’ salaries or wages on a monthly basis and remit the tax to the TRA.

The PAYE tax rates in Tanzania are progressive, ensuring that the tax rate increases as an employee’s taxable income increases. The tax rates for the current tax year (2022/23) are as follows:

  • Up to TZS 1,440,000 (approx. USD 617): 0%
  • TZS 1,440,001 to TZS 2,160,000 (approx. USD 926): 10%
  • TZS 2,160,001 to TZS 2,880,000 (approx. USD 1,235): 15%
  • TZS 2,880,001 to TZS 3,600,000 (approx. USD 1,543): 20%
  • TZS 3,600,001 and above: 30%

Employees may be eligible for a tax credit, also known as a personal allowance, which is a deduction from their taxable income. The tax credit for the current tax year (2022/23) is TZS 480,000 (approx. USD 205).

Note, it is important that employers correctly withholding and remit PAYE in order to protect themselves from serious fines or other regulatory action from the TRA. 

Healthcare and health insurance in Tanzania

In Tanzania, there is no legal requirement for employers to provide health insurance to their employees, though employers may offer it voluntarily. note however, that as part of the NSSF, limited health benefits are available. 

Note also that employees may be able to access insurance through the National Health Insurance Fund (NHIF) — a statutory body that provides health insurance to workers in Tanzania who are not covered by an employer-provided plan. Currently, contributions to this fund are required for some employees (e.g. public sector) but not all. 

Hire through a Tanzania EOR

Tanzania Employer of Record (EOR) solutions take the stress out of hiring employees in Tanzania.  Through a EOR solution, any company, anywhere in the world can hire employees in Tanzania, quicky and cost-effectively. 

Hire in Tanzania in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Tanzania PEO” and “Tanzania EOR” are used interchangeably.

A Tanzania EOR is a good option for international businesses that seek to hire and pay employees in Tanzania in full compliance with tax and labor laws. 

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