Want to expand your business in the rapidly expanding economy of Tanzania? Marzuna EOR solutions can help without requiring you to establish a branch office or subsidiary in the country. With Marzuna’s comprehensive solutions, your company may easily manage payroll, pay HR taxes, and comply with other regulatory requirements in Tanzania. Take advantage of the tremendous potential that the African market offers and consult with our experts to see how we can tailor our EOR solutions to meet your particular needs.
Any company may find it difficult to navigate Tanzania’s intricate hiring practices and employment laws. Businesses in Tanzania must exercise caution while forming local organizations by adhering to labor rules, since non-compliance can have serious repercussions. Due to social insurance norms, legal requirements, and tax laws, the recruitment process has become more complex, making it challenging to find the best applicant for each specific post. To reduce the stress of these legal tasks, new firm organizations can turn to PEOs or EORs, who can handle payroll and other compliance-related activities. By working with these organizations, businesses may ensure smooth and effective hiring, payroll, and termination procedures for employees in Tanzania.
| 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 |
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| 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). |
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.
The type of worker required will vary depending on the organizational structure. Employers may choose to recruit full-time employees or independent contractors based on their specific needs. Our company, a leading global HR agency, specializes in assisting businesses in finding the most qualified candidates to occupy available jobs within their workforces. Our comprehensive EOR system, developed over years of experience, takes care of all hiring processes, payroll management, tax preparation, and regulatory compliance on the employer’s behalf. We have the expertise to meet your specific employment needs, whether your company prefers contractors or full-time employees. You can rely on us to handle your HR requirements so that your business may prosper by putting together the best staff possible.
The process of hiring the perfect candidate in Tanzania begins with a comprehensive understanding of the job opening and the company’s needs. We recognize the significance of finding the best fit for a role, and that process commences with a well-defined job description. Interested candidates should have a clear understanding of the position available before applying, thanks to precise job descriptions crafted by our professional team.
Once the job description is finalized, we develop a tailored recruitment strategy to identify the most qualified candidates for the role. We conduct thorough interviews to ensure the selection of the ideal candidate. Expanding into a new country can pose various challenges in areas like sales, company operations, and human resources. In such situations, an Employer of Record (EOR) service can be invaluable, saving you time, effort, and resources. Let us manage your HR needs and assist you in recruiting the best talent to advance your company.
Employment Contract Options:
When hiring employees in Tanzania, employers have three main contract types to choose from: indefinite, specific task, and fixed-term. A fixed-term contract is for a predetermined duration, which can range from one month to several years, and it automatically terminates when the specified time elapses. A specific task contract pertains to a single project or assignment and concludes upon the project’s completion. A permanent contract, also known as an indefinite time contract, has no predetermined end date and remains in effect until either the employee or employer terminates it. The choice of contract type depends on the scope and duration of the project.
Essential Contract Details:
The employment contract should include important information such as the employee’s name, permanent residence, gender, age, and other relevant personal details. It should also specify the location of employment and provide a clear job description. The contract must explicitly state the start date of the employment relationship, its duration, and format. Additionally, it should outline the workplace and working hours. The agreed-upon salary, computation methods, and details of any benefits or in-kind payments should be clearly defined in the agreement. Any other necessary subjects relevant to the employment relationship should also be addressed to ensure transparency and clarity between the parties.
Tax Compliance:
Employers are required to inform the tax authority within three months of the start of the accounting period, providing an estimate of tax payable, including chargeable income and the tax amount. Final tax returns must be filed within six months following the conclusion of the accounting period. Taxes can be paid in four equal installments, with payments due at three, six, nine, and twelve months after the start of the accounting period.
Employee Information:
Employers are obligated to provide written notice to all employees regarding fundamental employment terms, including working hours, pay scales, leave policies, and contract termination. The employer is responsible for keeping employees well-informed about all aspects of their employment, including terms, conditions, and any relevant guidelines or restrictions.
Medical Examination:
Before accepting a job offer or starting employment, employers in Tanzania may require potential employees to undergo a medical examination. However, it’s important to note that such practices are subject to scrutiny for their impact on privacy rights and data protection norms.
Fixed-Term Employment in Tanzania:
The 2004 Employment and Labor Relations Act in Tanzania allows both employers and employees to enter into fixed-term contracts. These contracts must have a minimum duration of twelve months, as specified in Regulation 11 of the act. It’s essential to be aware that Tanzanian law prohibits hiring workers on fixed-term contracts with durations of less than a year, and violations may result in legal penalties. Violation of Regulation 35 of the General Regulations can lead to fines, imprisonment, or both, depending on the severity of the offense.
In the context of Tanzania, the Employment and Labor Relations Act of 2004 does not explicitly address probationary periods in a regulatory or statutory manner. To mitigate the risk of an unjust termination claim from an employee with less than six months of service, the legislation allows for the implementation of a probationary period lasting up to six months. Employers can take advantage of this provision to save time, effort, and resources, particularly when considering employment arrangements in the country, with the assistance of an Employer of Record (EOR) service.
Termination of Employment
Under Tanzanian law, the termination of an employment contract generally requires advance notice, with a minimum notice period of seven days. The law recognizes various legitimate reasons for the lawful termination of an employment contract, including:
Tanzanian law mandates that employees are entitled to terminal compensation upon the termination of their employment. The amount of this compensation should not exceed what the employee would have earned during the remaining period of the contract if it had a fixed duration. This compensation is presumed to have been earned incrementally throughout the remaining term of the contract.
In cases where the contract has an indeterminate term and provides for compensation upon termination, the compensation begins to accrue immediately at a rate equal to the earnings from the contract that were obtained prior to termination.
If the employment contract does not specify compensation upon termination and is for an indefinite duration, the compensation is assumed to accrue at a rate of up to three years’ worth of an employee’s salary at the rate determined by the company. This three-year cap is important to note, as it establishes the upper limit of compensation in these cases.
Marzuna Tanzania offers a comprehensive EOR Solution designed to support businesses in their expansion efforts. Our team of highly skilled experts provides essential services such as employer of record and payroll services, which are vital for companies seeking to extend their operations in Tanzania. Additionally, our specialized HR platform aids in the identification and recruitment of top talent tailored to your unique requirements.
Our employer of record services play a crucial role in helping businesses navigate Tanzania’s complex legal and regulatory landscape. We assume responsibilities like payroll management, tax compliance, and benefit administration by officially serving as the employer of record for your workforce. This enables you to focus on your core business operations while ensuring the well-being of your employees.
Our payroll services are designed to ensure that your employees receive accurate and timely compensation. From computing taxes and deductions to generating payslips and submitting payroll taxes to the appropriate authorities, we handle every aspect of payroll processing.
With our HR platform, you can efficiently locate and hire the best-suited individuals for your organization. We provide access to a pool of skilled professionals, and our hiring process is designed to assist you in identifying the ideal candidates for your business.
At Marzuna EOR Solution, we are committed to supporting our clients in navigating the ever-evolving business landscape in Tanzania.
There are various methods for an organization to find individuals who are well-suited for the available positions. When a company seeks to expand its global footprint, it can choose to either establish its own in-house recruiting team or partner with an Employer of Record (EOR) service. EOR solutions can help in the efficient management of employee payroll while ensuring full compliance with tax and employment regulations.
International clients have the option to utilize the services of an Employer of Record to facilitate their employment needs.
| 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. |
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.
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.
Starting a profitable business in Tanzania can be challenging due to the intense market competition. However, businesses can achieve their goals through careful planning and compliance with local laws. Having the right team in place is a crucial factor for success.
Companies can benefit from collaborating with a global payroll provider like ours to find the best talent available. With our extensive expertise and international network, we can assist businesses in locating and hiring top candidates from around the world. Our team can manage the entire recruitment process, from candidate sourcing to conducting interviews and performing background checks.
In addition to recruitment services, our organization can provide comprehensive payroll solutions for companies operating in Tanzania. We can streamline payroll processes, ensure compliance with local tax and employment regulations, and ensure that employees are paid accurately and on time.
By partnering with us, businesses can focus on their core competencies while we take care of their recruitment and payroll needs. With our international connections and expertise, companies can achieve their objectives and thrive in the competitive Tanzanian market.
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% |
Our organization offers a comprehensive solution designed to streamline the process of establishing a new business for entrepreneurs and companies looking to expand into Tanzania. Recognizing the challenges and complexities involved in setting up a subsidiary in a foreign country, our experienced team is ready to support you at every step of the way.
Our service encompasses not only assisting companies in setting up their operations but also in finding the ideal personnel for their new venture. We can aid firms with the recruitment, screening, and onboarding processes to ensure they have a capable and dedicated workforce in place from day one. Our mission is to provide the best talent at competitive rates, helping companies maximize productivity and success.
Furthermore, our business takes care of not only the employment process but also all the necessary documentation and regulatory requirements. We understand the importance of meeting deadlines and complying with local laws, and our team is well-equipped to handle these challenges efficiently.
By utilizing our Employer of Record (EOR) services, businesses can focus on their core activities and leave administrative matters to us. We offer tailor-made solutions for each client based on their specific needs and goals. Reach out to our experts today to learn more about how we can assist you in launching a successful business in Tanzania.
