Global EOR Services in Tanzania
Find, Hire & Pay Employees in Tanzania
Expanding your business into Tanzania offers great opportunities, but navigating local employment laws, labor regulations, and business registration processes can be challenging. Global Employer of Record (EOR) services allow companies to hire employees in Tanzania without setting up a local legal entity, making expansion faster, safer, and more cost-effective.
Why Use Global EOR Services in Tanzania?
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to Afghan labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇹🇿Tanzania: A Comprehensive Guide to Employment and Labor Practices
Tanzania has a rapidly developing economy with increasing foreign investment, particularly in sectors such as energy, technology, and infrastructure. Its strategic location in East Africa provides access to regional markets, making it an attractive destination for businesses looking to expand across the African continent.
Key Facts about
Population: Over 65 million people
Capital: Dodoma (largest city: Dar es Salaam)
Official Languages: Swahili and English
Currency: Tanzanian Shilling (TZS)
Key Industries: Agriculture, mining, tourism, and services
Labor Market: Tanzania has a growing skilled workforce, particularly in urban areas, and relies on local labor for most industries
Employment Laws and Policies in Tanzania
Tanzania’s employment relationships are mainly governed by the Employment and Labor Relations Act (ELRA) of 2004, supported by additional labor regulations. Employers must comply with these rules to avoid disputes and penalties.
Working Hours and Overtime
Standard working hours are 45 hours per week (9 hours/day for 5 days or 8 hours/day for 6 days).
Overtime is permitted but must be voluntary and compensated at a higher rate.
Wages and Minimum Pay
The minimum wage is sector-specific and reviewed periodically by the government.
Wages must be paid in legal tender (Tanzanian Shillings) and not in goods or services.
Leave Entitlements
Annual Leave: Minimum of 28 consecutive days of paid leave after 12 months of employment.
Sick Leave: Employees are entitled to 126 days of sick leave in a 36-month cycle (first 63 days fully paid, remaining 63 days at half pay).
Maternity Leave: 84 days (100 days for multiple births), fully paid by the employer.
Paternity Leave: 3 days per year.
Public Holidays: At least 16 national holidays
Employment Contracts
Contracts can be fixed-term, indefinite, or for specific tasks.
Written contracts are required for employment longer than 6 months and must specify key terms such as wages, leave entitlements, working hours, and notice periods.
Termination and Severance
Employers must provide valid reasons for termination related to conduct, capacity, or operational requirements.
A notice period is required, varying from 7 to 28 days depending on length of service.
Employees dismissed unfairly can claim compensation of up to 12 months’ wages.
Severance Pay: Minimum of 7 days’ basic wage for each completed year of service, capped at 10 years.
Social Security and Compliance
Employers must register employees with the National Social Security Fund (NSSF).
Contributions: 10% employer + 10% employee of monthly wages.
Employers are also responsible for workplace safety and health under the Occupational Health and Safety Act.
Opening a Legal Entity in Tanzania
Establishing a company in Tanzania can be complex and time-consuming.
Common Business Structures
Private Limited Company (Ltd): Requires at least 1 shareholder and 1 director.
Public Limited Company (PLC): Designed for large companies seeking public listing.
Branch Office: Operates as an extension of a foreign company.
Representative Office: Limited to market research and non-commercial activities.
Registration Process
Name Reservation: Apply with the Business Registration and Licensing Agency (BRELA).
Prepare Documents: Submit the Memorandum and Articles of Association.
Certificate of Incorporation: Register and obtain legal status.
Tax Registration: Register with the Tanzania Revenue Authority (TRA) for CIT, VAT, and PAYE.
Social Security Registration: Enroll employees in NSSF.
Corporate Bank Account: Open a bank account in Tanzania.
Capital and Licensing Requirements
Minimum capital depends on the sector and ownership structure.
Certain industries (mining, telecom, energy) require special licenses.
The Tanzania Investment Centre (TIC) provides investment certificates for foreign investors.
Popular Global EOR Providers Supporting Tanzania
(They often partner with in-country firms for local compliance.)
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