Located in East Africa, Tanzania is renowned for its stunning natural landmarks, such as the Serengeti National Park and the iconic Mount Kilimanjaro.

Beyond its appeal as a tourist destination, the country is also a strategic hub for companies seeking skilled remote workers.

With a literacy rate of 80.27%, English as one of its official languages, and a workforce of over 30 million people, Tanzania offers a diverse talent pool of educated professionals interested in global employment opportunities.

Key takeaways:

• Tanzania has a growing talent pool of job seekers in the IT, customer service, and financial industries, with many seeking full-time roles on a global team.
• The Tanzanian government aims to boost economic growth, create jobs, and improve the livelihoods of its citizens and residents with its Digital Economy Strategic Framework. 
• The relatively low cost of living compared to many Western countries makes it an attractive option for companies seeking to hire remote talent at competitive rates.

Advantages of Hiring in Tanzania

One key advantage of hiring remote workers from Tanzania is the high level of English proficiency, making Tanzanian talent an excellent resource for international companies.

In addition, approximately 60% of Tanzania’s population is under 25, and there is a growing enthusiasm for remote job opportunities.

Tanzania’s lower cost of living compared to many Western countries allows businesses to offer competitive salaries while maintaining cost efficiency.

This combination of skilled talent and economic advantage makes Tanzania an attractive option for building a global remote workforce.

Here are a few key details about the country:

• Languages: Swahili, English
• Currency: Tanzanian Shilling (TZS)
• Capital City: Dodoma
• Population: 69.04 Million
• Cost of Living Rank: 116th

Expanding Digital Infrastructure and a Growing Remote Workforce

Tanzania’s government is investing heavily in developing its communication infrastructure, including internet access expansion and digital infrastructure improvements.

Government leaders launched the Digital Economy Strategic Framework to drive economic growth, create jobs, and enhance the livelihoods of its citizens and residents. The goal of this initiative is to develop an inclusive, resilient, and competitive digital economy, positioning Tanzania as an emerging player in the global digital landscape.

Common job sectors for remote talent in Tanzania include:

• Data Science
• Content Writing
• Customer Support
• Project Management
• Software Engineer
• Information Technology
• Finance and Accounting

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Employment Laws: Hiring Compliantly in Tanzania

Employment Contracts

The Employment and Labour Relations Act (ELRA) of 2004 governs employment contracts in Tanzania. There are three main types of contracts:

• A contract for an unspecified period is the most common type and has no fixed end date. The contract continues until terminated by either party.
• A contract for a specified period is used for temporary or project-based positions. However, it’s subject to certain restrictions and limitations under ELRA.
• A contract for a specific task is created when an employee is hired to perform a particular project. Upon completion, the contract terminates.

Working Hours & Pay

The standard working week in Tanzania typically consists of 45 hours, with employees working nine hours per day, five days a week. 

Overtime is allowed under certain conditions and may not exceed 50 hours in a four-week period. Any overtime is paid at between 150%-200% of the regular hourly rate.

As of 2024, the minimum wage in Tanzania is TZS 60,000 per month. However, the minimum wage in Tanzania varies by sector and geographic zone.

Probation Periods

Probation periods are common in Tanzania and can’t exceed 12 months. Employers can terminate an employee during this period without providing a reason or notice.

Employer Taxes

Employers in Tanzania are subject to various taxes and contributions, including:

• National Social Security Fund (NSSF): Employers must contribute 10% of the employee’s gross salary to the NSSF, which provides social security benefits such as pensions and medical insurance.

• Workers’ Compensation Fund (WCF): One percent of gross wages is paid by employers to the WCF to compensate employees who suffer work-related injuries or illnesses.

• Skills and Development Levy (SDL): Employers are required to pay the SDL at a rate of 4% of the gross salary for employees.

Termination Process & Severance Pay

Under the Labour Act in Tanzania, employers must have a valid reason to terminate an employee. The notice period depends on the employee’s service length and payment method. 

Mandatory termination notice ranges from seven days for employees in their first month of employment to 28 days for employees who are past their first month of employment and paid monthly. 

Employees receive the equivalent of seven days of pay for each completed year of service, up to a maximum of 10 years.

Paid Leave Laws in Tanzania

Vacation and Holiday

Employee benefits in Tanzania include 28 days of annual paid leave. Additionally, the country has multiple paid public holidays, including:

• New Year’s Day
• Union Day
• Martyrs’ Day
• Independence Day
• Karume Day

Sick Leave

Employees are eligible for 126 days of paid sick leave during a 36-month period. The first 63 days are fully paid, and the remainder is paid 50% of the employee’s regular salary.

Maternity Leave

Female employees in Tanzania receive 12 weeks of paid maternity leave, which can be extended to 100 days for multiple births. Maternity leave can begin up to four weeks before the due date or earlier if medically certified.

Paternity Leave

New fathers receive three days of paid paternity leave.

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Tanzania: A Growing Hub for Remote Work

While there is no specific digital nomad visa, the single-entry visa allows remote workers to stay in Tanzania for up to 90 days, with the possibility of extension, making it a viable option for those seeking a short-term work base.

Dar es Salaam, Africa’s fastest-growing city, boasts a vibrant cultural scene. Zanzibar has stunning beaches and co-working spaces for digital nomads seeking to balance work and leisure.

How to Pay Remote Workers in Tanzania

There are several options available to pay remote employees, including in Tanzania. This includes bank wire transfers, services like Wise, and cryptocurrency.

However, some challenges to be aware of when paying remote teams include: 

• Incorrectly classifying employees and failure to comply with local labor laws can result in penalties and legal disputes.
• Changes in exchange rates can impact the amount employees receive and create challenges in payroll calculations.
• Manually setting up and processing global payroll can lead to errors and inaccuracies.

Companies should consider partnering with an Employer of Record (EOR) to mitigate these risks and simplify the payroll process. An EOR can handle all aspects of payroll, including tax compliance and local labor regulations.

Hire in Tanzania with Remofirst

Remofirst simplifies the process of hiring employees in Tanzania. Our team acts as the legal employer of your employees, handling all of the essential aspects of employment, such as onboarding, payroll, benefits administration, and compliance with Tanzanian labor laws.

With expertise in over 180 countries, Remofirst helps you hire anyone, anywhere in the world. Book a demo today to learn more.