Minimum Wage Tanzania 2026: GN 605A Sector Rates, Payroll Cost and Penalties
What is the minimum wage in Tanzania in 2026? On the Mainland, private employers pay at least the sector rate in GN No. 605A of 2025, in force since 1 January 2026. Rates run from TZS 80,000 a month for some domestic workers to TZS 765,900 for international energy companies. Any sector not listed pays at least TZS 175,000. Zanzibar sets its own rate.
Zatra's employer guide to the minimum wage Tanzania private employers must pay: all 16 sectors, statutory costs on top, a worked example, penalties and Zanzibar.
What the law says about the minimum wage
The Mainland minimum wage for private employers is set by a wage order. The current one is the Labour Institutions (Minimum Wage for Private Sector) Order, 2025, published as Government Notice No. 605A of 2025. The Ministry of Labour also hosts its own copy of GN 605A.
The TanzLII record of the Order shows it was made on 23 September 2025, published in Special Supplement No. 9 on 13 October 2025 and in force from 1 January 2026. Paragraph 7 revokes the 2022 Order, GN No. 687 of 2022.
The Order is made under section 39(1) of the Labour Institutions Act, Cap. 300. The TanzLII text of that Act (as at 30 November 2019) sets out the machinery:
| Section of Cap. 300 | What it does |
|---|---|
| s.35 | The Minister appoints a wage board for a sector and area to investigate pay and terms |
| s.38 | The wage board reports and recommends a minimum wage and conditions |
| s.39 | The Minister makes the wage order; s.39(7) requires employers to keep workers informed of the rates in force |
| s.40 | An order stays binding until suspended, cancelled, amended or superseded |
| s.41 | The order binds every employer and employee it describes, and prevails over Part III of the Employment and Labour Relations Act where both apply |
| ss.45 to 47 | Labour officers inspect, issue compliance orders and hear objections |
| ss.63 and 64 | Offences and penalties |
The Employment and Labour Relations Act, Cap. 366 (ELRA) supplies the definitions of employee and employer, the method for comparable rates (its First Schedule) and the employment standards in Part III.
The Ministry's release of 17 October 2025 reports an average rise of 33.4 percent, from TZS 275,060 to TZS 358,322, with sub-sectors growing from 25 to 46.
Who is affected
Paragraph 2 applies the Order to "all employees and employers in the private sector". The Order defines the private sector as any sector other than the public sector. In practice that covers:
- Companies, branches and partnerships employing staff on the Mainland, foreign or locally owned.
- Households that employ domestic workers.
- Hotels, farms, mines, security firms, schools, clinics and banks, each with its own sub-sector rate.
Public servants are outside the Order. So is Zanzibar, which sets its own minimum wage, covered below.
What is the minimum wage in Tanzania in 2026?
The Second Schedule of GN 605A sets these monthly minimums. Figures are read from the TanzLII copy of the Gazette and checked against PKF's alert, the Exactmanpower employer guide (15 January 2026) and Clyde & Co (5 February 2026).
| Sector (First Schedule) | Sub-sector | Monthly minimum, TZS |
|---|---|---|
| 1. Agriculture | (a) Crop or animal production | 175,000 |
| (b) Forestry | 185,000 | |
| (c) Fishing and fish farming | 300,000 | |
| 2. Health | (a) Hospital | 250,000 |
| (b) Health centre; (c) Polyclinic; (e) Pharmacy | 240,000 | |
| (d) Dispensary | 230,000 | |
| 3. Communications | (a) Programme, advertising and media | 289,000 |
| (b) Telecommunication services | 644,000 | |
| (c) Call centre | 380,000 | |
| 4. Domestic work | (a) Employed by diplomats and major businessmen | 328,000 |
| (b) Employed by entitled officers | 265,000 | |
| (c) Not residing in the employer's household | 160,000 | |
| (d) Other domestic workers | 80,000 | |
| 5. Hotel and hospitality | (a) Five and four star hotels | 375,000 |
| (b) Three star hotels | 225,000 | |
| (c) One and two star hotels, lodgings, guest houses, bars and restaurants | 195,000 | |
| (d) Tourist luggage porter | 225,000 | |
| (e) Tour guide | 320,000 | |
| (f) Hunting and related activities | 200,000 | |
| 6. Private security | (a) International companies | 292,000 |
| (b) Domestic companies | 197,000 | |
| 7. Energy | (a) International companies | 765,900 |
| (b) Domestic companies | 297,000 | |
| 8. Transport and shipping | (a) Aviation services | 498,000 |
| (b) Freight clearing and forwarding | 464,000 | |
| (c) Inland transport | 398,500 | |
| (d) Postal and courier | 287,500 | |
| 9. Construction | (a) Contractors Class I | 515,000 |
| (b) Contractors Class II to IV | 464,500 | |
| (c) Contractors Class V to VII | 398,500 | |
| 10. Mining | (a) Mining and prospecting licences | 695,000 |
| (b) Primary mining licences | 397,600 | |
| (c) Dealer licences | 595,000 | |
| (d) Broker licences | 333,500 | |
| 11. Private schools | (a) Pre-primary and primary | 276,500 |
| (b) Secondary | 281,300 | |
| (c) Colleges and vocational institutes | 281,500 | |
| (d) Higher education institutions | 300,700 | |
| 12. Trade and finance | (a) Business | 200,500 |
| (b)(i) Commercial banks | 733,000 | |
| (b)(ii) Community services banks | 698,400 | |
| (b)(iii) Micro credit financial services | 699,000 | |
| (b)(iv) Insurance companies | 699,700 | |
| (b)(v) Other financial institutions | 699,500 | |
| 13. Industrial | All industrial activities | 200,000 |
| 14. Sports, arts, entertainment and gaming | All activities | 287,500 |
| 15. Waste collection, processing and disposal | All activities | 188,500 |
| 16. Any other sector or area | Not specified elsewhere | 175,000 |
Sources differ on two lines. The ALN alert (6 November 2025) rounds the energy figure to TZS 765,000. Clyde & Co prints TZS 699,700 for other financial institutions. The Gazette text, PKF and Exactmanpower give TZS 765,900 and TZS 699,500, which we use.
Which sector rate applies to my business?
Classify each employee by the employer's activity, then the sub-sector. Paragraph 4(1) applies the rates to the sectors and areas in the First Schedule. Anything the Schedule does not name falls into item 16 at TZS 175,000.
The definitions in paragraph 3 settle several borderline cases:
- Agriculture includes crop production, forestry, fishing, animal husbandry, primary processing, storage and transport within an agricultural undertaking, and related cooperatives.
- Energy covers "all processes relating to the production or supply of energy from any source", so a solar installer and a fuel distributor may both sit here.
- Mining operations take the Mining Act meaning but exclude salt and limestone production. A salt works is not a mining employer for this Order.
- Domestic work is work "performed in or for a household" under an employment relationship.
The Order does not define "international" and "domestic" companies, "major businessmen" or "entitled officers". Where a classification is arguable, pay the higher rate or take written advice.
A multi-activity group may need more than one rate: a three star hotel with a tour desk pays TZS 225,000 to hotel staff and TZS 320,000 to tour guides. Security firms should also read our note on the private security company licence.
Does the minimum wage include allowances?
The Order does not say which allowances count towards the minimum. It sets a monthly figure per sub-sector and leaves the computation of comparable rates to the First Schedule to ELRA (paragraph 4(2)). It adds three entitlements on top of the wage:
- Leave travel allowance once every two years of continuous service with the same employer, in addition to paid annual leave (paragraph 5(2)).
- Subsistence allowance when the employer requires work outside the employee's work station, as agreed (paragraph 5(3)).
- Truck driver allowances for mileage, longer stays away and loading and unloading, as negotiated (paragraph 5(4)).
The safe practice is to meet the minimum from basic wage alone, with overtime, per diem and reimbursements on top.
Paragraph 6 protects existing better terms. An employee who earned more than the new rate on 1 January 2026 keeps the higher wage and terms for as long as they stay with the same employer. The Order cannot be used to cut pay.
The Schedule also prints hourly, daily, weekly and fortnightly equivalents for part-time and casual staff. A selection from the Gazette:
| Sub-sector | Hourly | Daily | Weekly | Fortnightly | Monthly |
|---|---|---|---|---|---|
| Other domestic workers, 4(d) | 410 | 3,077 | 18,462 | 36,923 | 80,000 |
| Non-resident domestic workers, 4(c) | 821 | 6,154 | 36,924 | 73,848 | 160,000 |
| Any other sector, 16 | 897 | 6,731 | 40,384 | 80,769 | 175,000 |
| One and two star hotels, bars, 5(c) | 1,000 | 7,500 | 45,000 | 90,000 | 195,000 |
| Domestic security companies, 6(b) | 1,010 | 7,577 | 45,462 | 90,923 | 197,000 |
| Industrial, 13 | 1,025 | 7,692 | 46,154 | 92,308 | 200,000 |
| Trade: business, 12(a) | 1,028 | 7,712 | 46,269 | 92,539 | 200,500 |
On our reading, the daily rate is the monthly figure divided by 26 and the hourly rate is the daily rate divided by 7.5. The Order prints no formula.
Has the minimum wage changed in 2026?
No new private sector order has been found as at 13 October 2026, after searching TanzLII, the Ministry's news pages and law firm alerts. The Ministry's May Day 2026 report refers only to the January 2026 increase.
The law sets no fixed review cycle. Section 40 keeps an order binding until the Minister suspends, cancels, amends or replaces it. The order it replaced was made in 2022, about three years before GN 605A. That gap is a pattern, not a legal rule.
The May 2025 public service increase to TZS 500,000 does not apply to private employers.
How does the minimum wage interact with PAYE?
Most sector minimums sit below the PAYE threshold. TRA's Taxes and Duties at a Glance 2025/26 (item 4.0) charges nil PAYE where monthly income does not exceed TZS 270,000 (F0176). Above that, the rate is 8 percent of the excess up to TZS 520,000 (F0177).
| Monthly minimum, TZS | Example sub-sectors | PAYE on gross at the minimum |
|---|---|---|
| 80,000 to 265,000 | Most domestic work, agriculture, health, hotels up to three star, domestic security, industrial, business, waste | Nil (F0176) |
| 276,500 to 300,700 | Private schools, media, postal, sports, international security, domestic energy, fishing | TZS 520 to 2,456 (F0177) |
| 320,000 to 498,000 | Tour guides, diplomats' domestic workers, five star hotels, call centres, inland transport, Class V to VII contractors, aviation | TZS 4,000 to 18,240 (F0177) |
| 515,000 to 765,900 | Class I contractors, mining, telecoms, banks and insurers, international energy | TZS 19,600 to 69,475 (F0177 to F0179) |
The band column applies TRA's rates to the gross figure. Some payroll systems compute PAYE after deducting the employee's NSSF share, which lowers the tax at the margin. Confirm the base your payroll uses with TRA or your adviser. Our guide to PAYE and net salary covers the full bands.
A raise can move an employee into the first band: a school teacher lifted from TZS 260,000 to TZS 276,500 now owes TZS 520 of PAYE a month.
What do NSSF, WCF and SDL add on top?
The minimum wage is the floor for the employee's pay. The employer's statutory contributions are charged on that pay, on top of it. The figures below are from the Zatra fee register at 26 September 2026 and match PwC's Tanzania summary (reviewed 9 September 2026).
| Charge | Rate and base | Who bears it | Paid to | Register ID |
|---|---|---|---|---|
| NSSF, private sector | 20% of wage; employee share not above 10% | Usually 10% employer, 10% employee | NSSF | F0279 |
| WCF | 0.5% of gross monthly earnings | Employer only | WCF | F0281 |
| SDL, Mainland | 3.5% of monthly gross emoluments, employers with 10 or more employees, by the 7th | Employer only | TRA | F0276 |
| PAYE | Bands from nil to 30% | Employee, withheld by employer, by the 7th | TRA | F0176 to F0180 |
| Late NSSF | 5% of the unpaid amount per month or part | Employer | NSSF | F0446 |
These are government charges paid against a GePG control number. The detail sits in our guides to NSSF and PSSSF, WCF employer duties and the skills and development levy. A new employer registers with all of them before the first payroll; see employer registration.
Worked example: what a minimum wage employee costs
Case 1, Ulinzi Imara Ltd. A locally owned security company in Dar es Salaam employs 40 guards on the domestic company rate of TZS 197,000 a month. It has more than ten employees, so SDL applies.
| Line | Basis | Per guard, TZS | 40 guards, TZS |
|---|---|---|---|
| Gross wage | GN 605A, 6(b) | 197,000 | 7,880,000 |
| PAYE | Below 270,000 (F0176) | 0 | 0 |
| NSSF, employee 10% | F0279 | (19,700) | (788,000) |
| Net pay to the guard | 177,300 | 7,092,000 | |
| NSSF, employer 10% | F0279 | 19,700 | 788,000 |
| WCF 0.5% | F0281 | 985 | 39,400 |
| SDL 3.5% | F0276 | 6,895 | 275,800 |
| Total employer cost | Gross plus employer charges | 224,580 | 8,983,200 |
Each month the company remits TZS 1,576,000 to NSSF (both shares), TZS 39,400 to WCF and TZS 275,800 to TRA. A TZS 197,000 guard costs 14 percent more than the wage, before overtime and leave travel.
Case 2, a five star hotel room attendant. The minimum is TZS 375,000, and the hotel has more than ten staff. On gross, PAYE is 8 percent of TZS 105,000, which is TZS 8,400. If payroll deducts the TZS 37,500 NSSF share first, PAYE is 8 percent of TZS 67,500, which is TZS 5,400. The employer adds TZS 37,500 NSSF, TZS 1,875 WCF and TZS 13,125 SDL: a total cost of TZS 427,500.
Case 3, arrears. A two star lodge with 15 staff kept paying TZS 175,000 after 1 January 2026. Its rate is TZS 195,000. By 30 September 2026 each worker is short TZS 20,000 for nine months, TZS 180,000 each and TZS 2,700,000 in total. The arrears also carry NSSF of 20 percent (TZS 540,000), WCF (TZS 13,500) and SDL (TZS 94,500). Late NSSF on the unpaid contributions may add 5 percent a month (F0446).
What happens if an employer pays below the minimum wage?
Several routes are open to the employee and the State. The sections below are from the 2019 TanzLII text of Cap. 300.
| Route | Provision | Consequence |
|---|---|---|
| Employee recovers the shortfall | s.41(3) | Claim in the District Court or Resident Magistrate's Court for the unpaid amount |
| Compliance order | s.46 | A labour officer orders the employer to comply within a stated period |
| Objection | s.47 | Written objection to the Labour Commissioner within 30 days, who may confirm, modify or cancel |
| Compounding | s.45A | A labour officer may compound an offence for a payment of at least TZS 100,000; appeal to the Labour Commissioner within 30 days |
| Prosecution | s.63(1) with s.64(2) | Fine of up to TZS 5,000,000, imprisonment of up to 3 months, or both |
| False information or obstruction | s.49, s.63(2) with s.64(3) | Fine of up to TZS 10,000,000, imprisonment of up to 6 months, or both |
Section 63(1) covers contravening "any other section of or rules made under this Act". Whether underpayment is itself a criminal offence turns on that wording, and no case was reviewed for this guide. The civil exposure is clear: the arrears are recoverable in full.
Amounts here are statutory penalties, not fees, and are not in the government fee register. Cap. 300 has been amended since 2019 and was revised in 2023, so section numbers may have moved. FB Attorneys (20 October 2025) cite the enabling power as section 97(1) of Cap. 300 R.E. 2023, while the Gazette and the Ministry cite section 39(1). Confirm current numbering before relying on a section in correspondence.
What do labour officers check during an inspection?
Labour officers are appointed under section 43 of Cap. 300. Under section 45 they may enter premises at any reasonable time with a certificate of authorisation. They may examine and copy records, question people on site and start proceedings in court.
On a wage inspection, expect requests for payslips since 1 January 2026 and written particulars under ELRA section 16. Officers also ask for attendance records (ELRA section 97), transfer records and NSSF, WCF and TRA receipts.
Obstructing an officer or giving false information is a separate offence under section 49. Our guide to payroll records and retention lists what to keep and for how long.
How do underpaid employees claim at the CMA?
An employee can refer a wage dispute to the Commission for Mediation and Arbitration (CMA). The CMA mediates first. If mediation fails, the dispute goes to arbitration, and the award can be enforced through the Labour Court.
Underpayment claims often arrive with a termination claim in one referral. The referral time limits sit in the Labour Institutions (Mediation and Arbitration) Rules, GN No. 64 of 2007: commonly cited as 30 days for termination disputes and 60 days for other disputes, with condonation for late referrals. Confirm the limits for your case.
Our guide to labour disputes at the CMA sets out what an employer's file should contain. Representation at the CMA or the Labour Court, an objection to a compliance order, a criminal charge or a legal opinion on classification goes to an advocate on our team.
How does Zanzibar set its minimum wage?
Labour is not a Union matter. GN 605A is made under Mainland law and does not apply in Unguja or Pemba. Zanzibar employers follow the Employment Act No. 11 of 2005. According to WageIndicator's summary (updated 19 January 2025), wages may be set by a wage order on the recommendation of the Wages Advisory Board.
The last private sector figure we could verify is TZS 347,000 a month. The Citizen reported on 24 March 2023 that the Zanzibar Minister of State for Labour, Economy and Investment raised it from TZS 300,000, effective April 2023. WageIndicator's Zanzibar page, marked valid for April 2026, still shows TZS 347,000.
We could not read the Zanzibar order itself, so its number, sectors and any later revision are unknown. Confirm with the Zanzibar Labour Commission.
| Point | Mainland Tanzania | Zanzibar |
|---|---|---|
| Law | Labour Institutions Act, Cap. 300; ELRA, Cap. 366 | Employment Act No. 11 of 2005 |
| Instrument | GN No. 605A of 2025 | Zanzibar wage order; number not verified |
| Private sector floor | Sector rates from TZS 80,000; TZS 175,000 for unlisted sectors | TZS 347,000 reported from April 2023 |
| In force | 1 January 2026 | April 2023, as reported |
| Social security | NSSF (F0279), WCF (F0281) | Zanzibar Social Security Fund; confirm work injury cover |
| Skills levy | 3.5%, 10 or more employees (F0276) | 4%, 4 or more employees per TRA's 2025/26 guide; a cut to 3% was proposed for 2026/27 |
| PAYE | Nil up to TZS 270,000 (F0176) | Same bands in TRA's guide; confirm the collecting authority |
A group with staff on both sides runs two payrolls. On currency, see our guide to salary currency and contracts.
What to do now
- Classify the workforce. List every employee with the sector and sub-sector of GN 605A that applies, and keep the reasoning on file.
- Test the payroll. Compare each basic wage with the Second Schedule rate, monthly or hourly as the case may be.
- Clear arrears. Compute any shortfall from 1 January 2026, pay it with the next payroll and remit the matching NSSF, WCF and SDL.
- Update contracts. Issue a written variation stating the new wage and effective date, and add the leave travel and subsistence allowances to policy. Our guide to employment contracts and workplace policies has the clauses. Do not cut other benefits to fund the raise; paragraph 6 preserves them.
- Recheck PAYE bands. Confirm which employees moved above TZS 270,000 and how your system treats the NSSF share.
- Notify staff and keep the file. Post the rates in force, as section 39(7) requires, and keep payslips, payment proofs and contribution receipts together.
- Separate Zanzibar. Confirm the island rate with the Zanzibar Labour Commission and run island staff on their own payroll.
- Escalate disputes early. Route a compliance order, CMA referral or classification doubt to an advocate before the time limit runs.
Key dates
| Date | Event | Source |
|---|---|---|
| April 2023 | Zanzibar private sector minimum reported at TZS 347,000 | The Citizen, 24 Mar 2023 |
| 23 September 2025 | GN 605A made | TanzLII record |
| 13 October 2025 | GN 605A published, Special Supplement No. 9 | Gazette text |
| 17 October 2025 | Minister announces the Order in Dar es Salaam | Ministry release |
| 1 January 2026 | New rates in force; GN 687 of 2022 revoked | GN 605A paras 1 and 7 |
| 7th of each month | PAYE and SDL returns and payment for the previous month | TRA Glance item 9.0 |
| Within one month after month end | NSSF contributions; 5% a month if late | F0446 |
| Within 30 days of a compliance order | Written objection to the Labour Commissioner | Cap. 300 s.47 |
| 13 October 2026 | No 2026 amending order found | Zatra search |
How Zatra helps
Zatra's payroll compliance service classifies roles under GN 605A, tests the payroll, computes arrears and sets the statutory calendar for PAYE, SDL, NSSF and WCF. Our HR consulting team drafts contract variations and allowance policies. A Senior Advisory Session at USD 49 suits a single classification question. Prices are on our pricing page.
NSSF, WCF, SDL and PAYE are paid to the authority at the official amount against a GePG control number. These government charges are separate from Zatra's professional fee and are never marked up. Our government fees handbook lists the official figures.
The Labour Commissioner, labour officers, the CMA and the courts decide wage disputes. Zatra prepares and organises the employer's file; it does not decide or guarantee any authority's outcome. Prosecution, representation at the CMA or Labour Court, and formal legal opinions go to an advocate on our team.
Sources and status
Accurate as at 13 October 2026. Rates are from GN 605A of 2025; contribution rates are from the Zatra fee register at 26 September 2026.
- Labour Institutions (Minimum Wage for Private Sector) Order, 2025, GN No. 605A: Gazette text via TanzLII, published 13 Oct 2025. Accessed 13 Oct 2026.
- GN 605A of 2025, record page: TanzLII, version of 13 Oct 2025. Accessed 13 Oct 2026.
- GN 605A, Ministry copy: Prime Minister's Office (Labour), Oct 2025; could not be opened by our tools. Accessed 13 Oct 2026.
- Labour Institutions Act, Cap. 300: TanzLII, text as at 30 Nov 2019. Accessed 13 Oct 2026.
- Kima cha chini mshahara sekta binafsi chaongezeka: Prime Minister's Office (Labour), 17 Oct 2025. Accessed 13 Oct 2026.
- Rais Samia awataka wafanyakazi kuwa wazalendo: Prime Minister's Office (Labour), 1 May 2026. Accessed 13 Oct 2026.
- Taxes and Duties at a Glance 2025/26: Tanzania Revenue Authority, July 2025, items 4.0, 5.0 and 9.0. Accessed 13 Oct 2026.
- Tanzania: other taxes: PwC Worldwide Tax Summaries, reviewed 9 Sep 2026. Accessed 13 Oct 2026.
- Introduction of a new wage order in Tanzania: Clyde & Co, 5 Feb 2026. Accessed 13 Oct 2026.
- Key changes introduced by the Minimum Wage Order, 2025: ALN Tanzania, 6 Nov 2025. Accessed 13 Oct 2026.
- New minimum wages for the private sector 2025: PKF Eastern Africa, Oct 2025. Accessed 13 Oct 2026.
- Employer guide: new minimum wage framework: Exactmanpower, 15 Jan 2026. Accessed 13 Oct 2026.
- Q&A, 20 October 2025: FB Attorneys, 20 Oct 2025. Accessed 13 Oct 2026.
- Government raises private sector minimum wage by 33.4 percent: The Citizen, 17 Oct 2025. Accessed 13 Oct 2026.
- Zanzibar announces minimum wage for the private sector: The Citizen, 24 Mar 2023. Accessed 13 Oct 2026.
- Minimum wages regulations, Zanzibar: WageIndicator Foundation, updated 19 Jan 2025. Accessed 13 Oct 2026.
- Minimum wage, Zanzibar: WageIndicator Foundation, valid April 2026. Accessed 13 Oct 2026.
- Zatra fee register lines F0176 to F0180, F0276, F0279, F0281 and F0446: Tanzania Government Fees 2026, fees at 26 Sep 2026. Accessed 13 Oct 2026.
Figures to confirm before you act
- Gazette text: rates were read from the TanzLII scan, which has OCR noise; the Ministry PDF could not be opened, so check any rate you rely on against the printed Gazette
- Energy and other financial institutions: TZS 765,900 and TZS 699,500 per the Gazette, PKF and Exactmanpower; ALN rounds to 765,000 and Clyde & Co prints 699,700
- Undefined labels: "international" and "domestic" companies, "major businessmen" and "entitled officers" are not defined in the Order
- Section numbers in Cap. 300: taken from the 2019 text; the R.E. 2023 numbering and later amendments were not read
- Penalty amounts: s.64 fines and s.45A compounding are statutory, not in the fee register; whether underpayment is itself an offence is not settled here
- PAYE base: whether the employee's NSSF share is deducted before PAYE; confirm with TRA
- CMA time limits: 30 and 60 days under GN 64 of 2007, as commonly cited; confirm for your dispute
- Zanzibar: the order number, sector rates and any revision after April 2023; SDL rate for 2026/27
This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.
Frequently asked questions
Can an employer agree with staff to pay less than the minimum wage?
No. Section 41 of the Labour Institutions Act makes the order binding on every employer and employee it covers. A contract term below the rate does not displace it, and the employee can still recover the shortfall. Better terms can be agreed upward only.
Does the minimum wage apply to probationary employees?
The Order applies to all private sector employees and makes no exception for probation. An employee on probation is still an employee under ELRA, so the sector minimum applies from the first day. Probation affects termination procedure, not the wage floor.
Do casual and part-time workers get the minimum wage?
Yes. The Second Schedule prints hourly, daily, weekly and fortnightly equivalents for each sub-sector. A casual cleaner in an unlisted sector, for example, earns at least TZS 897 an hour or TZS 6,731 a day under item 16.
Are interns and apprentices covered?
The Order does not address them. Where an intern works under the employer's direction for pay, the relationship may be employment, and the minimum then applies. Genuine training placements under a recognised programme may differ. Take advice before relying on an intern label.
Can payment in kind, such as food or housing, count towards the minimum wage?
The Order is silent, and ELRA limits deductions from remuneration. The cautious position is to pay the full minimum in cash or by transfer and treat housing and meals as additional benefits. Housing provided to staff may also carry PAYE value.
Does a foreign-owned company always pay the international rate?
Only security and energy split rates by international and domestic company, and the Order does not define either term. Foreign ownership is the obvious test, but it is not stated. Where the label is unclear, pay the international rate or record written advice.
Must the minimum wage be paid in Tanzanian shillings?
The Schedule states rates in shillings. A contract in US dollars must still deliver at least the shilling minimum at the time of payment. Exchange movements cannot take pay below the floor, so set a shilling floor clause in dollar contracts.
How long can an employee wait before claiming unpaid minimum wages?
A CMA referral has a time limit under the mediation and arbitration rules, and a court claim has its own limitation period. Late referrals need condonation. Employers should not assume old arrears have lapsed; calculate the full shortfall and take advice.
Sources & regulators
Verify before filing: Rates, forms and thresholds move by Finance Act, Government Notice and portal revision. Confirm the live schedule on the mandate-holder portal before you budget or submit. Law-firm alerts and Big Four notes are discovery only.
- Labour Institutions (Minimum Wage for Private Sector) Order, 2025, GN No. 605A of 2025: Gazette text hosted by TanzLII, made 23 Sep 2025, published 13 Oct 2025 (Special Supplement No. 9), in force 1 Jan 2026; paras 1 to 7 and both Schedules read 13 Oct 2026; primary source. Accessed 2026-10-13.
- GN 605A of 2025, TanzLII record page: TanzLII, version of 13 Oct 2025; commencement 1 Jan 2026; primary source. Accessed 2026-10-13.
- GN 605A of 2025, Ministry of Labour copy: Prime Minister's Office (Labour, Youth, Employment and Persons with Disability), published Oct 2025; blocked to automated fetch on 13 Oct 2026; primary source. Accessed 2026-10-13.
- Labour Institutions Act, Cap. 300: TanzLII, text as at 30 Nov 2019 (Act 3 of 2020 not applied); ss.35 to 47, 49, 63 and 64 read 13 Oct 2026; primary source. Accessed 2026-10-13.
- Kima cha chini mshahara sekta binafsi chaongezeka: Prime Minister's Office (Labour), published 17 Oct 2025; s.39(1) Cap. 300, 33.4% average rise, effective 1 Jan 2026; primary source. Accessed 2026-10-13.
- Rais Samia awataka wafanyakazi kuwa wazalendo: Prime Minister's Office (Labour), published 1 May 2026; no 2026 private sector revision mentioned; primary source. Accessed 2026-10-13.
- TRA: Taxes and Duties at a Glance 2025/26: Tanzania Revenue Authority, July 2025; items 4.0 (PAYE), 5.0 (SDL) and 9.0 (due dates); primary source. Accessed 2026-10-13.
- PwC Worldwide Tax Summaries: Tanzania, other taxes: PwC, last reviewed 9 Sep 2026; independent source on NSSF 20%, WCF 0.5% and SDL 3.5%. Accessed 2026-10-13.
- Clyde & Co: Introduction of a new wage order in Tanzania: Clyde & Co, published 5 Feb 2026; independent law firm note on GN 605A rates and allowances. Accessed 2026-10-13.
- ALN: Key changes introduced by the Minimum Wage Order, 2025: ALN Tanzania (A&K Tanzania), published 6 Nov 2025; independent law firm note. Accessed 2026-10-13.
- PKF: New minimum wages for the private sector 2025: PKF Eastern Africa, published Oct 2025; independent full rate table. Accessed 2026-10-13.
- Exactmanpower: Employer guide to the new minimum wage framework: Exactmanpower, published 15 Jan 2026; independent full rate table. Accessed 2026-10-13.
- FB Attorneys: Q&A, 20 October 2025: FB Attorneys, published 20 Oct 2025; independent source citing s.97(1) of Cap. 300 R.E. 2023. Accessed 2026-10-13.
- The Citizen: Government raises private sector minimum wage by 33.4 percent: The Citizen (Mwananchi Communications), published 17 Oct 2025; independent newspaper. Accessed 2026-10-13.
- The Citizen: Zanzibar announces minimum wage for the private sector: The Citizen, published 24 Mar 2023; TZS 300,000 to 347,000 from April 2023. Accessed 2026-10-13.
- WageIndicator: Minimum wages regulations, Zanzibar: WageIndicator Foundation, updated 19 Jan 2025; Employment Act No. 11 of 2005 and the Wages Advisory Board. Accessed 2026-10-13.
- WageIndicator: Minimum wage, Zanzibar: WageIndicator Foundation, page valid April 2026; private sector TZS 347,000 from 1 Apr 2023. Accessed 2026-10-13.
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