Overtime Pay Tanzania: Working Hours, Rates, Night Work and Holiday Pay

This guide sets out overtime pay Tanzania employers owe under the Employment and Labour Relations Act, the hourly-rate formula, night, rest-day and holiday pay, PAYE, records, enforcement and the different Zanzibar rules, with a worked payroll example in shillings.

What the law says about working hours and overtime

On the Mainland, working time is governed by Sub-Part B of Part III of the Employment and Labour Relations Act, Cap. 366. Sub-Part B runs from section 18 to section 26. Section 27 and the First Schedule then convert monthly pay into an hourly rate. We read the TanzLII consolidation of Cap. 366, the version in force from 31 December 2023 to 13 March 2025, which carries the 2019 revision.

The Labour Laws (Amendments) Act, 2025 came into force on 14 March 2025. Notes by Bowmans (28 March 2025) and Ernestilla, Mafita & Company Advocates (4 June 2025) list its changes, from fixed-term contracts to CMA procedure. Neither reports any change to the hours sections. We could not open the amending Act itself.

Older guides, including the Association of Tanzania Employers note of 20 March 2023, cite the 2004 numbering, which runs one lower (s.19 for hours). The rules are the same; only the numbers differ.

Who is affected

• Every Mainland employer with staff on hourly, daily, weekly or monthly pay.
• Payroll and HR teams who compute overtime, night premiums and holiday pay and withhold PAYE on them.
• Foreign investors setting shift patterns for a new plant or hotel. Our guide to employment contracts and workplace policies shows where hours belong in the contract.
• Zanzibar employers, who follow a separate Act with different numbers, covered below.

Section 18(1) takes some managers out of the Sub-Part. It does not apply to employees who manage other employees on behalf of the employer and report directly to a senior management employee. A job title alone does not prove that status.

Section 18(2) also relaxes the daily cap, the overtime rules, the break, the rest periods and the holiday rule for emergency work that cannot be done during ordinary hours. It is an emergency rule, not a planning tool.

What are the ordinary working hours in Tanzania?

Section 20(2) caps ordinary hours at six days in any week, 45 hours in any week and nine hours in any day. Section 20(1) sets an outer limit of 12 hours in any day, overtime included.

Section 19 defines a week as seven days measured from the day the employee normally starts the working week. A day is 24 hours from the time the employee normally starts work. Overtime is work over and above ordinary hours.

The Act does not name Sunday as the rest day. Sunday work is ordinary work if it falls inside the employee's agreed working week.

Section 14 makes these standards part of every contract unless the contract is more favourable.

When can an employer require overtime?

Only under an agreement. Section 20(3)(a) says an employer shall not require or permit an employee to work overtime except in accordance with an agreement. Section 20(3)(b) adds the cap: not more than 50 overtime hours in any four-week cycle.

The agreement can sit in the contract, a separate overtime letter or a collective agreement. In practice, write three things down:

• Consent. The employee agrees to work overtime when reasonably requested.
• Approval. Who may authorise overtime, and how it is recorded before or on the day.
• Rate. At least 1.5 times the basic wage, or a better contractual rate.

The cap counts across the four-week cycle, not the calendar month. A 12-hour shift on a nine-hour contract uses 3 overtime hours a day and reaches 50 hours in under 17 working days.

The section bars an employer from requiring or permitting overtime outside an agreement. Hours a supervisor knowingly accepts are therefore payable. Control the approval step, not the payment.

How is overtime pay calculated in Tanzania?

Section 20(5) requires the employer to pay not less than one and one-half times the employee's basic wage for any overtime worked. Two definitions matter.

Section 4 defines basic wage as that part of an employee's remuneration paid in respect of work done during the hours ordinarily worked. Housing, transport and other allowances are not part of it unless the contract says otherwise. The same definition drives annual leave pay.

The First Schedule then gives the conversions. For a monthly wage, divide the monthly rate by 4.333 times the number of hours ordinarily worked each week. The Schedule prints the factor as "4,333", using a decimal comma.

For a 45-hour week the divisor is 4.333 × 45 = 194.985. A basic wage of TZS 1,000,000 a month therefore gives an hourly rate of about TZS 5,129, and an overtime rate of at least TZS 7,693.

For piece workers, section 27 bases the weekly wage on earnings over the previous 13 weeks.

What do night work, rest days and public holidays pay?

Each premium has its own section. The rates below are statutory minimums on the Mainland.

Night work. Section 21(1) defines night as the hours after 20:00 and before 06:00. It is barred for children under 18 and restricted for some pregnant employees, new mothers and anyone medically certified unfit.

Public holidays. The days come from the Public Holidays Act, Cap. 35. The TanzaniaLaws consolidation lists them in its Schedule, including Union Day on 26 April, Peasants' Day on 8 August and Mwalimu Nyerere Day on 14 October. Section 3 lets the President declare extra or substitute days by proclamation. Confirm each year's official list, because Eid dates move.

The holiday rule applies tomorrow. Any employee who works on Mwalimu Nyerere Day, 14 October 2026, is owed double the basic wage for each hour worked that day.

Can hours be compressed or averaged?

Yes, within limits. Both routes need paper before the roster changes.

• Compressed working week, s.22. A written agreement may require up to 12 hours on a day without overtime pay. The week may not exceed five days, 45 ordinary hours or 10 overtime hours.
• Averaging, s.23. A collective agreement may average ordinary and overtime hours over an agreed period of up to one year. The average may not exceed 40 ordinary hours and 10 overtime hours a week.

Averaging needs a collective agreement, so it is open only where a recognised trade union bargains for the staff. A non-union employer that wants long shifts uses the compressed week instead, with each employee's written consent.

Is overtime taxed under PAYE?

Yes. Section 7(2)(a) of the Income Tax Act, Cap. 332 includes payments of wages, salary, fees, commissions, bonuses and allowances in employment income. Overtime, night premiums and holiday pay are wages for work done, so they are added to the month's pay and taxed through PAYE.

The bands below are from TRA's Taxes and Duties at a Glance 2025/26, item 4.0. The Zatra fee register records them as unchanged by the Finance Acts of 2024, 2025 and 2026.

SDL is 3.5 percent of monthly gross emoluments for Mainland employers with 10 or more employees (F0276). WCF is 0.5 percent of employees' gross monthly earnings (F0281). Whether the NSSF counts overtime as contributory wage depends on the fund's definition of wage; confirm with NSSF. Our guides to PAYE and net salary and the Skills and Development Levy cover the full computation.

PAYE and SDL are filed and paid by the 7th of the following month, per item 9.0(b) of the TRA guide.

How do Zanzibar's hours and overtime rules differ?

Labour is not a Union matter. Zanzibar employers follow the Employment Act No. 11 of 2005, published in the Zanzibar Government Gazette Legal Supplement of 7 October 2005. We read the Act as enacted. Later Zanzibar amendments, if any, could not be checked this session.

The Zanzibar rates are higher and the hours shorter. Section 63(8)(a) even prints the formula: monthly salary × overtime hours × 2 ÷ 30 ÷ 8.

Two points need care. Section 63(8)(c) sets three times the hourly rate for certain hours beyond eight, but its cross-reference is garbled. Section 3 defines night from 19:00, while section 66(3) uses 22:00 for the premium.

A March 2024 Zanzibar government labour procedure repeats the 8 and 42-hour limits. Disputes run under the Labour Relations Act No. 1 of 2005: mediation through the Labour Commission's dispute unit under sections 72 to 74, then the Zanzibar Industrial Court under section 80. Zanzibar SDL is 4 percent for employers with four or more employees (F0278). Our note on running a group across the Mainland and Zanzibar covers split payrolls.

Worked example: overtime on a TZS 1,200,000 salary

The facts. Neema is a production supervisor in Dar es Salaam on a basic wage of TZS 1,200,000 a month and a 45-hour week. She also receives a housing allowance, which is not part of basic wage. In October 2026 she works:

• 20 overtime hours on ordinary days, within an overtime agreement;
• 8 hours on Mwalimu Nyerere Day, 14 October;
• 40 ordinary hours on night shift, between 22:00 and 06:00.

Step 1, hourly rate. TZS 1,200,000 ÷ (4.333 × 45) = 1,200,000 ÷ 194.985 = TZS 6,154 an hour.

Step 2, the cap. 20 ordinary-day overtime hours are well inside the 50-hour cycle. The holiday hours are paid under section 26.

Step 3, PAYE. Her basic pay already sits above TZS 1,000,000, so every extra shilling falls in the 30 percent band (F0180). PAYE on the extra pay is about 30 percent of TZS 295,408, or TZS 88,622. Her pension deduction may reduce this if the fund treats overtime as contributory wage.

Step 4, employer charges. SDL at 3.5 percent adds TZS 10,339 (F0276). WCF at 0.5 percent adds TZS 1,477 (F0281). Both are paid to TRA and WCF against control numbers.

The cautious reading. We pay the holiday hours at double on top of salary. Some employers argue the salary already covers one times the holiday; the Act does not settle it, so the higher figure is safer.

The same month in Zanzibar. Under section 63(8), weekday overtime is TZS 1,200,000 × 2 ÷ 30 ÷ 8 = TZS 10,000 an hour, so 20 hours cost TZS 200,000. Holiday hours at 2.5 times are TZS 12,500 an hour, or TZS 100,000 for 8 hours. That is TZS 300,000 before the night premium, against TZS 283,099 on the Mainland for the same two items.

What records must an employer keep?

Section 97 requires the employer to keep records of the written particulars under section 16 and of any remuneration paid. Each employee's record is kept for five years after that employee's termination. Section 16 particulars include the hours of work, and section 28(2) requires a written statement of particulars with each payment.

For overtime, the defensible file has five parts:

• the signed overtime agreement or the clause in the contract;
• daily time records or a biometric log showing start, finish and breaks;
• overtime approvals signed by the supervisor;
• a payslip that shows overtime, night and holiday hours separately from basic pay;
• the PAYE and SDL returns that include those amounts.

In a CMA claim for unpaid overtime, an employer without time records has little to set against the employee's own account of the hours. Our guide to payroll records retention sets out the full file and the tax retention rule.

What happens if an employer does not pay overtime?

Three routes are open: inspection, prosecution and a dispute at the CMA.

Labour inspection. Under the Labour Institutions Act, Cap. 300, section 45 lets a labour officer enter a workplace at any reasonable time, examine and copy records and question staff. Section 46 lets the officer issue a compliance order, which the employer must display and obey within the stated period.

CMA disputes. An overtime claim is a dispute of right referred to the Commission for Mediation and Arbitration. Rule 10(2) of the Labour Institutions (Mediation and Arbitration) Rules, GN 64 of 2007, gives 60 days from the date the dispute arose. A termination dispute has 30 days under rule 10(1). In Revocatus A. Kitole and 420 Others v G4S Security Solutions (T) Ltd, decided on 27 August 2021, the Labour Court dismissed a referral filed outside the 60 days.

Expect each unpaid month to be argued as a fresh dispute, so a long-running shortfall may still be partly in time. Mediation should conclude within 30 days of referral under section 87. Our guide to labour disputes at the CMA covers the employer's side, and a termination that follows an overtime row is covered in our employee termination guide.

What to do now

1. Map your hours. List each role's ordinary days and hours and check them against 45, 9 and 6 on the Mainland, or 42 and 8 in Zanzibar.
2. Get overtime agreements signed. Add a consent and approval clause to every contract, or sign a separate letter for current staff.
3. Fix the hourly divisor. Set payroll to divide basic monthly wage by 4.333 times weekly hours, excluding allowances.
4. Track the four-week cap. Report overtime per employee per cycle and stop at 50 hours.
5. Code the premiums. Create separate payslip lines for overtime, night, rest-day and public holiday hours.
6. Run PAYE and SDL on the full amount. Include every premium in the month it is paid and file by the 7th.
7. Keep the evidence. Hold time records, approvals and payslips for five years after each employee leaves.
8. Audit a past quarter. Recompute three months of overtime and pay any shortfall before a claim reaches the CMA.

Key dates and deadlines

How Zatra helps

Zatra's payroll compliance service sets up the hourly divisor, premium codes, statutory deductions and the record file. Our HR consulting team drafts overtime agreements and shift policies and reviews past overtime for exposure. The Finance & Tax Control plan, USD 3,600 to 4,800 a year, includes routine PAYE and SDL filings. A Senior Advisory Session at USD 49 suits a single rostering or overtime question. Prices are on our pricing page.

Taxes, levies and contributions are paid to TRA, NSSF and WCF at the official rate against a control number. These government charges are separate from Zatra's professional fee and are never marked up.

Labour officers, the CMA and the courts decide inspections, compliance orders and claims. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. Representation at the CMA, the Labour Court or the Zanzibar Industrial Court, a response to a prosecution, or a formal legal opinion goes to an advocate on our team.

Sources and status

Accurate as at 13 October 2026. Rates and levies are from the Zatra fee register at 26 September 2026.

• Employment and Labour Relations Act, Cap. 366: TanzLII, version 31 Dec 2023 to 13 Mar 2025, with the 2019 revision; ss.4, 14, 16, 18 to 28, 97, 103, First Schedule. Accessed 13 Oct 2026.
• Labour Institutions Act, Cap. 300: TanzLII, legislation as at 30 Nov 2019; ss.45 to 49, 63 and 64. Accessed 13 Oct 2026.
• Employment Act No. 11 of 2005 (Zanzibar): Zanzibar Government Gazette Legal Supplement No. 6115, 7 Oct 2005; ss.3, 48, 62 to 67. Accessed 13 Oct 2026.
• Labour Relations Act No. 1 of 2005 (Zanzibar): Act text, assented 5 Mar 2005; ss.72 to 75, 80. Accessed 13 Oct 2026.
• Income Tax Act, Cap. 332: TanzLII, version of 30 Nov 2019; s.7. 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(b). Accessed 13 Oct 2026.
• Public Holidays Act, Cap. 35: TanzLII, Revised Laws 2002 text; s.3 and Schedule. Accessed 13 Oct 2026.
• Public Holidays Act, consolidated Schedule: TanzaniaLaws, amendments to Act No. 25 of 2002, site dated 2019. Accessed 13 Oct 2026.
• Revocatus A. Kitole and 420 Others v G4S Security Solutions (T) Ltd, Revision No. 4 of 2020: High Court Labour Division, 27 Aug 2021; GN 64 of 2007 r.10. Accessed 13 Oct 2026.
• Hours and days of work: Association of Tanzania Employers, 20 Mar 2023. Accessed 13 Oct 2026.
• Tanzania: key amendments to labour laws: Bowmans, 28 Mar 2025. Accessed 13 Oct 2026.
• Legal alert: amendment to the ELRA: DLA Piper Africa, IMMMA Advocates, 28 Mar 2025. Accessed 13 Oct 2026.
• A critical analysis of latest amendments to employment laws in Tanzania: Ernestilla, Mafita & Company Advocates via Mondaq, 4 Jun 2025. Accessed 13 Oct 2026.
• Zi-JUMP labour management procedures: Revolutionary Government of Zanzibar, March 2024. Accessed 13 Oct 2026.
• Zatra fee register lines F0176 to F0180, F0276, F0278, F0281 and F0452: Tanzania Government Fees 2026, fees at 26 Sep 2026. Accessed 13 Oct 2026.

Figures to confirm before you act

• 2025 amendments: the Labour Laws (Amendments) Act, 2025 text was not opened; law firm notes report no change to ss.18 to 27
• Night premium base: s.21(4) says 5 percent of basic wage for each hour worked at night; we apply it to the hourly basic wage
• Public holiday pay: whether double pay is on top of the monthly salary or includes it; the example uses the cautious reading
• NSSF on overtime: whether overtime is contributory wage under the NSSF Act; confirm with NSSF
• Cap. 300 penalties: taken from the 2019 consolidation; later amendments were not checked
• Zanzibar: the Employment Act No. 11 of 2005 was read as enacted; amendments, the s.63(8)(c) cross-reference and the two night definitions need Zanzibar advice
• Public holiday list: confirm each year's official calendar, including Eid dates and days declared under s.3
• Sector rules: wage orders and collective agreements may set better rates

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.