Global HR Compliance in Tanzania

Hiring in Tanzania can be an opportunity for global employers seeking to expand or access unique regional expertise. But without local knowledge and compliant infrastructure, companies risk penalties, misclassification, and inefficiencies.

This guide outlines how to legally hire, pay, and manage employees in Tanzania, and how Acumen Global Employer of Record solution can support your workforce needs without establishing a local entity.

Why Hire Talent Internationally

Companies expand hiring into Tanzania primarily to:

• Establish a Local Presence: Employing local talent enables companies to operate within the market and engage clients, partners, or suppliers more effectively.
• Secure Specialised Talent: In fields such as agritech, logistics, and infrastructure, Tanzanian professionals may offer regional knowledge or cost-effective expertise not readily available in a company’s home market.

Country Guide: Hiring and Firing Workforce in Tanzania

Employment Contracts

Employment may be agreed for a definite or indefinite term, or for a specific task. Employment contracts must include essential terms: worker and employer details, job description, contract type, remuneration, benefits, working hours, place of work, and other statutory clauses. All terms must be explained clearly and updated in writing if they change.

Fixed-term contracts must last a minimum of 12 months for professional or managerial roles. If employment continues after contract expiry without a new agreement, terms remain in force.

Termination and Severance

Employers may terminate employment due to:

• Misconduct
• Incapacity or incompatibility
• Operational requirements (retrenchment)
• Participation in an illegal strike

Termination must follow fair procedure and justification. Mutual termination is also allowed by agreement between both parties.

Severance pay is mandatory if the employee has at least 12 months of service and is terminated by the employer. The minimum is seven days’ basic wage per completed year of service, capped at ten years.

Unlawful Grounds for Dismissal

Dismissals are not allowed on the basis of:

• Trade union membership or activity
• Pregnancy or parental status
• Disability
• Whistleblowing or refusal to carry out unlawful tasks
• Lawful exercise of rights under labour legislation.

Notice Periods

Minimum notice depends on the employment type:

• 7 days if within the first month
• 4 days for daily/weekly contracts
• 28 days for monthly contracts

Notice must be given in writing, stating termination reasons. Employers may offer pay in lieu of notice. If an employee refuses to work during notice, equivalent pay can be deducted.

Statutory Benefits and Conditions

Working Hours and Overtime

Standard limits:

• 6 days per week
• 45 hours weekly
• 9 hours daily
• No more than 12 hours in a day including overtime

Overtime must be agreed in writing and is capped at 50 hours in a 4-week cycle. Overtime is paid at 1.5x the basic hourly rate.

Annual Leave

Employees are entitled to a minimum of 28 consecutive days of paid leave per 12-month cycle, including public holidays. Leave must be taken within 6–12 months of entitlement and paid in advance.

Sick Leave

After six months of service, employees qualify for 126 days of sick leave per cycle:

• First 63 days at full pay
• Next 63 days at half pay

Seasonal workers or those with repeat contracts may also qualify.

Maternity and Paternity Leave

Maternity leave:

• Begins up to 4 weeks before the due date
• Lasts at least 84 days
• Employees cannot return earlier than 6 weeks postpartum unless cleared medically
• Paid leave is required, and reinstatement on equal terms is guaranteed

Paternity leave:

• Three days’ paid leave within seven days of the child’s birth

Probation

Probation is not formally defined but inferred from employment law. Workers with less than six months of service may not claim unfair dismissal, implying a six-month informal probation threshold.

Minimum Wage and Sectoral Pay

Minimum wage levels in Tanzania vary by sector. Categories include:

• Health, education, and energy services
• Mining, agriculture, and fishing
• Construction, transport, and trade
• Domestic work and security

Employers must refer to the latest wage orders applicable to their sector.

How Acumen International Can Help You Hire in Tanzania

Direct Employment Without a Local Entity
We act as your legal employer in Tanzania, allowing you to onboard staff compliantly without opening a subsidiary. You direct day-to-day work—we handle legal employment.

Local Compliance, Centrally Managed
We align your employment practices with Tanzanian laws, including overtime, leave, and statutory benefits. You avoid compliance risks while retaining full control of performance and output.

Custom Support for Complex Hiring
Whether you need to onboard field engineers or manage compensation for commission-based reps, we adapt to your structure while ensuring every contract meets Tanzanian legal standards.

Global Mobility Support
We assist with work permit sponsorship for expatriates, ensuring compliant and timely onboarding. Our immigration partners manage documentation, renewals, and eligibility.

Hiring Budget Planning with Our Payroll Calculator
Use our Global Payroll Calculator to plan your hiring costs in Tanzania. Simulate employer contributions, taxes, and employee net pay before making hiring decisions.

One Partner Across 190+ Countries
Acumen International enables you to expand with consistent hiring infrastructure, one point of contact, and globally compliant workforce management.