Employment taxes

• Income tax is progressive, ranging from 0% to 30%, depending on your salary level
• Income tax is withheld monthly by the employer
• Employees contribute social security, usually around 10% of gross salary, depending on the scheme.

Leave policy

• Annual leave: 28 days per year after one year of service.
• Public holidays: 16 national public holidays.
• Sick leave: Up to 126 days in a 36-month period (first half fully paid, second half partially paid). Sick leave beyond 126 days in a cycle may be unpaid.
• Maternity leave: 84 days paid (100 days for multiple births), paid by the employer
• Paternity leave: 3 days paid

Employment termination

• Legal grounds include misconduct, poor performance, redundancy, or mutual agreement
• Notice period depends on the contract, but is commonly 28 days
• Severance pay applies in redundancy cases and is typically 7 days’ wages per completed year of service.
• Final payments must include outstanding salary, unused leave, and statutory entitlements

Hiring and contracts

• Common contract types: fixed-term and indefinite (open-ended) contracts
• Contracts should be written in English or Swahili
• A valid contract must include job title, duties, salary, working hours, leave, notice period, and termination terms
• Probation period is usually up to 6 months
• Written contracts are mandatory for employment

Payroll and salary payments

• Salaries are paid monthly
• Payments are made in Tanzanian Shilling (TZS)
• National minimum wage varies by sector. The average minimum wage in 2025 is TZS 60000.00 (EUR 20/ USD 24)
• Payslips are mandatory and must include gross salary, deductions, net pay, and employer details

Benefits

Mandatory:

• Social security contributions
• Workers’ compensation insurance
• Statutory leave entitlements

Optional:

• Private health insurance
• Housing or transport allowance
• Mobile phone and data allowance
• Performance bonuses

Monthly living cost (Dodoma Edition)

• Rent (1-bedroom apartment): TZS 250,000 outside the city center (city center is typically higher)
• Utilities (electricity, water, gas): TZS 80,000-150,000
• Internet + mobile data: TZS 60,000-120,000
• Groceries: TZS 250,000-450,000
• Monthly transport (local commuting + occasional taxi): TZS 40,000-100,000
• Coffee, dining, going out: TZS 100,000-250,000 (depends on your habits)

How to get a local ID number

• Residents and employees receive a Taxpayer Identification Number (TIN)
• The TIN is issued by the Tanzania Revenue Authority (TRA)
• Your employer usually assists with the application
• Remote workers may need a TIN if earning locally or employed through a local entity

Social security registration

• Employees must be registered with a social security fund such as NSSF or PPF
• Registration is handled by the employer
• Contributions are split between employer and employee

Banking

• Opening a bank account is straightforward with a residence permit and TIN
• Popular banks include CRDB Bank, NMB Bank, Stanbic, Absa, and Standard Chartered
• Mobile money (M-Pesa, Airtel Money, Tigo Pesa) is widely used and incredibly convenient

Housing and rental process

• Most rentals require 3-6 months’ rent upfront
• Lease agreements should be written and signed by both parties
• Tenants have the right to peaceful use of the property and proper notice before eviction
• Repairs related to structural issues are usually the landlord’s responsibility

Healthcare system

• Public healthcare is affordable but basic
• Private hospitals and clinics offer higher standards and shorter waiting times
• Expats typically rely on private health insurance
• Major private hospitals are available in Dar es Salaam and Zanzibar

Driving and public transport

• Driving is possible with a local or converted driving license
• Public transport includes buses (dala-dala), taxis, and ride-hailing apps
• Ride-hailing is affordable and widely used in cities

Emergency and important contacts

• Police: 112
• Ambulance: 114
• Fire brigade: 115

Work permit and visa requirements

• Foreign nationals must obtain a work permit before starting employment in Tanzania.
• Before applying for work permit, you need to obtain an appropriate entry visa to enter Tanzania.
• The legal employer acts as the sponsor and submits the work permit application. Class B or Class C work permits are most commonly used for skilled foreign employees. Work permits are usually issued for 1-2 years and are renewable
• After arrival, you obtain a residence permit.

Business culture and work norms

• Relationships matter more than speed
• Respect for hierarchy and seniority is important
• Meetings often start with small talk and relationship-building
• English is widely used in business, Swahili adds instant connection
• Patience, adaptability, and openness go a long way