hire in Tanzania

Tanzania Employer of Record (EOR)

SALARY PAYMENT IN Tanzanian Shilling (TZS)

CONTRACT LANGUAGE English & Arabic

PAYROLL TAX 15.00%

PAYROLL CYCLE Weekly or monthly

TIME TO HIRE 24 hours
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Hire in Tanzania, without an entity

Through the Horizons Employer of Record (EOR) solution, an international business can hire employees in Tanzania — in full compliance with local tax and labor laws. The Horizons Tanzania EOR solution means that Horizons takes on the employment compliance responsibilities for your Tanzania-based team, leaving you to focus on core business.

By engaging a Tanzania EOR solution, you save time and money, and guarantee full compliance with local laws.

Our Tanzania EOR makes it easy to hire in Tanzania

Through Horizons, international companies can legally hire in Tanzania — without the need for an expensive local subsidiary.

Fast Hire

Through the Horizon EOR solutions, new employees in Tanzania can be hired, with onboarding initiated, within 24 hours.

Legal & HR Team in Tanzania

Experts in Tanzania labor and employment tax law ensure you are fully compliant with all applicable laws.

Payroll

Horizons ensures accurate salary and payroll processing for all Tanzania-based employees. The Horizons EOR platform makes income tax withholding and expense management easy.

Onboarding

Horizons ensures that all Tanzania-based employees are welcomed onboard with compliant labor documentation and contracts.

Stay Compliant

Horizons ensures that employment in Tanzania is compliant, and deals with any legal and compliance issues as they arise.

Cost Savings

With a Tanzania EOR solution, you save up to 85 percent of the total cost of hiring in Tanzania.

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What is a Tanzania EOR?

Tanzania is an ideal location for many international companies seeking to hire in Africa. It is one of the most prosperous countries in Africa, with a population of 60 million, and rated the second most popular African location for wildlife tourism. A powerful mechanism for global companies seek to hire employees in Tanzania is a Tanzania EOR solution. A Tanzania EOR solution allows international companies to legally hire employees in Tanzania without having to establish a subsidiary or branch office in the country. The EOR acts as the legal employer of the employees and is responsible for compliance with all local labor laws and regulations, including obtaining necessary permits and licenses, withholding and remitting taxes and social security contributions, and providing employee benefits. In practice, the EOR solution acts as an intermediary between the foreign company and the employees, handling all aspects of the employment relationship. The foreign company retains control over the employees’ job duties and performance, but the EOR is responsible for complying with local employment laws and regulations. This solution is particularly useful for companies looking to expand into Tanzania but, who are unsure of how to navigate the country’s legal and compliance requirements. It allows companies to focus on their core business activities while the EOR handles the administrative and compliance aspects of the employment relationship. A Tanzania EOR solution is similar to a Tanzania PEO, with the difference being that an EOR solution is the specific practice of a third party company taking on the legal responsibilities and liabilities of the employer. A Tanzania PEO usually offers an EOR solution alongside other HR services such as recruitment and visa support.

What are the benefits of a Tanzania EOR?

There are several benefits of using an Employer of Record (EOR) solution in Tanzania.

First, it ensures compliance with local laws and regulations. The EOR ensures compliance with all local labor laws and regulations, including obtaining necessary permits and licenses, withholding and remitting taxes and social security contributions, and providing employee benefits. This helps to mitigate the risk of non-compliance and potential fines or penalties.

Second, it reduces the administrative burden on international companies. The Tanzania EOR handles all aspects of the employment relationship, including recruiting, hiring, and managing employees, reducing the paperwork and administrative tasks that would otherwise fall on the client company.

Third, it provides flexibility. An EOR solution allows companies to expand into Tanzania quickly and easily, without the need to establish a subsidiary or branch office. This flexibility allows companies to enter the market quickly, test the waters, and adjust their strategy as needed.

Fourth, it provides cost savings. An EOR solution is significantly less expensive than establishing a subsidiary or branch office in Tanzania. Additionally, the EOR is responsible for providing employee benefits, which can be costly for foreign companies.

How does a Tanzania PEO help businesses hire employees?

A Tanzania EOR is an HR and payroll compliance expert. They have an in-depth understanding of local employment and tax laws, and become legally responsible, and take on liabilities, with respect to employment compliance

A Tanzania EOR provides compliant draft employment contracts (in either English or Swahili), offers ad hoc advice on legal and compliance matters, and takes on a range of legal duties.

Specifically, a Tanzania EOR ensures compliance in some of the legal areas specified below.

Leave administration and public holidays in Tanzania

A Tanzania EOR administers benefits for all Tanzania-based staff. This means leave management, as well as pension contributions, healthcare and various other social contributions.

When it comes to paid vacation, employees in Tanzania received 21 days paid annual leave. In addition to this are several paid national holidays in Tanzania. These are:

Holiday Schedule in Tanzania [2024]

Tanzania has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan Monday	New Year’s Day
12 Jan Friday	Zanzibar Revolution Day
29 Mar Friday	Good Friday
1 Apr Monday	Easter Monday
7 Apr Friday	Karume Day
10 Apr Wednesday	Eid el Fitri (Tentative Date)
11 Apr Thursday	Eid el Fitri Holiday (Tentative Date)
26 Apr Friday	Union Day
1 May Wednesday	Worker’s Day
17 Jun Monday	Eid al-Adha (Tentative Date)
7 Jul Sunday	Saba Saba
8 Aug Thursday	Farmers’ Day
16 Sep Monday	Maulid (Tentative Date)
14 Oct Monday	Mwalimu Nyerere Day
9 Dec Monday	Republic Day
25 Dec Wednesday	Christmas Day
26 Dec Thursday	Boxing Day

Note also that there are some regional or local holidays that are only celebrated in certain parts of Tanzania.

Parental, paternity and maternity leave in Tanzania

The legal requirements for parental leave in Tanzania are outlined in the Employment and Labor Relations Act 2004. This specifies that female employees are entitled to a minimum of 90 days maternity leave. This covers leave both prior to and after delivery. Male employees are entitled to at least 14 days of paternity leave.

During paid parental leave, all employees are entitled to receive their full salary or wages.

As well as the statutory minimum leave entitlements, many Tanzania employers offer additional leave or benefits to those seeking to take parental leave.

Employer pension contributions in Tanzania

The National Social Security Fund Act (NSSF) specifies that employers and employees are required to make compulsory contributions to this fund. The NSSF requires contributions for retirement benefits, survivor benefits, and disability benefits for all employees. There is an exception to this requirement for employees covered by other schemes. The NSSF requires employers to pay 10 percent of gross salary/wages into the fund, while employees are required to pay 10 percent, resulting in a total contribution of 20 percent. If an employee fails to make the required employer contributions, or fails to withhold the required employee contributions on thee behalf of employees, they will be liable for fines and penalties.

Income tax withholding in Tanzania

PAYE (Pay As You Earn) is the name given to employee income tax withholding in Tanzania. This system is administered by the Tanzania Revenue Authority (TRA). Under the PAYE system, employers are required to deduct income tax from their employees’ salaries or wages on a monthly basis and remit the tax to the TRA.

The PAYE tax rates in Tanzania are progressive, meaning that the tax rate increases as an employee’s taxable income increases. The tax rates for the current tax year (2022/23) are as follows:

Handling payroll setup and registration. Once incorporation is complete, we transition employees from their current employment status – under our PEO – into that of your company.
Overseeing the same benefits your company has been providing to your foreign employees under the ownership of your new subsidiary.
Gathering local employment contracts and legally mandated materials for the establishment of your new entity.
Strategic guidance in matters concerning contract negotiations with employees

There is a special tax credit, also known as a personal allowance, available for some employees as a deduction from their taxable income. The tax credit for the current tax year (2022/23) is TZS 480,000.

Note, it is important that employers correctly withhold and remit PAYE in order to protect themselves from serious fines or other penalties from the TRA.

Healthcare and health insurance in Tanzania

Tanzania recognizes no legal requirement for employers to provide health insurance to their employees, though employers may offer it voluntarily. Note, however, that as part of the NSSF, limited health benefits are available.

It is also worth noting that employees may be able to access insurance through the National Health Insurance Fund (NHIF) — a statutory body that provides health insurance to workers in Tanzania not otherwise covered by an employer-provided plan. Currently, contributions to this fund are required for some employees (e.g. public sector) but not all.

Hire through a Tanzania EOR

Tanzania Employer of Record (EOR) solutions take the stress out of hiring employees in Tanzania. Through an EOR solution, any company, anywhere in the world can hire employees in Tanzania, quickly and cost-effectively.

FAQs

Is a Tanzania EOR the same thing as a Tanzania PEO?

A Tanzania EOR hires employees on behalf of your company and ensures full compliance with local employer and tax laws. A Tanzania PEO usually provides an EOR solution, but often offers other HR services such as visa support, recruitment, and HR advisory services.

Should I hire through a Tanzania EOR solution?

A Tanzania EOR solution is a good way of ensuring that your hiring in Tanzania is legally compliant, without the cost and hassle of setting up a local subsidiary or branch.