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Payroll in Tanzania
Payroll in Tanzania runs in TZS on a monthly payroll cycle is standard. cycle, with statutory employer contributions and no universal statutory 13th-month bonus is mandated under the employment and labour relations act.. Gracemark operates it end-to-end, humans, not tickets.
Currency
TZS, Tanzanian shilling
Payroll cycle
Monthly payroll cycle is standard.
Working week
Standard workweek is 45 hours under the Employment and Labour Relations Act, with overtime paid at a premium.
Minimum wage
Sector-specific minimum wages are set under the Labour Institutions (Minimum Wage for Private Sector) Order, with a new Order (Government Notice No. 605A of 2025) coming into force from 1 January 2026 [1](https://www.kazi.go.tz/uploads/documents/en-1760702541-GN%20605A-THE%20LABOUR%20INSTITUTIONS%20(MINIMUM%20WAGE%20FOR%20PRIVATE%20SECTOR)%20ORDER,%202025%20(5).pdf)
13th-month
No universal statutory 13th-month bonus is mandated under the Employment and Labour Relations Act.
Employer cost
Employers contribute to the National Social Security Fund (NSSF or PSSSF depending on sector) and Workers Compensation Fund and Skills Development Levy, together commonly totaling around 15-20% of gross payroll.
Probation
Probation period is commonly up to 12 months under the Employment and Labour Relations Act, though shorter periods are typical by contract.
Notice period
Notice periods and severance pay depend on grounds and tenure under the Employment and Labour Relations Act, with severance generally required for termination other than for serious misconduct.
Two ways to run payroll in Tanzania
Own-entity payroll
For long-term presence in Tanzania. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Eastern Africa time.
EOR-run payroll
No entity in Tanzania? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.
Compliance essentials in Tanzania
- Employment model: EOR vs. contractor vs. local entity for Tanzania
- Mandatory benefits, social contributions and any 13th-month obligation
- Termination rules, statutory notice and severance exposure
- Contractor misclassification risk and how local law defines employment
- Currency (TZS), payroll cycle and English-language contract requirements
Get a payroll quote for Tanzania
Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.
Deeper guide
Hiring guide: Tanzania →
Employ without entity
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