When you begin considering an expansion to Tanzania, you may view compensation and benefits as an afterthought. However, creating a strong benefits plan and meeting Tanzania’s compensation laws should be one of the first things you do. Putting together these benefits before even interviewing employees will show them that you’re committed to their success with your company.
Globalization Partners can help you stay compliant and give employees the benefits they deserve through Tanzania compensation and benefits outsourcing. We’ll add your employees to our existing infrastructure, ensuring that they get paid and you meet Tanzania’s benefits regulations. Because you won’t need to establish your own entity, you can begin working in a day or two with our team by your side.
Tanzania Compensation Laws
Tanzania’s compensation laws include a minimum wage that changes based on the various employment sectors. It can range anywhere from 40,000 to 400,000 Tanzanian shillings per month. However, the minimum wage last changed in 2018, so it could be updated again soon. Trade unions do exist in Tanzania, so you should always check to make sure your sector doesn’t have another minimum wage requirement.
What Benefits Are Guaranteed in This Country?
All employees are guaranteed at least 28 consecutive days of annual leave, including time off for Tanzania’s public holidays, after working at least six months. Tanzania also has a generous sick leave policy. Employees should get at least 126 days of sick leave — 63 days paid at full wages and another 63 paid in half wages.
Female employees have the right to take at least 12 weeks of maternity leave. However, they need to inform you as the employer and provide a medical certificate at least three months before they’re set to take the leave. Employees cannot return to work for at least six weeks after the birth of a baby unless cleared by a doctor.
Successfully Dispersing Benefits
While the law dictates that you must give out statutory benefits, whether you give out market norm benefits is entirely up to you. We recommend providing these supplemental benefits to show employees you want them to succeed and have long careers with your company. Some different benefits you can choose to give out include:
- Paid parental leave
- Private health insurance plans
- Stipends for a car, a phone, health insurance, housing, or education
- Additional paid time off
- Performance-based bonuses
Restrictions for Compensation and Benefits in Tanzania
Your employees cannot get paid or receive benefits until you have a subsidiary that provides the appropriate infrastructure. This restriction can turn into a significant drain on your resources, however, as you need to spend time and money to get a subsidiary up and running. Fortunately, Globalization Partners makes it easier and faster for companies to expand. Our Tanzania compensation and benefits outsourcing services will help you pay employees and give them benefits without worrying about compliance.
Globalization Partners Will Help You Follow the Right Laws
Trust Globalization Partners to help you do your best work in Tanzania. Contact us today to learn more about Tanzania benefits and compensation outsourcing.