Tanzania, United Republic of - Minimum Wages - 2011

15 December 2011

Employment and Labour Relations Act 2004, Act 6 of 2004, dated 4 June 2004. Published by the Parliament of Tanzania at http://www.parliament.go.tz/Polis/PAMS/Docs/6-2004.pdf and accessed 14 December 2011.

Labour Institutions Act 2004, Act No. 7 of 2004, dated 4 June 2004.

Regulation of Wages and Terms of Employment Order 2010, Government Notice No. 172 published on 30 April 2010 in the Gazette of the United Replublic of Tanzania - Subsidiary Legislation Supplement No. 16.

Employee means an individual who:
(a) has entered into a contract of employment; or
(b) has entered into any other contract under which -
(i) the individual undertakes to work personally for the other party to the contract;
(ii) the other party is not a client or customer of any profession, business, or undertaking carried on by the individual.

Employer means any person, including the Government and an executive agency, who employs an employee.

Remuneration means the total value of all payments, in money or in kind, made or owing to an employee arising from the employment of that employee.

Basic wage means that part of an employee’s remuneration paid in respect of work done during the hours ordinarily worked but does not include:
(a) allowances, whether or not based on the employee’s basic wage;
(b) pay for overtime worked;
(c) additional pay for work on a Sunday or a public holiday; or
(d) additional pay for night work.

The Minister may appoint a wage board with respect to any sector and area to investigate remuneration and terms of employment in any sector and area and shall report to the Minister on its findings and recommendations.

A wage board shall consist of:
(a) a Chairperson;
(b) a member nominated by the members of the Labour, Economic and Social Council who represents the interests of employees; and
(c) a member nominated by the members of the Labour, Economic and Social Council who represents the interests of employers.

When conducting an investigation on minimum remuneration and other conditions of employment, a wage board may:
(i) question any person who may be able to provide information relevant to any investigation;
(ii) require, in writing, any person to furnish any information, book, document or object that is material to the investigation;
(iii) conduct public hearings; and
(iv) facilitate negotiations on a minimum remuneration and conditions of employment between registered trade unions, employers and registered employers’ associations in the sector.

On completion of its investigations and after considering all representations made to it, a wage board shall prepare and submit a report to the Minister, which shall consist of the board’s findings and its recommendations on minimum wage for the sector and area and on any term and conditions of employment particular to that sector or area. However, if as a result of any facilitation of negotiations on the part of the wage board, the registered trade unions, employers and registered employers’ associations in the sector conclude a collective agreement on the minimum wage and any particular conditions of employment, the board shall recommend the extension of the agreement to all employers and employees in the sector and area if the parties to the agreement are sufficiently representative (and may do so, even if they are not).

After considering the report and recommendations of the wage board, the Minister may make a wage order determining the minimum wage and other conditions of employment for employees in any sector and area of the economy in accordance with the recommendations, by notice in the Gazette and with effect from a specified date.

If the Minister does not accept the recommendation of a wage board, the Minister may refer the recommendation back to the board for its reconsideration, indicating the matters on which the Minister disagrees with the board. If the Minister does not make a wage order within 60 days of receipt of the board’s report, or decides not to make a wage order on the basis of the board’s recommendations, the Minister shall table the report and recommendations to the National Assembly within 14 days and attach reasons for not making an order.

In any investigation, the wage board shall take into account all relevant factors, including the minimum subsistence level and the alleviation of poverty.

In any investigation, the wage board shall take into account all relevant factors, including the cost of living.

In any investigation, the wage board shall take into account all relevant factors, including:
(a) the remuneration and terms and conditions of employment of employees employed in the East African Community Sector; and
(b) any collective agreements providing for remuneration and terms and conditions of employment in the sector.

In any investigation, the wage board shall take into account all relevant factors, including the operation of new enterprises and small, medium and micro-enterprises.

In any investigation, the wage board shall take into account all relevant factors, including the likely impact of any proposed conditions of employment on current employment or the creation of employment.

In any investigation, the wage board shall take into account all relevant factors, including the ability of employers to carry on their businesses successfully.

In any investigation, the wage board shall take into account:
(a) articles 22 and 23 of the Consitution of the United Republic of Tanzania;
(b) any applicable Convention or recommendation of the International Labour Organization, whether or not the United Republic of Tanzania is a signatory to the convention;
(c) all representations and other information submitted to it; and
(d) any other relevant matter.

The minimum wage order applies to all employees, notwithstanding whether they are employed in the service of the United Republic, Local Government Authorities or are members of the Teacher Service Commission.

Any provision of a wage order may apply to all or some of the employers and employees in the sector and area concerned.

Separate minimum wage rates are set for the following sectors:
(i) Health services
(ii) Agricultural services
(iii) Commerce, industrial and trading
(iv) Transport and Communication
(v) Mining
(vi) Marine and fishing
(vii) Domestic services
(viii) Hotels
(ix) Private security

A wage order may specify minimum conditions for trainees.

The minimum wage for domestic workers shall be 65,000 shillings per month (higher if employed by entitled officers - 80,000 shillings - or diplomats or potential businessmen - 90,000 shillings).

Where domestic workers who live and share food and other services with the employers shall have 68% of their wages deducted for the services provided.

A wage order may regulate contract work and home work.

A wage order may regulate task-based work and piece-work.

The general minimum wage rate (i.e. payable to employees not employed in sectors for which specific minimum wage rates are set) is 385 shillings per hour and 80,000 shillings per month.

30 April 2007

An employer shall pay to an employee any monetary remuneration to which the employee is entitled during working hours at the place of work on the agreed pay day and in cash, unless the employee agrees otherwise.

The Minister may by regulations provide for the partial payment of remuneration in the form of allowance in kind, but in no case alcoholic beverages or noxious drugs, in industries or occupations in which payment in the form of such allowance is customary or desirable, and any such allowance in kind shall be for the personal use of the employee and his or her family, and the value attributed to such allowance shall be fair and reasonable.

Remuneration shall be due and payable at the end of contract period provided the employer may pay an advance before the due day on a mutually agreed day and, if such day is not agreed, at least once on completion of half the contract period.

No relevant provisions identified.

For the purposes of the administration of labour laws, a labour officer may enter any premises and search for and examine, seize, take samples etc of relevant information, book, document or objects. A labour officer may also:
(i) require a person to appear for questioning or to provide information, books, documents or objects over which the person has control;
(ii) institute proceedings in the Resident’s or District Court in respect of any contravention of any labour law; and
(iii) issue compliance orders, where he has reasonable grounds to believe that an employer has not complied with a provision of the labour laws.

Every employer shall retain a record of the following information pertaining to an employee for a period of five years after the termination of that employee:
(a) name, age, permanent address and sex of the employee;
(b) place of recruitment;
(c) job description;
(d) date of commencement;
(e) form and duration of the contract;
(f) place of work;
(g) hours of work;
(h) remuneration rate, the method of its calculation, and details of any benefits or payments in kind; and
(i) any remuneration paid to the employee.

Any person convicted of failing to pay remuneration due in the form and fashion required by the Employment and Labour Relations Act, or for making unlawful deductions from the employee’s remuneration, shall be sentenced to a fine not exceeding one million shillings.

No relevant provisions identified. However, any worker who has been paid wages below the prescribed minimum wage may apply to the District Court or Resident Magistrate’s Court for recovery of the amount by which the worker was underpaid.