International Workers’ Day 2018 marked in Tanzania

The President of the United Republic of Tanzania, H.E. Dr. John Pombe Magufuli, graced the May Day celebrations in Iringa, Tanzania on 01 May 2018. In his speech, he confirmed to the workers, who flocked the grounds, that the government has already enacted the public service social security Act 2018, which paves the way to merging five pension schemes into two - the Public Service Security Fund (PSSSF) for the public sector and the National Social Security Fund (NSSF) for the private sector.

Dr. Magufuli reiterated to the workers that his Government’s priority currently is to implement major development projects including – railway construction, hydroelectric power stations, purchase of aircrafts and upgrading of airports at various regions and not to raise salaries.

“ … I intend to allocate sufficient funds for these mega development projects and increase salaries later before the end of my tenure … the projects will create direct employment to more than 52,000 Tanzanians…” he said.

He also commended the private sector for creating more than 582,000 jobs since 2016, making the total number of jobs created to be about 3 million. He further added that the government continues to improve workers’ welfare including provision of annual salary increments and payment of salary and other stipends, and promotions to those eligible, as the exercise for cleansing of ghost and unqualified workers continue. Todate more than TZS 220 bil. has been paid to the workers as outstanding salary and other areas.

Speaking at the same occasion, the Minister, PMO, policy, Parliament Affairs, Labour, Employment Youth and the disabled, Ms. Jenister Mhagama hailed the ILO for supporting the Government on various areas including social protection, youth employment, and labour laws, and confirmed that the Government is already working on ratification of some of the key conventions. She pledged for stronger collaboration between workers, employers and the Government.

On his part the TUCTA Secretary General, Dr. Yahya Msigwa applauded the enactment of the above social security Act, saying that this will not only help in trimming down the operational costs and facilitate in the management of the social security sector in the country but also lead to lucrative packages for retirees.

He also commended the Government for its efforts in cleansing the ghost workers from the Government payroll, combating corruption, and fast tracking of various infrastructural projects. He urged the Government to reduce Pay As You Earn (PAYE) taxes, which currently stand at 30 – 40%, and reviewing the minimum wage for public and private sector workers upwards.

The Director ILO country Office for Tanzania, Kenya, Uganda, Rwanda and Burundi, Mr. Wellington Chibebe, commended the Tanzania Government, workers and employers for their great efforts in making Decent work a reality especially in improving working conditions for workers and in creating new jobs. He added that,

As regards this year’s national theme “Public Service social security Act to benefit all workers” Mr. Chibebe said, it is at the core of the ILO’s mission in the world of work as it contributes enormously to making work decent, noting that social security is a social and economic necessity in com­bating poverty and social exclusion.

“… Globally, only 20 percent of the population has adequate social security coverage and more than half lacks any kind of social security protection at all; the Act has therefore come at the right time for all of us to take action…” he added.

He also stated that, the ILO has established, since 2012, a strategy for addressing the challenge of extending social security coverage to all and further developing and maintaining comprehensive social security systems; aimed at building the systems in line with national priorities and resources.

“…We therefore welcome the enactment of the new Public Service Social Security Act, 2018, which augurs well with the above strategy, as we see it as a key step in the national endeavor of making social security work for the benefits of working women and men in Tanzania…” he concluded.