FMC Group services banner

Employee Leasing in Tanzania

Tanzania, with its strategic location in East Africa and its participation in regional trade agreements like the East African Community, presents compelling business prospects for companies seeking to establish a presence in the region. Boasting a quickly developing consumer market and a favorable business environment, Tanzania stands as an attractive destination for expansion.

For businesses eyeing entry into the Tanzanian market, employee leasing can provide a swift and efficient route. FMC Group offers comprehensive employee leasing solutions, enabling companies to engage local talent without the complexities of establishing a subsidiary. This approach empowers businesses to focus on their core growth strategies while avoiding the intricacies of day-to-day employee management. Thus, tapping into Tanzania’s economic potential becomes a streamlined and quick process, facilitating fluid market entry and business development.


  • Advantages of Employee Leasing in Tanzania
  • Employee Leasing Services Offered by FMC Group
  • Advantages of the Tanzanian Market
  • Recruitment in Tanzania
    • Minimum Wage and Payroll
    • Social Contributions and Taxes
    • Working Hours and Overtime
    • Vacation Days
    • Parental Leave and Sick leave
    • Notice Period
company logo of FMC Human Resources

Get in touch with us

Alp Atasoy

Sales and Business Development Consultant

 flag for Turkish language flag for English language flag french
+90 549 499 40 95

Advantages of Employee Leasing in Tanzania

  • Expanding activity into Tanzania through employee leasing allows clients to save considerable expenses on recruitment, training, and payroll administration costs.
  • FMC Group provides businesses wishing to enter the Tanzanian market with access to a large pool of skilled professionals who are very familiar with the local market.
  • Through employee leasing, businesses can easily scale their workforce up or down based on their current needs, without going through the process of hiring or laying off employees.
  • FMC Group handles all legal compliance issues with Tanzanian authorities, nullifying the clients’ risk of non-compliance.

Employee Leasing Services Offered by FMC Group

  • Candidate selection tailored to the client’s specific needs and criteria.
  • Recruiting top candidates following client approval and negotiating employment contracts.
  • Administering payroll in alignment with international standards.
  • Handling social contributions and taxes in compliance with Tanzanian labor laws.
  • Managing other expenses and allowances on behalf of the client.
  • Tracking paid leaves and employee vacations as per contractual agreements.
  • Arranging and managing private insurance for employees upon request.
  • Maintaining regular communication with the client regarding employee management.

Management and Reporting Flow of Employee Leasing Services

Management and Reporting Flow Chart

Advantages of the Tanzanian Market

  • Tanzania’s strategic location makes it an ideal hub for regional trade. It serves as a gateway to the East African Community market, providing access to over 170 million consumers. Its proximity to landlocked countries offers logistical advantages for trade and investment. The Port of Dar es Salaam, one of the largest ports in East Africa, serves as a key entry point for goods destined for neighboring landlocked countries like Zambia, Malawi, and the Democratic Republic of Congo.
  • Tanzania has experienced stable economic growth in recent years, driven by sectors such as construction, telecommunications, and tourism. The country has averaged 5.7% annual GDP growth over the past decade. Investors can benefit from its growing consumer market and a stable investment environment.
  • The Tanzania government offers various incentives to attract foreign investment, including tax exemptions, investment guarantees, and streamlined bureaucratic procedures. Foreign companies are also allowed to repatriate profits earned from their business in Tanzania freely.
  • Entering the Tanzanian market provides diversification opportunities for companies looking to expand their business beyond traditional markets. The country’s diverse economy and emerging sectors offer the potential for high returns and long-term growth. IT and digital services are among the rapidly emerging sectors in Tanzania, thanks to the expansion of mobile and internet connectivity.
  • Tanzania has been investing in infrastructure projects such as roads, ports, airports, and energy facilities. These developments have helped improve connectivity, reduce logistical costs, and enhance the business environment. For instance, the ongoing construction of the Standard Gauge Railway will improve transportation connectivity between Tanzania and neighboring countries, such as Rwanda, Uganda, and Burundi, significantly reducing transportation costs for businesses operating in the region.
  • Further details about the advantages of the Tanzanian market are provided by the Tanzania Investment Centre.

Recruitment in Tanzania

Minimum Wage and Payroll

  • The monthly minimum wage in Tanzania varies depending on the industry. It ranges from TZS 40,000 (EUR 14.6) to TZD 400,000 (EUR 146).
  • The payroll cycle in Tanzania is generally managed on a monthly basis, with salaries paid on the last working day of each month. It is also common for employees to be paid weekly or every two weeks.

Social Contributions and Taxes

Employer Contributions
National Social Security Fund 10.0% – 20.0%
Skills Development Levy (if 10 employees or more) 3.5%
Workers Compensation Fund 0.5%
Total 10.5% – 24.0%
Employee Contributions
National Social Security Fund 0.0% – 10.0%
Employee Income Tax
For non-resident individuals 15.0%
For residents
Less than TZS 270,000 (EUR 98) per month 0.0%
Between TZS 270,000 and TZS 520,000 (EUR 98 – EUR 189) 8.0%
Between TZS 520,000 and TZS 760,000 (EUR 189 – EUR 277) 20.0%

+ TZS 22,500 (EUR 8)

Between TZS 760,000 and TZS 1,000,000 (EUR 277 – EUR 364) 25.0%

+ TZS 70,500 (EUR 26)

From TZS 1,000,000 (EUR 364) 30.0%

+ TZS 130,500 (EUR 47)


Working Hours and Overtime

  • Working hours in Tanzania cannot exceed 45 hours per week and nine hours per day.
  • Overtime pay is compulsory if the working hours limit is exceeded. It is paid at the rate of 150% of the regular salary on regular days and at 200% on public holidays.
  • Overtime work cannot exceed 50 hours in a 4-week period and the total number of hours worked in one day cannot exceed 12 hours.

Vacation Days

  • Employees in Tanzania are entitled to 28 days of annual paid vacation after they complete six months of service.
  • Tanzania celebrates 14 public holidays (16 days):
    • New Year’s Day: January 1st
    • Zanzibar Revolutionary Day: January 12th
    • Good Friday and Easter Monday: Between March and April (moveable)
    • Karume Day: April 7th
    • Union Day: April 26th
    • Labor Day: May 1st
    • Saba Saba Day: July 7th
    • Nane Nane Day: August 8th
    • Nyerere Day: October 14th
    • Christmas Holiday: December 25th – 26th
    • Eid al-Fitr (2 days), Eid al-Adha (1 day), and Mawlid (1 day): Varies according to the Islamic calendar (moveable)

Parental Leave and Sick Leave

  • Female employees in Tanzania are entitled to 84 months of fully paid maternity leave. The duration is extended to 100 days in the case of a multiple birth. The employee must give at least 3 months of notice to the employer before taking the leave.
  • New fathers are entitled to 3 days of fully paid paternity leave, to be taken within the first 7 days of the child’s birth.
  • Employees in Tanzania are entitled to 126 days of paid sick leave every 3 years. The first 63 days of the leave are paid at the full salary rate, while pay during the remaining duration is halved.

Notice Period

  • Employees in Tanzania wishing to resign have to respect a notice period varying between 1 and 3 months, depending on the employment contract.

Further Useful Information

Further information about the Tanzanian labor law can be found on the website of the Prime Minister’s Office for Labor, Youth, Employment and Persons with Disability

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.