How to hire remote employees in

Tanzania

If you’ve found someone in Tanzania that you’d like to hire remotely, you’re in the right place. In the next 5 minutes, we’ll teach you how you can legally hire remote talent in Tanzania—without dealing with huge fees and lengthy legal red tape.

Country snapshot

CURRENCY
Tanzanian Shilling (TZS)
EMPLOYER TAXES
15%
PAYROLL FREQUENCY
Daily/ Weekly / Bi-Weekly / Monthly
OFFICIAL LANGUAGE
Swahili and English

What to know before you hire in 

Tanzania

Laws about hiring are complicated. If your company hasn’t already established a physical presence in Tanzania, you have two real options when it comes to hiring. We’ll detail both below—and tell you which one most companies prefer.

If you want to successfully hire in 

Tanzania

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Tanzania

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Tanzania

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Tanzania

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Tanzania

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Tanzania

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Tanzania

?

If you’re hiring contractors in 

Tanzania

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Tanzania

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Tanzania

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Tanzania than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Tanzania.

Taxes in 

Tanzania

Employer tax

Skills Development Levy

Workers Compensation Fund

Individual tax

Leave

Paid Time Off (PTO)

In Tanzania,  the Employment and Labour Relations Act 2004 provides for annual leave on completion of a year of continuous service with an employer.

Employees who have been employed for at least 6 months are entitled to 28 days of consecutive leave per year inclusive of any public holidays that may fall during the period of leave.

The annual leave may be reduced by the number of days during a leave cycle, which are granted as paid occasional leave by the employer on worker's consent.

Public Holidays

There are 15 paid public holidays in Tanzania.

Sick Days

In accordance with Employment and Labor Relation Act 2004, every worker certified by a medical practitioner is entitled to paid sick leave (sickness benefit) for a period of 126 days in a leave cycle of 36 months.

The first 63 days of sick leave are paid at 100% of the regular salary and thereafter, 50% of the regular salary.  

In order to be entitled to sick leave and pay, the employee must provide a medical certificate.  

Maternity Leave

Female workers are entitled to at least twelve weeks (84 days) of fully paid maternity leave or 100 consecutive days (in case of multiple births) within a leave cycle of 36 months

A worker is entitled to 84 days paid maternity leave within a leave cycle if the newborn dies within a year of birth.

Paternity Leave

Employment and Labor Relations Act 2004 provides for paid paternity leave of at least 3 days (in a leave cycle of 12 months) for a new father if this leave is taken within the 7 days of the birth of a child.

The employer may require reasonable proof of birth of child prior to paying for paternity leave.

Parental Leave

There is no parental leave.

Other Leave

No Info.

Marriage Leave

The law does not have a specific provision for family/ social gatherings or activities of that type, but they can request some days off taken from their annual leave.

Bereavement Leave

Employees can request some days off taken from their annual leave.

Termination

Termination Process

Termination of employment can be initiated by any of the parties to a contract of employment. Lawful termination of employment under common law includes:

Termination of employment by agreement:

  • When the employer and employee agree to bring a contract of employment to an end in accordance with an agreement.
  • For example, if there is a contract for a period of one year and the agreed period expires then the contract will obviously come to an end.

Automatic Termination:

  • A contract of employment may be terminated automatically in circumstances such as death or loss of business of the employer.

Termination of employment by the employee/Resignation:

  • This happens when an employee due to material breach of the contract by the employer decides to resign from her employment.

Termination of employment by an employer:

  • An employer may also terminate the employment of an employee but there is a need to comply with the provisions of the law and contract relating to termination.

Notice period lasts one week if it is served in one month of employment.

After first month an employee working on daily basis should be served notice four days before termination and if an employee works on monthly basis, the notice period should be 28 days.

Worker is entitled to the severance pay if he/she has completed at least a year of a service with the employer.

Severance pay in Tanzania is equal to at least 7 days’ basic wage for each completed year of employment up to a maximum of ten years.

Notice Period

The notice period in Tanzania is:

  • Notice period lasts one week if it is served in one month of employment.
  • After first month an employee working on daily basis should be served notice four days before termination and if an employee works on monthly basis, the notice period should be 28 days.

Severance Pay

Worker is entitled to the severance pay if he/she has completed at least a year of a service with the employer.

Severance pay in Tanzania is equal to at least 7 days’ basic wage for each completed year of employment up to a maximum of ten years.

Probation Period

There is no explicit provision in the Employment and Labor Relations Act 2004 about probation period.

However, this act implicitly requires a probationary period of 6 months by saying that a worker with less than 6 months of employment may not bring an unfair termination claim against the employer.

Employee requirements in 

Tanzania

Working Hours

According to the law, your normal working hours per day are 8 hours and these should not be more than 48 hours per week.

By including the lunch and prayer time in hours of work, working hours should not be greater than 9 hours a day.

Lunch break is applicable only if the employee works continuously for five hours.

Overtime

Overtime is compensated at 150% of the salary for anything over 48 hours or 200% for working on a designated holiday or rest day.

In Tanzania, an employee can continuously work for 6 days but the 7th day must be a rest day.

Want to hire contractors, anywhere? Start with Panther today for $0.

Start for $0
No credit card required