New minimum wage for the Tanzanian private sector is underway

ARUSHA: THE government is set to sign new minimum wage guidelines for Tanzania’s private sector in a move aimed at improving workers’ welfare and aligning labour policies with current economic realities.

Minister of State in the Prime Minister’s Office responsible for Labour, Youth, Employment and Persons with Disabilities, Ridhiwan Kikwete, said the new framework will introduce updated wage levels to ensure employees in private institutions are fairly compensated.

He announced in Arusha during the inauguration of a new commercial building owned by the Trade Union Congress of Tanzania (TUCTA), located opposite the central market.

According to him, extensive consultations have already been held between stakeholders, including private sector institutions, policy regulators, and the ministerial team responsible for leading the reforms.

What remains is a final round of deliberations with social partners to validate the wage levels before the guidelines are officially signed.

“We expect the signing to take place early next month after the last stage of discussions,” Mr Kikwete said.

“I want to assure workers that President Samia Suluhu Hassan places a high value on your welfare, and the government will continue to improve labour laws to match the needs of employees.”he added

The new wage structure, once approved, will provide a legal benchmark for salaries in the private sector, a move seen as critical in addressing long-standing concerns over low pay and poor working conditions.

Trade unions, including TUCTA, have for years been lobbying for higher minimum wages, arguing that stagnant rates undermine productivity and push workers into financial insecurity.

ALSO READ: Private sector credit rises to 30tri/-

Analysts say the government’s decision could help bridge the wage gap between public and private institutions, while also promoting industrial harmony.

However, the private sector has often expressed concern over frequent wage reviews, warning that abrupt increases could put pressure on businesses, particularly small and medium enterprises.

Kikwete noted that the government is determined to strike a balance by ensuring the new guidelines safeguard workers without stifling private sector growth.

He further stressed that authorities will continue working hand in hand with employees in creating more job opportunities, protecting workers’ rights, and strengthening systems for resolving labour disputes through dialogue rather than conflict.

The upcoming changes mark another step in President Samia’s administration’s commitment to labour reforms, at a time when the economy is expanding and the demand for decent jobs is rising.

For many workers, the signing of the new minimum wage guidelines will be a test of how far the government can go in delivering tangible improvements in livelihoods.