New minimum wage rates for private sector on horizon

THE government is eyeing to announce new minimum wage rates for the private sector by early next year.

Such development comes after the government in the past months carried out salary reviews and increments for public servants, following an order by President Samia Suluhu Hassan on May Day.

Deputy Minister in the Prime Minister Office (Labour, Youths, Employment and Persons with Disability) Mr Patrobas Katambi told reporters in Dar es Salaam, yesterday, noting that the government is coordinating relevant meetings being carried out by the Minimum Wage Board.

“The meetings for the review of minimum wage rates and allowances for the private sector and drivers are still under discussions…the announcement is expected to be done early next year,” said Mr Katambi.

According to him, the Minister of State in the Prime Minister Office (Labour, Youth, Employment and Persons with Disability is mandated in accordance with the laws of the land to carry out such announcements.

He, however, disclosed that before the announcement the review process has to take into account several factors which reflect the economic reality and ability of the employers to strike a balance.

Meanwhile, the deputy minister called upon all youths who have benefitted from the four per cent youth funds from district and municipal councils to timely service their loans so that others can benefit from the same mechanism.

He noted that there has been a major setback in the recovery of the loans, with the youths pointing fingers at fellow group members for not meeting the crucial obligation.

Citing an example of Dar es Salaam, he said about 50bn/- has been disbursed to the youth since the programme started but unfortunately, its only 10bn/- which has been recovered.

Following the challenge, Mr Katambi said the government had taken various measures including revising the mechanism and requirements of offering the funds from dealing with groups only to providing the money to individuals, including increasing the amount of loan to up to 50m/-.

“The aim of providing the loans is to empower a many youths as possible to foster development… defaulting in servicing them impedes the goal. Other councils have resorted to take the defaulters to court but it is not the intention,” noted the deputy minister.

He said the government held good intentions to create a conducive environment for the youth to be able to employ themselves and employ others, urging them to service the loan.

In complementing the good intention in the financial year 2022/2023 the government has released about 1bn/- for the Youth Development Fund to further support and scale up youth-led income generating activities.

On the other hand, the minister disclosed that in the period between July and September 2022 the ministry carried out 859 inspections in the areas of work and released 3,298 work permits.

Similarly, they have collected over 8bn/- equivalent to 22.9 percent of the collection target of the financial year 2022/2023.

“I urge all employers countrywide to fulfill their obligations by issuing working contracts, paying employees’ contributions and according the employees chance to take part in trade unions,” He stressed.

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