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Private sector pay rise in offing

Private sector pay rise in offing

WORKERS in the private sec- tor may soon heave a sigh of relief after the government said on Wednesday it will unveil new minimum wages any time from now.

The Minister of State in the Prime Minister’s Office, Labour, Youth, Employment and Disabled, Prof Joyce Ndalichako issued the statement Wednesday when closing the Association of Tanzania Employers (ATE) 63rd annual general meeting and high-level workshop, saying the new rates will be made public soon.

This comes a month after the government announced an increase by 23.3 per cent in minimum salaries for civil servants.

Prof Ndalichako said the government has already reached an agreement with the ATE on the new rates and they were at an advanced stage to ensure employees in the private sector enjoy the increased wages.

She said they have submit ted the proposed rate to the salary board for endorsement before being made public officially.

Prof Ndalichako commended ATE for the support and contribution during the whole process of reviewing minimum wages for workers in the private sector, to meet the increased cost of living.

“Workers in the private sector should relax as good news is coming, your improved salaries are being finalised,” said Prof Ndalichako.

The minister said the move is in line with President Samia Suluhu Hassan’s intention to ensure that workers in the private sector enjoy increased salaries as their counterparts in the public sector.

The government plans to spend 9.7tri/- in the 2022/23 fiscal year in payment of sala- ries for public servants in the central and local governments, institutions, parastatals and agencies, pushing the wage bill to 2022/23 by 1.59tri/-.

The decision for salary increments for public servants was subject to the Gross Domestic Product (GDP), domestic revenues expected to be collected in the 2022/2023 financial year and according to the state of both national and global economy.

Prof Ndalichako underscored the need for employers to pay tax as they are key to national economic development.

She said the government will ensure a conducive working and business environment for sustainability and growth of the sector as well as improving welfare of the workers.

She added that the private sector contribution to national development is highly valued since the sector is a key player in the economic growth among other avenues.

However, she insisted on the need for employers to timely remit workers’ contribution to the pension funds, warning that the government will be tough against the offenders.

For her part, Chief Executive Officer of the ATE, Ms Suzanne Ndomba-Doran expressed commitment to work with the government in collectively solving the challenges facing the employers for the sake of the sector’s growth.

She welcomed the review of taxes and levies and financial policies as proposed in the 2022/23 national budget, saying the move will stimulate more economic growth.

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Author: NELLY MTEMA in Dodoma

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