Tanzania balances wage hikes, local jobs push

DODOMA: TANZANIA is seeking to balance higher wages for workers with employers’ ability to absorb rising labour costs as the government tightens rules aimed at protecting jobs for citizens.

Minister of State in the Prime Minister’s Office (Labour, Employment and Relations), Mr Deus Sangu, said this in the National Assembly in Dodoma yesterday when responding to a basic question from Abdullah Ali Mwinyi (Mahonda, CCM), who wanted to know whether minimum-wage regulations were creating inequality by setting different wage levels for foreign and locally owned companies.

Sangu said minimum wages in the private sector are determined by economic sector, with the process taking into account employers’ ability to conduct business and pay workers, as well as the cost of living.

“The government is committed to protecting employment opportunities for Tanzanians while ensuring workers receive minimum wages that take into account economic conditions and the cost of living,” said MrSangu.

Private-sector minimum wages were reviewed through consultations involving workers’ unions, employers and the government, resulting in a 33.4 per cent increase, he said. Implementation of the new rates began on January 1.

Mr Sangu said that, inspections had shown that more than 90 per cent of employers were complying with the new minimum wage, while no employer had approached his office seeking an exemption from paying it.

He said that the minimum-wage regulations were established under the Labour Institutions Act, Cap 300, which provides for sectoral minimum-wage boards covering the public and private sectors.

Mr Sangu said Tanzania is also strengthening local employment opportunities as it implements the Tanzania Development Vision 2050 and seeks to make better use of its growing labour force.

He said the government will continue taking action against individuals who used improper means to access jobs meant for Tanzanians.

In a supplementary question, Mwinyi asked how the government could help young Tanzanians access employment opportunities and benefit from local-content requirements.

Mr Sangu said the government continues to enforce local-content requirements, ensuring that jobs that could be performed by Tanzanians are reserved for them.

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He said the government is committed to protecting workers’ interests and has already taken measures to improve minimum wages.

Mr Sangu added that President Samia Suluhu Hassan raised the minimum wage for public-sector workers by 35.1 per cent in 2025, describing it as the first increase of its scale in the country’s history.