Tanzania cautions employers to respect directives on the newly set minimum wage
DAR ES SALAAM: FOLLOWING the government’s increase of the minimum wage in the private sector, employers have been warned not to reduce the salaries of employees who were already earning above the newly set minimum levels, which will officially take effect on January 1, 2026.
The new minimum wage for the private sector, announced yesterday by Ridhiwani Kikwete, Minister of State in the Prime Minister’s Office responsible for Labour, Youth, Employment, and Persons with Disabilities, has been increased from 275,060/- to 358,322/- an increase of 33.4 percent.
The announcement was published in Government Gazette No. 605A dated October 13, 2025, stating that the new rates will be implemented at the start of next year.
“When we say ‘minimum wage,’ we mean the starting or lowest wage, but an employer is free to pay more than this amount. However, with the announcement of this new minimum wage, employers must not reduce an employee’s salary because of the newly declared rates,” emphasized Rehema Ludanga, Deputy Secretary-General of the Trade Union Congress of Tanzania (TUCTA).
She urged that if any disputes arise following this announcement or regarding other salary-related matters, stakeholders should engage in dialogue through relevant workers’ unions in their respective sectors.
On his part, the Chairperson of the Minimum Wage Committee for the Private Sector, Dr Suleiman Rashid Mohamed, stated that the process used to reach the announced figure was inclusive, involving trade unions, employers, employees, and researchers. He explained that stakeholders were given questionnaires and engaged in face-to-face discussions (public hearings) to ensure the new minimum wage would not be too high to negatively impact the economy or lead to job losses.
Meanwhile, the Chief Executive Officer of the Association of Tanzania Employers (ATE), Suzanne Ndomba Doran, said despite the announcement of the new minimum wage, which is reviewed every three years, they will continue to hold meetings with employers to raise awareness on its implementation.
