Hiring in Tanzania

The terms set out role, salary in TZS, working hours, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the standard contract language for commercial roles.

Fixed-term contracts are limited to categories listed in the Act, such as project roles and non-citizens on time-limited permits, so most EORs default to indefinite terms.

Set probation from day one and run the reviews the Code of Good Practice expects. On a fixed-term contract, a procedural slip during probation can cost the rest of the contract.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at 1.5 times the basic hourly wage, with a cap of 50 overtime hours in any four-week cycle.

Seniority, not salary, decides the exemption, so a well-paid specialist with no direct reports is still covered. Put the position in writing either way.

The 28 days run consecutively and include weekends and any public holidays that fall within them, so they amount to four calendar weeks. Budget on that basis rather than 28 working days.

Paid sick leave runs to 126 days in a 36-month cycle, the first 63 at full pay and the next 63 at half pay. Maternity leave is 84 days, longer for multiple or premature births, and maternity pay can come from NSSF for qualifying members or from the employer, so confirm which side the EOR carries.

Either side may terminate on notice or pay in lieu. After six months' service, dismissal needs a fair reason and a fair procedure, and unfair termination awards run from 6 to 24 months' remuneration depending on the defect.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave, severance after 12 months' service, a certificate of service and transport back to the place of recruitment. Claims go to the Commission for Mediation and Arbitration within 30 days, so keep a documented reason.

Health insurance became compulsory under the Universal Health Insurance Act 2023, with the national roll-out starting in January 2026. Employers must fund cover, either through the national scheme or an approved private policy, and private medical cover remains standard for professional roles.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add around 14% on top of gross salary: 10% NSSF, 3.5% skills development levy and 0.5% workers' compensation. That is before health cover and the EOR fee.

The currency rule is the trap. Bank of Tanzania regulations in force since March 2025 require domestic payments, salaries included, to be priced and paid in TZS, so convert any USD offer before the contract is signed.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and succession plans and local hiring checks apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Controllers and processors must register with the Personal Data Protection Commission, and transfers out of Tanzania need adequate protection or contractual safeguards.

Ask for the EOR's registration, where payroll data is hosted and who in the partner chain can see it.

Incorporation through BRELA is quick, but the running cost is the point: a company secretary, a statutory audit for every company, tax filings with the TRA, NSSF and WCF registrations and business licences set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.