Tanzania workers in huge relief as paycheck raise passed

Dar es Salaam. An air of relief has engulfed public servants following government decision to raise the minimum wage by 23.3 percent starting the coming new financial year.

The government yielded to the pressure of trade unions and also accepted review of the formula for calculating pensions.

The government decision to raise salaries of civil servants was welcomed by the workers associations and individuals with others urging the government to now pull up socks in revenue collections.

The government has not raised salaries of civil servants in the last seven years despite increase in the cost of living which they claimed put living standard of most below the poverty line.

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President Samia Suluhu Hassan yesterday approved the increment of minimum wage by 23.3 percent starting next financial year, the Presidency announced in a statement issued by the Director of Presidential Communications, Ms Zuhura Yunus.

The increase is the fulfilment of her promise made on Labour Day this year as she committed to do something this year.

The rate of increase reduces as the amount of the salary increases, according to the workers’ associations. “The increase is based on the country’s GDP, domestic revenue expected to be collected in 2022/23 and the state of the domestic and global economy,” the government stated.

As a result of the increment, the government plans to spend Sh9.7 trillion to pay salaries of civil servants in the central government, local government, institutions and government agencies.

The proposed increment will push government wage bill in 2022/23 by Sh1.59 trillion equivalent to 19.51 percent compared to the budget for the financial year 2021/22.

President Hassan also directed officials responsible for social security to work with the Trade Union Congress of Tanzania (Tucta), in finalizing procedure to increase lumpsum payment of the retirement benefits to 33 percent from the 25 percent that was boycotted in 2018.

Time to work

Reacting to the announcement yesterday, TUCTA president Tumaini Nyamhokya thanked President Hassan for fulfilling the workers’ wishes.

He said the salary increase would affect all salary scales but as the salary increases the percentage decreases to reduce gap between different schemes of work.

“Now is the time for workers to work hard for the development of the country,” he said.

Mr Nyamhokya said for several years, the civil servants have not been promoted along with the salary increase.

“So, what the President did is a big thing for us. The calculations presented are very clear because we were involved in every step,” he added.

He was also happy that the civil servants started receiving arrears they have been waiting for many years.

An economist from the University of Dar es Salaam (UDSM), Dr Wilhelm Ngasamiaku, said the increment in the financial year 2022/2023 will force the government to look for more sources of revenue.

“In the next financial year, a larger portion of the budget will go to salaries and that means more effort is needed to collect more revenue for development projects. Salaries depend only on the domestic revenue,” he said.

On the other hand, Tanzania Higher Learning Institutions Trade Union (THTU) chairman Paul Loisulie said what happened was the expectation of many workers considering that wage had not increased for more than six years.

Dr Loisulie, who is also a lecturer at the University of Dodoma (Udom), observed that despite all the economic and social hardships, these measures were comforting and reassuring for the staff who talked a lot about the hardships of life.