No wage increase yet, but all is not lost for workers

Dar es Salaam. All was not lost for public sector employees on Labour Day after President Samia Suluhu Hassan promised to continue keeping an eye on global economic uncertainties before making the much-anticipated salary raise announcement.

With this year’s Labour Day theme being “Salary Increment is the Foundation for Better Benefits and Protection against Hardships in Life”, trade unions were optimistic that the government would announce a salary increase during Wednesday’s commemoration, which was marked nationally in Arusha.

Speaking on Labour Day preparations last week, Trade Union Congress of Tanzania (Tucta) president Tumaini Nyamhokya said workers’ overriding concern this year was the high cost of living while salaries have remained largely unchanged. He voiced the grievance again during Wednesday’s celebrations.

It will be recalled that President Hassan last raised public sector salaries in 2022, with the minimum wage going up by 23.3 per cent in the first salary increment in seven years.

But speaking on behalf of President Hassan on Wednesday, Vice President Philip Mpango said the government was keeping a close eye on ongoing global uncertainties that have been exacerbated by the wars in Ukraine and Gaza.

The conflicts have adversely affected Tanzania after causing prices of petroleum products, fertiliser, steel and food to soar.

To make matters worse, unusually heavy rains, which have been pounding various parts of the country for several weeks, have had a devastating impact on infrastructure and people’s lives and property, with official data showing that at least 155 people have been killed and 236 others injured since the beginning of April.

Dr Mpango said, however, that despite the challenges, various international agencies, including the International Monetary Fund, World Bank, Africa Development Bank (AfDB) and Moody’s, see Tanzania’s economy weathering the shocks.

“As such, Her Excellency President Samia Suluhu Hassan has directed me to tell Tanzanian workers that even if this situation persists, they should still harbour hope as she will say something soon,” Dr Mpango told the crowd that attended Labour Day celebrations at Sheikh Amri Abeid Stadium in Arusha.

He said the government will continue to improve public servants’ remuneration through annual salary increments and promotions, adding that the government will also step up the improvement of social services.

Speaking earlier, Mr Nyamhokya said there is a need for the government to review the new pension formula and extend maternity leave for women who deliver preterm babies.

“The issue of maternity leave for mothers who deliver prematurely has stirred debate because no one wishes to have a child under such circumstances. We urge that this matter be given priority to ensure that women who spend extra days taking care of their preterm babies are not penalised by having their future leaves slashed,” he said.

Mr Nyamhokya asked the government to explore the possibility reinstating the Social Security Regulatory Authority (SSRA) and criticised the current arrangement whereby social security funds were being directly overseen by the government.

Responding to complaints about the new pension formula, Dr Mpango said the government has taken up the matter and will work on it for the benefit of pensioners. He called for patience since the matter involves scientific analysis to be carried out by experts.

The government, he added, will seek the advice of actuarial experts, who will scrutinise the new benefits formula and offer recommendations. Actuarial science involves rigorous mathematical calculations in the areas of life expectancy and life insurance.

The Vice President asked Tucta and other stakeholders to participate in the analysis so as to come up with the best arrangement for pensioners.

On maternity leave for women who deliver preterm babies, Dr Mpango said from now on leave for women employed in the public sector will start once babies delivered prematurely are out of special care.

Women with preterm babies should also be given time to breastfeed for six months to ensure that their children get the best possible care.

“The government has invested a great deal in mother and child health services, including establishing more care rooms for preterm babies, so I direct that maternity leave in such circumstances begin when the child leaves special care as decided by doctors.”

As for workers in the private sector, the government will review the relevant law so that they too can benefit, Dr Mpango said.

Responding to the request to have the SSRA reinstated, Dr Mpango promised that the government would look into the matter.

SSRA was the regulatory authority when Tanzania Mainland had six social security funds, namely the National Social Security Fund (NSSF), PPF Pension Fund, Public Service Pension Fund (PSPF), Local Authorities Pension Fund (LAPF), Workers Compensation Fund (WCF) and Government Employees Provident Fund (GEPF).

But following the enactment of the Public Service Social Security (PSSSF) Act in 2018, five funds – PPF Pension Fund, PSPF, LAPF, WCF and GEPF – were merged to form the PSSSF, which caters for public servants. Private sector employees remained under the NSSF.

Speaking on Wednesday, Prime Minister Kassim Majaliwa said the occasion provides an opportunity for workers the world over to make plans for the following year, which explains why in many countries Labour Day is marked when national budgets are being prepared.

“This day is very important and it reminds us of our responsibility as employees to discuss together the challenges we face in our work, find solutions together and ultimately bring productivity to the workplace,” he said.

Mr Majaliwa commended Tanzanian workers for their role in bringing about development in the country.

“We all bear testimony to the great success achieved in the past three years economically, politically, diplomatically and socially,” he said.