Private sector welfare tops Tucta Workers’ Day agenda

Workers’ Day celebrates the achievements of the labour movement and traces its roots to the campaign for an eight-hour workday, which called for a balanced division of the day into eight hours for work, eight hours for rest and eight hours for recreation.

This year’s celebrations, to be graced by President Samia Suluhu Hassan, will take place at Liti Stadium in Singida.

In an exclusive interview with The Citizen, Tucta president Tumaini Nyamhokya voiced his concern about the declining welfare of private sector workers, despite significant progress in improving the well-being of public service employees.

“Promotions and salary reviews in the private sector take too long, if they happen at all. We are determined to keep the conversation with employers alive and push for better working conditions and fair pay that reflect the rising cost of living” he noted.

Mr Nyamhokya stressed that the welfare of Tanzanian workers should not be a seasonal concern, noting that these issues should not only be highlighted during Labour Day celebrations.

“Respect in the workplace, fair treatment and professional dignity are non-negotiable issues that Tucta addresses daily,” he said and called for support from other labour stakeholders.

However, Mr Nyamhokya commended the government for its efforts to improve the welfare of public servants, particularly through promotions that come with salary increments in line with new job grades.

“Employees elevated to new job grades have received an average salary increment of between Sh200,000 and Sh300,000. When promotions are implemented like this, employees don’t bother pushing for a Sh20,000 or Sh50,000 rise,” he said.

He also noted that the government’s commitment to promoting its employees has greatly reduced salary disputes, stressing that addressing outstanding issues in the private sector would help create a more equal society for all Tanzanians.

Tabling his docket’s Sh1.354 trillion budget for 2025/26, the Minister of State in the President’s Office (Public Service Management and Good Governance), Mr George Simbachawene, said from July 2024 to March 2025 the government made several approvals in executing its duties.

“They include 34,195 new or replacement appointments, 1,206 changes in employment status, 20,107 data cleaning, 1,912 salary changes and 1,142 personal salary,” he told Parliament earlier this month.

However, Association of Tanzania Employers (ATE) CEO Suzanne Ndomba-Doran revealed that internal company policies, financial capacity and collective bargaining agreements determine salaries of private sector workers.

“In companies where unions are active, salaries are typically negotiated directly with employers through structured agreements, fostering mutual respect and stronger workplace relations,” she said, underscoring ATE’s commitment to talent development.

Former Tucta secretary-general Nicholaus Mgaya painted a bleak picture of the current labour landscape, urging union leaders to show more courage and commitment.

“Workers’ welfare in the government and private sectors remains poor.

 Wages lag far behind the rising cost of living, especially in the private sector,” he said.

Mr Mgaya warned workers not to expect surprise pay rises this May Day, describing the day as a time for reflection and advocacy.

The current minimum wage

In 2022, President Hassan announced a 23.3 percent pay rise for public servants of the union government.

 The increase meant that public workers on the Sh300,000 minimum wage would receive an additional Sh69,900 in gross pay.

That means after deducting five percent for pension contributions, about Sh18,500 goes to statutory pension benefits.

After applying the Pay As You Earn (PAYE) tax, Sh6,512, about Sh344,893 is left in the employee’s take-home pay.

In May 2022, the Revolutionary Government of Zanzibar raised the minimum wage for public sector employees by between 15.6 and 19 percent, increasing wages from Sh300,000 to Sh347,000 per month.

A public servant holding a certificate in arts, employed in 2019, saw his/her salary raised from Sh321,000 to Sh382,000, representing a 19 per cent increase.

For the private sector, the Minister of State for the Office of Labour, Economy and Investment, Mr Mudrick Ramadhan Soraga, announced a salary increase from Sh300,000 to Sh347,000 in March 2023.

Decent pay versus work efficiency

A new report by the National Bureau of Statistics (NBS) shows that over half of Tanzania’s employed population—1,996,555 out of 3,717,980—earn between Sh0 and Sh499,999 monthly.

Only 27.2 percent of workers earn Sh700,000 or more, as the figures highlight the persistent wage challenges.

Speaking recently, Mr Simbachawene warned that a minimum wage set without considering economic realities could harm national development.

Private sector minimum wages

The minimum wage rates for the private sector under GN. 687 of November 2022 establish the sectors and their respective rates: telecommunications (Sh500,000), broadcasting (Sh225,000), teachers (Sh207,000), small energy firms (Sh225,000) and international energy companies (Sh592,000).

Other sectors include: commerce and industry (Sh150,000), financial institutions (Sh592,000), domestic services (Sh120,000–Sh300,000), construction (Sh320,000–Sh420,000), private security (Sh148,000–Sh222,000), aviation (Sh300,000–Sh390,000), land transport (Sh300,000), mining (Sh250,000–Sh500,000), marine and fishing (Sh238,000), health (Sh195,000), agriculture (Sh140,000) and hotels (Sh150,000–Sh300,000).

Minimum wage regulations

The government introduced new minimum wage standards for the private sector, marking the first revision in 12 years.

The Minister of State in the Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability), under powers conferred by Section 39(1) of the Labour Institutions Act, Cap 300 (R.E. 2019), issued the Wages and Terms of Employment Order, 2022 through Government Notice No. 687 of 2022.

The new regulations revoke the previous Wage Order (GN No. 172 of 2010) and took effect from January 1, 2023.

The Order sets minimum wage benchmarks for hourly, daily and monthly rates across 13 sectors, including agriculture, health, telecommunications, domestic service, private security, energy, transport, construction, mining, private education, commerce, industry and trade and marine and fisheries.

Employers are required to pay wages above the rates specified in the new regulation, though they are free to offer higher wages.