HRsolution » COUNTRIES » Tanzania, United Republic of

Population

Tanzania has about 67 million inhabitants (as of 2023), making it one of the most populous countries in East Africa. The population is ethnically diverse, with more than 120 ethnic groups, including the Sukuma, Nyamwezi, Chagga, and Haya.

Capital

The official capital of Tanzania is Dodoma, where government offices are located. However, Dar es Salaam, on the coast of the Indian Ocean, is the largest city and the economic hub of the country.

Economic Power

Tanzania’s economy is one of the largest in East Africa, primarily based on agriculture, which accounts for about a quarter of GDP and around 65% of employment. Key exports include coffee, tea, cotton, cashew nuts, and tobacco. The mining sector, particularly gold, is also a significant contributor. The services sector, including tourism and telecommunications, has grown in recent years. Despite steady growth, Tanzania remains a low-income country, and many people live in poverty.

Culture

Tanzania’s culture is rich and diverse, influenced by over 120 ethnic groups. Swahili and English are the official languages, with Swahili serving as the lingua franca. The country is famous for its music and dances, including Taarab and Bongo Flava, and its natural beauty, with attractions like the Serengeti National Park and Mount Kilimanjaro. Religious tolerance is strong, with both Islam and Christianity playing important roles in society.

Currency

The official currency of Tanzania is the Tanzanian Shilling (TZS).

Health Insurance and Social Security System

Tanzania has a public healthcare system, which is often underfunded and struggles with limited resources, especially in rural areas. There is no mandatory health insurance, but various public and private health programs provide basic coverage. Private health insurance is common among higher-income workers. The social security system is managed by entities like the National Social Security Fund (NSSF), which covers pensions, work accident insurance, and other basic social security benefits.

Costs for Employers

Employers in Tanzania are required to contribute to social security, including pension contributions and other social charges. These contributions amount to about 20% of gross salary (10% from the employer and 10% from the employee).

Salaries and Bonuses

Salaries in Tanzania vary widely depending on the industry and qualifications. A legal minimum wage exists but is often insufficient to cover living costs. Bonuses are not legally required but are frequently offered as performance incentives, particularly in larger companies.

Payroll

Payroll in Tanzania must account for statutory deductions for taxes and social security contributions. Employers are responsible for the correct calculation and submission of these payments.

Public Holidays

Public holidays in Tanzania include New Year’s Day (January 1), Good Friday, Easter Monday, Labor Day (May 1), Saba Saba (July 7), Nane Nane (August 8), Independence Day (December 9), Christmas (December 25), and Boxing Day (December 26). Religious holidays like Eid al-Fitr and Eid al-Adha are also observed.

Working Hours

Regular working hours in Tanzania are 40 hours per week, typically spread over five working days. Overtime is legally regulated and must be compensated.

Vacation

Employees are entitled to at least 28 paid vacation days per year. This entitlement may vary depending on the industry and length of service. Paid public holidays are also observed.

Incapacity for Work

Employees must provide a medical certificate in the event of illness to be eligible for paid sick leave. The social security system partly covers sick pay, but the benefits are often limited and depend on the length of service.

Termination/Severance Pay

Tanzania’s labor law sets clear rules for terminations, including notice periods that depend on the length of employment. Severance pay is required when an employee is dismissed without just cause, and the amount depends on the length of service

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