30th January 2026 | Legal Updates
THE NEW MINIMUM WAGE ORDER FOR THE PRIVATE SECTORS - 2025
The Government of Tanzania (vide Government Notice 605A) has issued the Labour Institutions (Minimum Wage for Private Sector) Order, 2025 (New Wage Order) that applies to all employees and employers in the private sector.
The New Wage Order has come into effect on 1 January 2026 and will revoked the Labour Institutions (Minimum Wage for Private Sector) Order 2022 (the 2022 Wage Order). This legal update highlights the key changes under the New Wage Order.
Key Points under the Regulations
- Expansion of the Private Sectors.
Two new sectors have been introduced that the New Order applies- (i) Sports, arts, entertainment, gaming activities, and (ii) waste collection, processing, and disposal.
Thus, the New Wage Order applies to the following private sectors:
No. | Sectors |
| Sectors |
i. | Agriculture sector | ix | Construction sector |
ii. | Health sector | x | Mining sector |
iii. | Communications industry | xi | Private School Services |
iv. | Domestic work or services | xii | Trades and finance sector |
v. | Hotel and Hospitality services | xiii | Industrial sector |
vi. | Private Security services | xiv | Sports, arts, entertainment, gaming activities |
vii. | Energy sector | xv | Waste collection, processing and disposal activities |
viii. | Transport and shipping sector | xvi | Other sectors or areas not specified in this Order |
2.Increased Minimum Wage
The average minimum wage for the private sector has been increased to TZS 358,322 from TZS 275,060. The Second Schedule (Appendix I below) to the New Wage Order outlines the minimum wage amount to be paid to an employee in the respective private sector. The New Order mandates the employer to pay the employee an amount above the prescribed minimum wage in the respective sector.
3.Leave Travel Allowance
In addition to annual leave, under the New Order, employees will be entitled to receive leave travel allowance once every two (2) years of continuous service with the same employer.
4.Subsistence Allowance
An employee, under the New Order, is entitled to receive a subsistence allowance when required by his / her employer to work outside his or her workstation, in accordance with the agreement entered into between the employer and the employee.
5.Truck Driver Benefits
The New Order requires truck drivers to receive an allowance in regards to cover mileage, longer stay outside the work station, loading and unloading of cargo accordance to the negotiations entered into between the drivers and the employers.
6.Employees receiving a higher rate than those under order
The new order provides that, on its commencement, employees who are receiving a higher rate of wages than those provided under the order shall continue to receive such higher wages and favourable terms.
Final Remarks
The revised wage order will take effect in January 2026, and the private sectors are encouraged to comply with the Order on its commencement date. Failure to comply with the Order may expose the private sectors to legal risk, complaints, labour actions, etc. Eternal Attorneys assist the private sector in navigating legal compliance. For further inquiries, please contact us as per below:
Disclaimer
This publication is intended to give you a general overview and does not constitute professional legal advice. Eternal Attorneys, its associates, employees, or agents shall not be responsible for any loss in the event this email is relied upon without seeking professional advice first.
About Eternal – Attorneys
Eternal – Attorneys at Law is a specialized law firm based in Dar es Salaam, Tanzania, dedicated to providing legal and consultancy services to clients, locally and overseas. We specialize in Tax, Corporate and Commercial, Compliance and Advisory, Banking and Finance, Litigation, Mining, Oil & Gas, Real Estate, Intellectual Property, Employment, Immigration, Family, Competition, Succession Law, and Estate Planning.
