Tanzania SDL and WCF Explained
If you employ staff in Tanzania, you'll likely pay the Skills Development Levy (SDL) and the Workers Compensation Fund (WCF) on top of salaries. This guide explains what each one is, how the rates work, and who's liable — so you know what to budget.
Reviewed by the Calculator editorial team · Last updated 6 September 2026
What is the Skills Development Levy (SDL)?
SDL is a compulsory employer levy that funds vocational education and training. It's charged at 3.5% of your total gross monthly payroll — but it applies only to employers with 10 or more employees. If you have fewer than 10 staff, SDL doesn't apply.
What is the Workers Compensation Fund (WCF)?
WCF is a mandatory insurance scheme that compensates employees for workplace injuries and occupational diseases. It's charged at 0.5% of cash paid to employees and applies to all employers, regardless of size.
Who pays — and who doesn't
Both SDL and WCF are employer-borne only: they are paid on top of salary and are never deducted from the employee's wages. The employee's payslip is unaffected; these are additional employer on-costs.
How much do they add up to?
For a 1,000,000 TZS payroll, SDL adds 35,000 TZS (at 3.5%, for 10+ staff) and WCF adds 5,000 TZS (0.5%), on top of your 10% NSSF employer contribution. Use the calculator below with your own figures.
Tanzania Employer Cost Calculator
Try it with your own numbers:
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Frequently asked questions
What is the SDL rate in Tanzania?
3.5% of total gross monthly emoluments, paid by employers with 10 or more employees.
What is the WCF rate in Tanzania?
0.5% of cash paid to employees, at a unified rate for all sectors.
Are SDL and WCF deducted from employees' pay?
No. Both are employer-borne — they're paid on top of salaries and never deducted from the employee.