What Does It Cost to Employ Someone in Tanzania?
Hiring staff in Tanzania costs more than the gross salary you offer. On top of that salary, an employer pays three statutory contributions — NSSF, the Skills Development Levy (SDL) and the Workers Compensation Fund (WCF). This guide breaks down each one and shows the true cost per employee.
Reviewed by the Calculator editorial team · Last updated 6 September 2026
The three employer on-costs
Tanzanian employers pay three statutory contributions on top of gross salary: 10% NSSF (pension), 3.5% Skills Development Levy (SDL, but only for employers with 10 or more employees), and 0.5% Workers Compensation Fund (WCF). Together these add roughly 14% to your payroll cost.
NSSF — 10% employer contribution
NSSF is the mandatory pension scheme for private-sector employees. The employer pays 10% of the gross salary, matched by a 10% employee contribution. It's a fixed 20% of salary in total, with no salary ceiling.
SDL — 3.5%, but only at 10+ employees
The Skills Development Levy funds vocational training. It is 3.5% of total gross monthly payroll, but applies only to employers with 10 or more employees. If you have fewer than 10 staff, SDL doesn't apply.
WCF — 0.5%, all employers
The Workers Compensation Fund insures employees against workplace injuries. It is 0.5% of cash paid to employees and applies to all employers regardless of size. Like NSSF and SDL, it is employer-borne and not deducted from the employee.
Worked example
For a 1,000,000 TZS gross salary, an employer with 10+ staff pays 100,000 NSSF, 35,000 SDL and 5,000 WCF — a total of 140,000 TZS on top, making the real cost about 1,140,000 TZS per employee. Use the calculator below with your own figures.
Tanzania Employer Cost Calculator
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Frequently asked questions
What does it cost to employ someone in Tanzania?
Roughly 14% above gross salary: 10% NSSF, 3.5% SDL (at 10+ employees) and 0.5% WCF — all paid by the employer.
Is SDL mandatory for all employers?
No. SDL applies only to employers with 10 or more employees, at 3.5% of total gross monthly payroll.
Are these deductions taken from the employee's pay?
No. NSSF, SDL and WCF employer shares are all employer-borne — they're not deducted from the employee's wages. Only the NSSF employee share (10%) comes out of the paycheck.