Tanzania Employer Cost Calculator

Work out what it actually costs to employ someone in Tanzania. Enter the gross monthly salary to see the employer contributions — NSSF (10%), Skills Development Levy (3.5% where it applies) and Workers Compensation Fund (0.5%) — and the total cost per employee.

Gross monthly salary (per employee)

TSh

= 1,000,000 TShNumber of employees

SDL (Skills Development Levy)

Total cost to employer (per employee)

TSh 1,105,000

Gross salaryTSh 1,000,000

NSSF employer (10%)TSh 100,000

SDL (3.5%)TSh 0

WCF (0.5%)TSh 5,000

Total employer on-costTSh 105,000

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How it works

Beyond the gross salary, Tanzanian employers pay three statutory contributions: 10% NSSF (pension), 3.5% Skills Development Levy (only for employers with 10+ staff), and 0.5% Workers Compensation Fund. Together they add about 14% on top of salary.

On-cost = NSSF 10% + SDL 3.5% (≥10 staff) + WCF 0.5% ≈ 14% · Total = salary + on-cost

Worked examples

A 1,000,000 TZS salary in a business with 10 or more staff
Baraka runs a logistics firm in Arusha with 14 staff.
Employing someone on 1,000,000 TZS gross costs about 1,140,000 TZS once you add NSSF (100,000), SDL (35,000) and WCF (5,000).
The same salary below the SDL threshold
The same hire in a business with nine employees or fewer, where SDL does not apply.
With fewer than 10 employees, SDL doesn't apply, so the on-cost is NSSF 10% + WCF 0.5% = 10.5%, or 1,105,000 TZS on a 1,000,000 TZS salary.

What this assumes, and where it does not apply

What it assumes

Shows the employer's side: the matching pension contribution, the Workers Compensation Fund contribution, and the Skills Development Levy where it applies.
NSSF is assumed for a private-sector employer (10% + 10%); switch to the public-service scheme in the salary calculator for PSSSF rates.

Where the result does not apply

SDL applies once a business has ten or more employees; below the threshold it is not due, which is why the two examples differ.
Health insurance contributions, leave accrual, recruitment and training costs are not included.
Does not include statutory contributions for staff on contracts that fall outside these schemes.

Frequently asked questions

What does it cost to employ someone in Tanzania?

Roughly 14% above gross salary: 10% NSSF, 3.5% SDL (if 10+ employees) and 0.5% WCF, all paid by the employer.

Who pays SDL and WCF?

Both are employer-only contributions — they are not deducted from the employee's pay.

When does SDL apply?

The Skills Development Levy applies to employers with 10 or more employees, at 3.5% of total gross monthly payroll.

Are these rates current?

Rates change over time. This shows the current NSSF 10%, SDL 3.5% and WCF 0.5% — always verify with the relevant authority.

Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.

Delta Tech Solutions prepared this page. No external tax, accounting or legal professional reviewed it — the figures were checked against the sources listed above, and you should confirm anything you rely on with the authority that sets it.

Sources: National Social Security Fund (NSSF) · Tanzania Revenue Authority (TRA)

Maintained by David M at Delta Tech Solutions · Figures last checked 19 October 2026 · Next check due 19 April 2027

Read the guide: What Does It Cost to Employ Someone in Tanzania? →

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Tanzania Employer Cost Calculator

How it works

Worked examples

A 1,000,000 TZS salary in a business with 10 or more staff

The same salary below the SDL threshold