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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.

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

  • Example

    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).

  • Under 10 staff

    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.

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.

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

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