Monday, 16 November 2015

Minimum Wage


Every person without discrimination of any kind is entitled to remuneration commensurate with work and all persons working according to their ability shall be remunerated according to the measure and qualification for the work. Every person is entitled to just remuneration. (Art. 22 of the Constitution). The wage rates are determined by Wage Boards constituted in accordance with Labour Institutions Order 2007. 

The minimum wage rates have been fixed under the Wages Order 2013. While determining the minimum wage, the Wage Board takes into account all relevant factors including the cost of living, level of wages and income in the country, economic development, level of employment, the minimum subsistence level, ability of employers to carry on their businesses, operation of small, medium and micro enterprises, the remuneration and terms and conditions of employment of employees employed in the East African Community in the sector, any collective agreements providing for remuneration and terms and conditions of employment in the sector, alleviation of poverty and any other relevant matter. (section 37 of the Labour Institutions Act, 2004). 

Minimum wage rates are determined for the following sectors: Health services; agriculture services; Trade, industries and commercial services; communication services; mining; Private schools services (Nursery, Primary and Secondary schools); Domestic and Hospital Services; Private Security Services; Energy Services; Transport Services; Construction Services; Fishing and Marine Services; and Other sectors not mentioned above. 
Learn more about minimum wages in Tanzania.
Wages Order 2013


Night Work

If a worker usually works at night, he has to be paid a night premium of 5% over and above his normal wage rate. If that worker is working at night (as overtime), he has to be paid a night premium + overtime premium. 

Regular Pay

The law regulates the payment of wages to all classes of workers. Wages can be calculated on hourly, daily, weekly or monthly basis. Employer should pay the employee his wages during the working hours at the place of work on agreed pay day in a sealed envelope if payment is made in cash or through check. Employment and Labour Relations Act, No. 6,  2004, Sec. 26-27

Overtime

In accordance with the section 19 of Employment and Labour Relations Act 2004, employees can be required to work 6 days a week. The normal working hours are 9 hours a day and 45 hours a week. If a worker works beyond the stipulated working hours, he is entitled to an overtime pay that is one and a half time (1.5 of X or 150%) the rate of his ordinary pay. The weekly hours limit does not apply to employees who manage other employees on behalf of the employer and who report directly to a senior management employee. An employer may not require an employee to work more than 12 hours in a day and more than 50 hours overtime in a 4 week cycle. A written agreement may require or permit an employee to work up to twelve hours in a day inclusive of any meal interval without receiving overtime pay. However, such agreement may not require or permit an employee to work more than 5 days and 45 hours as well 10 hours of overtime in a week. A collective agreement may also provide for averaging of ordinary and overtime hours over an agreed period (not greater than one year) however such agreement may not require or permit the work to work more than 40 ordinary hours of work per week calculated over the agreed period and ten hours overtime per week calculated over the agreed period. The overtime limit does not apply to (i) the employees who manage other employees on behalf of the employer and who report directly to a senior management employee; or (ii) emergency work which cannot be performed by employees during their ordinary hours of work; and (iii) where an applicable collective agreement provides for the averaging of the overtime hours of work over an agreed period not exceeding one year, subject to a limit of ten overtime hours per week on average. (Section 17-22 of Employment and Labour Relations Act 2004)Employment and Labour Relations Act, No. 6,  2004, Sec. 19
 

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