Home Employer of record Employer of record in Tanzania
Employer of record in Tanzania
To employ people in Tanzania without your own company, we engage a vetted local partner as the locally registered legal employer in Tanzania and manage the employment for you, with SLONEC Advisory Group as your single contracting party in the UK. We cover contracts, PAYE, NSSF, the skills and development levy, workers’ compensation and work permits.
Services we coordinate in Tanzania
Employer of record; set-up coordination with BRELA (business registration) and the Tanzania Revenue Authority; payroll and compliance; market entry support, including the Tanzania Investment Centre route for larger investors.
Payroll in Tanzania
- PAYE on graduated resident rates, paid to the Tanzania Revenue Authority by the 7th of the following month.
- NSSF: 20% of gross pay, usually split equally between employer and employee.
- Skills and development levy of 3.5% of gross pay, paid by employers with 10 or more employees and filed with PAYE by the 7th.
- Workers Compensation Fund contributions, paid by the employer.
- Employment terms under the Employment and Labour Relations Act 2004.
Foreign staff: permits
Foreign employees need a work permit from the Labour Commissioner under the Non-Citizens (Employment Regulation) Act 2015, and a residence permit (usually Class B) from the Immigration Department. Employers are expected to show a succession plan for training Tanzanians.
Who hires in Tanzania
Foreign direct investment rose by about 28% in 2024, to about US$1.7 billion (UNCTAD), with Gulf, Chinese and Indian capital and a Turkish-built railway.
UK tax angle (general information, not advice)
The UK has no comprehensive income-tax treaty with Tanzania, so there is no treaty relief to rely on; unilateral UK relief may be available depending on the facts. Tax treaties would not cover National Insurance in any case. The UK has no social security agreement with Tanzania. If a UK employer sends one of its own employees to work there, UK Class 1 National Insurance may continue for the first 52 weeks if the conditions are met, and NSSF contributions may also be due. If the person is employed locally through the employer of record instead, UK Class 1 National Insurance does not normally continue, although they may be able to pay voluntary Class 3 contributions if they meet the conditions. UK income tax depends on residence under the Statutory Residence Test. Using an employer of record does not by itself prevent a permanent establishment. Ask us for a proposal and we will look at your facts.
Pricing. Our employer of record service in Tanzania is US$199 to US$399 per employee per month (excluding UK VAT or any local sales tax, where either applies), plus the employment costs, which are charged at cost. We confirm the fee for your team in a written proposal.
Invoicing and VAT. Employment costs (salary, employer social security, pension contributions and other agreed employment costs) are charged at cost. VAT, where it applies, is charged on the total of the employment costs and our service fee. Our fees for this service are set out in US dollars in your proposal and invoiced in US dollars, exclusive of VAT. Where UK VAT applies, the VAT amount is also shown in pounds sterling on our invoice, as UK VAT rules require. SLONEC Advisory Group has applied for VAT registration. Where VAT applies, it will be charged at the applicable rate on fees for work carried out on or after our VAT registration date, and our VAT number will be shown on our invoices.
Frequently asked questions
Can I hire in Tanzania without a local company?
Yes, where we engage a vetted local partner as the locally registered legal employer, with SLONEC Advisory Group as your single contracting party.
What employer contributions apply?
NSSF, the skills and development levy and Workers Compensation Fund contributions, on top of salary.
When is PAYE due?
By the 7th of the following month.
What do foreign employees need?
A work permit from the Labour Commissioner and a residence permit.
Does the UK have a tax treaty with Tanzania?
No comprehensive income-tax treaty.
Do you also cover Kenya and Uganda?
Yes.
How much does it cost?
Our service fee is US$199 to US$399 per employee per month. Salary, employer contributions and other agreed employment costs are charged at cost on top. UK VAT or any local sales tax is payable on top where either applies, and we confirm everything in a written proposal.