By Dr. Temu

The Government of the United Republic of Tanzania, through Government Notice No. 605A of 2025, published the Labour Institutions (Minimum Wage for Private Sector) Order, 2025 (“The 2025 Order”) made under Section 39(1) of the Labour Institutions Act [Cap 300 R.E 2023], increasing the minimum wage for employees in the private sector. The Order revokes the previous Labour Institutions (Minimum Wage) Order, 2022 (GN No. 687 of 2022) and sets to take effect from 1st January 2026.

Key Issues Addressed in the Order.

  1. Legible Sectors: The2025 Order extends the coverage/application to three more sectors, namely Waste Collection, processing and disposal activities, and Sports, arts, entertainment and disposal activities. This is found under Order 4(1) and the First Schedule to the Order, which from the 2022 Order which had thirteen Sectors including Agriculture, Health, Communications, Domestic work and Hotel services, Private Security Services, Energy Sector, Transport, Construction, Mining, Private School Services, Trade and Industry, Fishing and other Unspecified sectors, the 2025 Order covers sixteen (16) sectors now. The prescribed minimum wages are detailed in the Second Schedule, outlining sector-specific rates on an hourly, daily, weekly, fortnightly and monthly basis.
  • Payment Above the Minimum Wage: The 2025 Order under Order 4(3) and (4) has retained the provision allowing employers to pay above the prescribed minimum wage as provided for under the 2022 Order, both upholding the parties’ freedom to negotiate more favourable terms through employment contracts or collective bargaining agreements. This ensures that the Order serves as a statutory foundation while providing flexibility for more favourable and enhanced remuneration arrangements and benefits to employees.
  • Retention of Higher Wages: Like the 2022 Order, the 2025 Order under Order 6 has maintained the provision on employees who are already receiving higher wages than those prescribed under this 2025 Order to continue to enjoy such higher wages and favourable terms for as long as they remain in the employment of the same employer. This provision safeguards existing benefits and prevents regression in employee entitlement.
  • Leave Travel and Subsistence Allowance:  The 2025 Order under Order 5 (2) to (4) has also retained the entitlement to leave travel allowance (once every two years of continuous service) and the payment of subsistence allowances for lorry drivers working away from their regular duty stations. It clarifies that such allowances are to be determined by mutual agreement between the employers and drivers. These provisions aim to enhance employee welfare and reduce the financial burden of work-related travel.

Implications for Employers: Employers are advised to review their payroll structures, employment contracts, and collective agreements to ensure compliance with the new wage thresholds, adjust remuneration policies to meet or exceed the new minimum wage thresholds, and implement compliance measures before the effective date. Failure to comply may result in enforcement measures and legal liabilities under the Labour Institutions Act.

Disclaimer:    The information contained in this legal update is for information purposes only and does not constitute legal advice, nor does it create an attorney-client relationship. For more information and professional legal counsel,

please write to us at info@africorp.co.tz or give us a call at +255 22 211 0660.