By The Arusha News Reporter
Workers in Tanzania could soon earn a new minimum wage of 500,000/- per month if recommendations by the Wage Board are approved.
The board, which was tasked by the Ministry of Labour to review the current rates, has reportedly completed its consultations and submitted a proposal to the minister.
Currently, the minimum wage varies across sectors, with some as low as 100,000/- per month. Labour unions have welcomed the proposed increase, saying it will uplift low-income earners and reduce inequality.
However, some employers have raised concerns about the financial impact of such a significant hike, especially for small and medium enterprises.
The Ministry is expected to make a formal announcement in the coming weeks following internal reviews and cabinet discussions.
“This increase will ease the economic hardship I’ve been facing. Life has been tough for us,” said Mwatuma Juma, a school teacher. However, observers were quick to note that the hike could also kick off inflation, especially if there won’t be regulatory caping on price pull items such as fuel that tend to cascade or spiral prices upward.
John Samuel, a government driver, told The Arusha News that the raise would improve his family’s welfare and boost capital for his small poultry business. “I’m excited by the good news of the salary increase,” he added.
President Samia attributed the wage hike to the country’s improved economic performance, citing the 5.5 per cent growth rate of the economy. She stressed that the adjustment recognised the public servants’ dedication, hard work and contribution, especially during difficult economic times. She also noted that other salary scales would be reviewed and adjusted based on available budgetary resources.
Regarding the private sector, President Samia stated that the government, through the Minimum Wage Board, is reviewing pay structures to improve conditions for private-sector employees. She urged the Ministry of Labour and the trade unions to strengthen the collective bargaining agreements to secure better terms for private-sector employees.
Trade unions have applauded the public sector wage increase, but continued to advocate for similar reforms in the private sector. Leaders from various unions, including the Trade Union Congress of Tanzania (TUCTA), have called for decisive action to address long-standing wage disparities between the private and public sector employees.
The last minimum wage increase was three years ago when President Samia approved a 23.3 per cent rise for public servants—the first such adjustment since 2016.
In 2023, during International Workers’ Day celebrations, President Samia reinstated the annual salary increment system, which had been suspended since 2016. She also pledged further improvements in workers’ welfare, including allowances and promotions.
