INTRODUCTION
In exercising the power vested under Section 39 (1) of the Labour Institutions Act, Cap 300 revised edition 2019, The Honorable Minister for State, Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability), has issued a new Regulation that sets the new minimum wage standards in private sector within the country.
The Wages and Terms of Employment Order of 2022 Government Notice (GN) No. 687 of 2022 was published on the 25th November 2022 by the Government through the Ministry of State, Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability). The new Regulations, revokes the old Wage Order which was GN No. 172 of 2010.
It may be recalled that, for the past 12 years the Government had not revised the regulation for the minimum wage, thus the new regulation is a breakthrough to the private sector employees.
The Regulation is made to apply effectively from 01st January 2023, meaning that, employers in the private sector will be bound to apply the new minimum wage from 01st January, 2023 onwards.
WHAT IS REGULATED
The new Minimum wage regulation sets the benchmark upon which the private sector will adhere for setting its minimum wage. The coming into force of the new Wage Order has the following implications to employers:
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- Employers who are currently paying their employees wages which are lower than those prescribed under the Second Schedule should adjust such wages in order to be in compliance with the new Wage Order.
- The Minimum wage Order is meant to be a benchmark, however, employers may be at liberty to pay more and above the prescribed minimum wage (R.4).
- Employers are obliged to adhere to other terms of employment applicable to employment such as annual leave and other benefits as my be agreed upon between the employer and employee (R.5).
- For employers who at the commencement of this Wage Order are paying higher rates of wages and are providing more favourable terms and conditions of employment than those prescribed in the regulations should continue to pay such higher wages which for the purpose of this Order shall be deemed to be the minimum wage (R. 6).
- The Wage order set the prescribed minimum wage in form of hourly rate, daily rate and monthly rate for 13 sectors being.
- Agriculture Sector
- Health Sector
- Telecommunication Sector
- Domestic Service Sector
- Private Security Service
- Energy Sector
- Transport Sector
- Construction Sector
- Mining Sector
- Private Schools (Education Sector)
- Commerce, Industry and Trade
- Marine and Fishery Sector
- As for Employers who are in other sectors not mentioned above the Minimum Wage for their employees is TZS 150,000
