All eyes on Samia as nation marks Workers’ Day

Dar es Salaam. With President Samia Suluhu Hassan gracing this year’s Workers’ Day on Wednesday in Arusha, workers expect she will announce another salary increase and issue a statement on the contentious new pension formula.

Also known as International Labour Day or May Day, Workers’ Day is celebrated internationally to promote and encourage healthy dialogue among social partners.

Usually celebrated every May 1, the occasion offers an opportunity to recognise workers’ and the working class’ contribution to the development of society and the country in general.

Read: Why Tanzania workers waited for this May Day 

Speaking on Tuesday at Sheikh Amri Abeid Stadium in Arusha, Prime Minister Kassim Majaliwa expressed his satisfaction with preparations for the event, whose theme is “Salary Increment is the Foundation for Better Benefits and Protection against Hardships in Life”.

Trade Union Congress of Tanzania (Tucta) president Tumaini Nyamhokya said recently that the theme is based on the rising cost of living.

“Workers can only perform effectively if their demands are met and this time again our outcry is inadequate pay. The cost of living keeps on rising while salaries remain stagnant,” he pointed out, adding that improved salaries usually go hand-in-hand with better retirement benefits.

Should the salary increase proposal sail through, it will President Hassan’s second after the one in 2022 when she raised the minimum wage for public servants by 23.3 percent.

Prior to the 2022 salary adjustments, the last time civil servants enjoyed a salary increment was in 2015 before the late Dr John Magufuli came into office.

Following the last salary increment, the government spent Sh9.7 trillion to pay the salaries of civil servants in central government, local government, institutions and government agencies in the 2022/23 financial year. The government wage bill rose by Sh1.59 trillion – a 19.51 percent increase – compared to 2021/22.

The other thorny issue that workers hope the Head of State will address is the controversial new pension formula, which has featured prominently in Parliament’s ongoing budget sitting, with lawmakers faulting it, saying it ignores workers’ expectations and subjects them to stressful lives, thus adversely affecting their productivity.

The issue took centre stage last month when Parliament debated the 2024/25 budget proposals of the President’s Office (Regional Administration and Local Government – PO-RALG).

A number of lawmakers castigated the new pension formula, with Dr Pius Chaya (Manyoni East-CCM) saying although the idea of changing the 50/50 percent pension formula to 67/33 percent was good, it was adopted without thorough research and therefore ignored workers’ expectations.

“All problems that exist today are a result of ignoring people’s expectations. They have set expectations that upon retirement they will receive 50 percent of, let’s say, Sh100 million,” he said.

“However, all of a sudden, they are told that they will receive 33 percent of the anticipated amount. How are we going to manage citizens’ expectations? Let’s go back to the drawing board, carry out comprehensive research and come up with the best method of helping retirees meet their expectations.”

Ms Rehema Migilla (Ulyankulu-CCM) said the new pension formula subjects public servants, especially teachers, to unnecessary stress and anxiety, which impact on their productivity.

“Does the money belong to employees or someone else? If the money is deducted from workers’ salaries, why are we imposing conditions that they be paid 33 percent upon retirement with the remainder being disbursed in instalments?” she asked.

“Due to the absence of withdrawal benefits, workers should be allowed to freely withdraw their contributions as is the case with MPs instead of leaving them to die without collecting their benefits,” Ms Migilla said.

The lawmaker added that the issue should be reviewed to end anxiety among public servants.

Mr Joseph Kasheku (Geita Rural-CCM) said some decisions passed by Parliament are taken for granted despite hurting Tanzanians.

“We are building a nation of thieves because they complain every day about this pension payment formula. Paying someone 30 percent of their savings and withholding the remaining 70 percent simply is not right.

“It means that if one’s savings are, say, Sh100 million, they will only be paid Sh30 million upon retirement. Such a person can easily turn into a thief to ensure that they have enough upon retirement,” he said.