Labour union hails wage surge, pension reforms

TUCTA President Tumaini Nyamhokya

What you need to know:

  • The Confederation of Tanzania Trade Unions commended the government for addressing a long-standing worker agenda that demanded improved pay and enhanced social security protections 

Dar es Salaam. Tanzania’s largest labour union has praised President Samia Suluhu Hassan’s administration for a sweeping set of labour reforms that raise wages and restructure pension provisions, describing the measures as transformative for workers’ livelihoods.

The Confederation of Tanzania Trade Unions (TUCTA) commended the government for addressing a long-standing worker agenda that demanded improved pay and enhanced social security protections.

Speaking at a press conference in Arusha, TUCTA President Tumaini Nyamhokya confirmed the introduction of a new national minimum wage alongside historic changes to retirement calculations that had been pending for years.

Mr Nyamhokya welcomed a 34.4 per cent increase in the private sector minimum wage, which lifts the floor from Sh275,060 to Sh358,322 per month, with the adjustment to take effect on 1 January 2026. He noted that public servants had received a 35.1 per cent rise in mid-2025.

“We commend the Ministry of Labour for its inclusive approach; we participated on the Minimum Wage Board and chaired a specialist committee that provided research-based recommendations to government,” he said.

He highlighted significant reforms to pensions and social security, measures intended to reduce retirees’ exposure to economic shocks.

“The minimum monthly pension has been raised by 50 per cent, from Sh100,000 to Sh150,000,” Mr Nyamhokya said, adding that pension payments will be indexed annually by 2 per cent from January 2025 to preserve purchasing power in the face of inflation.

He cited a range of complementary interventions that further demonstrate the state’s commitment to worker welfare: the Pay As You Earn (PAYE) tax rate for minimum wage earners was reduced from 9 to 8 per cent, increasing disposable income for low-paid employees.

The government also removed a 6 per cent levy on Higher Education Loan beneficiaries and extended National Health Insurance Fund (NHIF) coverage for members’ children from age 18 to 21.

In addition, the administration pledged to fund promotions for hundreds of thousands of public servants over 2024 and 2025, a move Mr Nyamhokya said would improve morale and progression prospects.

He concluded with a direct appeal to the nation’s workforce: “To thank is to ask again.” He urged workers to turn out for the 29 October 2025 General Election and to endorse leaders committed to advancing labour rights.

Mr Nyamhokya said the reforms set a new benchmark for labour relations in Tanzania.

TUCTA said it will monitor implementation closely and urged employers, labour inspectors and regulatory bodies to collaborate to ensure effective, timely and transparent enforcement nationwide.