Dar es Salaam. The government, through the Prime Minister's Office for Labour, Youth, Employment, and Persons with Disabilities, has announced a new minimum wage for the private sector, increasing it from Sh275,060 to Sh358,322 — a rise of 33.4 percent.
The revised wage will take effect on January 1, 2026 and will apply across multiple sectors, including agriculture, health, communications, transport, hospitality, mining, commerce, and manufacturing. It also covers private schools, security services, energy, fishing and maritime services, sports and culture, and other general services.
Earlier this year, on May 1, 2025 the government raised the minimum wage for public servants by 35.1 percent.
Announcing the new wage on Friday, October 17, 2025 the Minister of State in the Prime Minister’s Office (Labour, Youth, Employment and Persons with Disabilities), Ridhiwani Kikwete, emphasised that the increase is a legal requirement.
“The last official announcement on minimum wage was made in 2022, and the law requires a review every three years. I urge all private sector employers to comply fully with this directive, as failure to do so will result in legal action,” Kikwete said.
He added that his office would closely monitor compliance, provide guidance to employers and workers, and conduct regular evaluations to ensure full implementation.
Following the announcement, the Association of Tanzanian Employers (ATE) welcomed the new wage, noting that it aligns with a joint assessment involving government, trade unions, and employers.
ATE Chief Executive Suzanne Ndomba encouraged businesses to begin internal consultations ahead of implementation to adjust salary structures accordingly.
“As an association, we will continue supporting employers to implement the directive, ensuring they remain on the right side of the law,” Ndomba said.
Deputy Secretary General of the Trade Union Congress of Tanzania (TUCTA), Ms Rehema Ludanga described the new wage as a significant step forward for private sector workers, while urging employers to comply fully.
“This minimum wage sets the baseline. Employers who already pay above it should not reduce salaries. Adjustments may be made based on sector productivity, but no employee should earn below this threshold,” Ludanga explained.
Independent analyst Christopher Makombe highlighted the broader economic benefits of the increase, noting it could improve living standards, stimulate spending, boost business growth, enhance productivity, reduce income inequality, and contribute to sustainable development.
“Higher wages are likely to drive greater household expenditure, which in turn fuels economic activity and increases government revenue through taxation,” he said
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