Workers rejoice as Samia dishes out 35.1 percent pay rise

In Simiyu, the Trade Union Congress of Tanzania (Tucta) regional chairman, Mr Kulwa Dwese, said the increase comes at a critical time. “Many employees in the region are happy about the move, as it will provide the much-needed relief,” he said.

In Njombe, government workers expressed gratitude to President Hassan, noting the salary hike would serve as a morale booster. Mr Wiston Kilangi, an employee of the National Social Security Fund (NSSF), said the President’s speech restored hope among workers.

 “We were eagerly waiting for the President’s message on Workers’ 1st, and the salary increase has made us happy. We, the workers, promise to continue working hard,” he said.

International Labour Organization (ILO) Resident Director for East Africa, Ms Caroline Mugalla, said Tanzania continues to demonstrate regional leadership in labour affairs.

“The ILO will continue to work with Tanzania, as the success of workers is the ultimate goal,” she said, urging collaboration among all stakeholders to ensure labour rights are realised.

In Mbeya, a retired teacher and private sector employee, Mr Ezekiel Kamanga, said the salary increase will motivate civil servants and ease financial difficulties. However, he cautioned that increased money circulation from July could raise the cost of living.

Speaking in Singida during national Workers’ Day commemorations, Tucta President Tumaini Nyamhokya lauded the government for addressing several longstanding concerns, including delayed promotions and rank upgrades.

 “Trust between workers and the government has improved significantly. Many who were previously demoted due to fake certificates have now received six percent salary adjustments, enabling them to progress,” he said.

Mr Nyamhokya added that most of the union’s demands had been addressed, with a few still under review. “If it pleases you, Mama, we kindly ask you to speak on behalf of the workers, as you understand their needs,” he told the President.

Vice President Dr Philip Mpango emphasised the central role of workers in national development, stating that economic growth is inseparable from workforce productivity.

He also urged workers to register in the permanent voter register to secure their voice in choosing future leaders. In her keynote address, President Hassan said the new wage adjustment will come into effect in July, increasing the minimum monthly salary for public servants from Sh370,000 to Sh500,000.

“In recognition of your hard work and commitment to national development—even at a time when we asked you to tighten your belts, I am pleased to announce that the government will increase the minimum wage for public servants by 35.1 percent,” she declared to loud cheers.

The President said adjustments would not be limited to the minimum wage, adding that other salary bands would be revised in line with budgetary capabilities. “I assure you that salary increments are not limited to the minimum wage. Other workers will benefit as well,” she added.

She also revealed that the government, through the Minimum Wage Board, is reviewing pay structures in the private sector.

 “In the meantime, I urge the Ministry of Labour and trade unions to implement collective bargaining agreements to secure better terms for employees in the private sector,” she said.

President Hassan reiterated her government’s commitment to continuously improving workers’ welfare in line with economic growth.

She reminded workers of her address during last year’s Labour Day, when salary increments were deferred due to fiscal constraints.

“Despite the tough times, we continued to promote staff and improve other benefits. Now, with the economy growing by 5.5 percent, it is only fair that we share the gains,” she said.

She called on workers to safeguard national unity, maintain peace, and participate fully in the October general election.

Analysts have noted, however, that the actual take-home pay for those in the minimum wage category will depend on the government’s fiscal measures in the 2025/26 financial year. Currently, only workers earning Sh270,000 or less per month are exempt from Pay As You Earn (PAYE).

With the new Sh500,000 minimum salary, and after a five percent pension contribution to PSSSF, a worker could see deductions of about Sh16,400 in PAYE— leaving a net salary of approximately Sh459,000, assuming no changes in tax brackets.