Tanzania's payroll taxes in 2025 include PAYE, NSSF, SDL, WCF, and optional TUICO. Employers must calculate correctly, deduct timely, and remit by statutory dates. Sunpro Systems simplifies this complexity—giving you confidence in accuracy, compliance, and workforce satisfaction.
1. Pay-As-You-Earn (PAYE)
Employers must deduct PAYE on an employee’s taxable salary monthly and remit it to TRA.
2025 PAYE rates (TSh/month)
- Up to 270,000 → 0%
- 270,001–520,000 → 8% on excess
- 520,001–760,000 → TSh 20,000 + 20% on excess
- 760,001–1,000,000 → TSh 68,000 + 25% on excess
- Above 1,000,000 → TSh 128,000 + 30% on excess
Non-Residents: taxed at 15% flat on employment income.
Due date: 7th of the following month .
2. TUICO
TUICO is the Tanzania Union of Industrial and Commercial Workers. Membership dues are voluntary, and typically deducted directly from salaries. Regulated at branch level; no statutory rate.
3. Skills Development Levy (SDL)
Effective 1 July 2023, SDL was reduced from 4% to 3.5% of gross monthly emoluments, as per the Finance Act 2023
- Applies to employers with 10 or more staff.
- Monthly remittance is due by the 7th of the following month to TRA.
- Employers with fewer than 10 employees are exempt from SDL and no longer required to file SDL returns.
4. National Social Security Fund (NSSF).
- Total: 20% of gross salary (10% employee, 10% employer).
- Max salary: capped at TSh 3,600,000/month.
- Due date: 15th of the following month.
4. Workers Compensation Fund (WCF)
The Workers Compensation Fund was established under the Workers Compensation Act (Cap 263) and began operations in July 2015. It provides compensation to employees for work-related injuries, occupational diseases, disabilities, and death benefits for dependents.
- Private sector employers: contribute 0.5% of total monthly gross emoluments.
- Public sector employers: contribute 0.5% of gross emoluments.