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The Government through the Minister of Labour, Youth, Employment and Persons with Disability recently published subsidiary legislation through GN 687 dated 25 November 2022, the Minimum Wage Order, 2022 (the Order) repealing the Minimum Wage Order of 2013. The Order is made under Section 39 (1) of the Labour Institutions Act and will come into force on 1 January 2023. It will apply to all employees and employers in all private sectors.
The Order has provided for various definitions including that of Collective Bargaining Agreement and has also adopted some of the definitions from the Employment and Labour Relations Act, Cap. 366 R.E 2019 including the definition of the term “employee” and “employer”.
After the Order comes into force, all employers in the private sector will be required to pay employees amounts, not below the ones prescribed in the Order. It should be noted that the employer is not barred from paying the employee more than the minimum prescribed amount unilaterally or as per the relevant collective agreement. The newly published Order will apply with respect to the following sectors:-
a) Agriculture sector;
b) Health sector;
c) Communication industry;
d) Domestic and Hospitality industry;
e) Private Security services;
f) Energy sector;
g) Transport sector;
h) Construction sector;
i) Mining sector;
j) Private Schools;
k) Trades, Industries and Commercial sector;
l) Fishing and Marine Services sector; and
m) Other sectors not mentioned in this Wage Order.
The second schedule to the Order specifies the amount of minimum wage to be paid to an employee in the private sector in accordance with each sector outlined above.
In addition to payment of accrued annual leave, the Order has further introduced leave allowance which shall be payable to the employee once in every year of continuous service to the same employer.
Pursuant to this Order, where any employee to whom the provisions of the Order apply is at the commencement of the Order entitled to receive wages at a higher rate than those prescribed or provided under the Order, that employee is for so long as is employed by the said employer entitled to continue to receive such higher wages and favourable terms.
Please note that the highest minimum wage among all sectors which have been listed in the first schedule is TZS 592,000 which is applicable in financial institutions while the lowest minimum wage for all sectors listed is TZS 60,000 which is applicable for domestic workers. To read the Minimum Wage Order, 2022 click here.
Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Geofrey Dimoso.
Bupe Kabeta – Associate