Key Changes Introduced by Labour Institutions (Minimum Wage for Private Sector) Order, 2025

The New Wage Order applies to all employees and employers in the private sector and will take effect on 1 January 2026. This alert highlights the key differences between the 2022 Wage Order and the New Wage Order.

The New Wage Order largely retains the same sectors as the 2022 Wage Order, with the following noteworthy changes: “Commercial sector” and “fishing and marine services sector” have been removed and are incorporated under “trades and finance sector” and agriculture sector, respectively.

In addition to annual leave, employees in the private sector will be entitled to a “leave travel allowance” once every two years of continuous service with the same employer; and

Two new sectors have been introduced: Sports, arts, entertainment, gaming activities; and Waste collection, processing and disposal activities.

Therefore, the New Wage Order will apply with respect to the following sectors:-

1. Agriculture sector;
2. Health sector;
3. Communications industry;
4. Domestic work or services;
5. Hotel and Hospitality services;
6. Private Security services;
7. Energy sector;
8. Transport and shipping sector;
9. Construction sector;
10. Mining sector;
11. Private School services
12. Trades and finance sector;
13. Industrial sector;
14. Sports, arts, entertainment, gaming activities;
15. Waste collection, processing and disposal activities; and
16. Other sectors or areas not specified in this Order.

Increased Minimum Wages
The Second Schedule to the New Wage Order specifies the minimum wage amount to be paid to an employee in the private sector in accordance with each sector outlined above.

While the highest monthly minimum wage among all sectors under the 2022 Wage Order was TZS 592,000 (approx. USD 240) for financial institutions, under the New Wage Order, this has now increased to TZS 765,000 (approx. USD 310)  and applies to international companies operating in the energy sector.

On the other hand, the lowest monthly minimum wage for all sectors listed remains for domestic workers, and this has now increased from TZS 60,000 (approx. USD 24) to TZS 80,000 (approx. 32.4). For further information, please refer to our previous alert, which unpacked the 2022 Wage Order.

Please note that the monthly minimum wage for any other sector or area not specified in the New Wage Order has also increased from TZS 150,000 (approx. USD 60) to TZS 175,000 (approx. USD 71).

Click here to download and read the New Wage Order.

Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Geofrey Dimoso.

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Contributor
1. Bupe Kabeta – Principal Associate
2. Ruth Nnko – Trainee Lawyer