Tanzanian President Samia Suluhu Hassan has announced a 35 percent increase in the minimum wage for government employees during her address to thousands of workers at the May Day celebrations held in Singida Municipal.

She explained that the decision stems from the government’s commitment to improving the welfare of workers, who have made significant contributions through their hard work, which has helped the national economy grow by 5.5%.

“This salary increase, which will take effect in July this year, will raise the minimum wage from TZS 370,000 to TZS 500,000. Other salary levels will also be adjusted upward based on what the budget allows. But let me assure you the increase is substantial,” President Samia said.

The last time the government raised the minimum wage for public employees was in 2022, when it was increased by 23.3%.

Regarding the private sector, she said that the Minimum Wage Board is still conducting an assessment aimed at improving minimum wage levels in that sector.

“In addition to the board’s work, I continue to encourage ministries and labor unions to engage in discussions with employers to implement better employment contracts in the private sector, so that they align with those in the public sector,” President Samia added.

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She went on to say, “Our promise as a government is to continue improving working conditions, including employee benefits, as long as the economy allows.”

In the 2024/25 budget, the government allocated TZS 11.77 trillion for government employees’ salaries, representing 24 percent of total government expenditure. Due to this increase in the minimum wage, the salary budget is expected to rise in the upcoming national budget, which is currently under discussion in Parliament in Dodoma.

Meanwhile, the Secretary General of the Trade Union Congress of Tanzania (TUCTA), Henry Mkunda, praised the government for its ongoing efforts to improve workers’ welfare.

He highlighted initiatives such as reducing the lowest Pay-As-You-Earn (PAYE) tax rate from nine percent to eight percent, increasing the minimum pension from TZS 100,000 to TZS 150,000, and promoting 90 percent of public employees to higher job grades.