Hiring and payroll in Tanzania

Introduction

Tanzania is an East African country with a population of 63 million people. As a developing country, Tanzania’s young population has embraced technology, becoming one of Africa’s shining lights for tech and innovation.

As more developed countries seek talent outside their regions, Tanzania offers a reduced employment cost for organizations planning to hire talent at reduced costs.

This article highlights everything you need to know about hiring tech talent in Tanzania and the processes involved in managing payroll in Tanzania.

Hiring employees in Tanzania

About two-thirds of Tanzania’s population is under 25 years of age. This young population provides rewarding benefits for organizations planning to hire a remote team in Tanzania. As Tanzania is a developing country, it offers a lower employment cost for organizations than talent in other developed countries.

How to hire employees in Tanzania

Organizations planning to hire a remote team in Tanzania can check popular Tanzanian job portals such as Mabumbe, Sekretarieti ya Ajira, JamiiForums, ZoomTanzania, Vijana jobs, and many more. LinkedIn is also an innovative platform for hiring employees in Tanzania.

Hiring with an Employer of Record in Tanzania

An Employer of Record is a third-party platform that enables global organizations to hire employees and contractors, onboard talent, manage an organization’s payroll and ensure compliance with country-specific employment laws and tax regulations.

The Employer of Record in Tanzania helps companies carry out employment-related activities in compliance with Tanzania’s employment laws. Also, The Employer of Record in Tanzania enables global organizations to hire a remote team, onboard talent, manage payroll and ensure compliance with Tanzania’s laws without setting up subsidiaries.

Payroll in Tanzania

Payroll in Tanzania follows the country’s employment and payroll laws. The Tanzanian employment laws govern the payment method, payments for leaves and vacations, termination of employment, and more.

Ensuring compliance with the payroll laws in Tanzania is crucial. Although, it can be challenging, especially for organizations entering the Tanzanian market.

However, managing a team in Tanzania requires determining the most suitable means to handle payroll in Tanzania. Two of the most essential and common standards include

Making employee payments through subsidiaries

To hire employees, organizations must also comply with the legal requirements for paying employees in Tanzania. One of the requirements is remitting taxes, statutory social contributions, and employee deductions. Employers can only make these payments by partnering with an established Tanzanian company or setting up a subsidiary in the country.

Payroll in Tanzania via an Employer of Record platform

Setting up subsidiaries is challenging, time-consuming, and resource-intensive. However, having a partner or an entity is crucial before managing hiring and payroll in Tanzania for your team.

But with an Employer of Record platform, organizations can manage their payroll without setting up subsidiaries or operating in Tanzania. They can do this because the Employer of Record platform acts as the legal employer on the organization’s behalf, handling all the requirements to hire a remote team and manage payroll in Tanzania.

The Cost of Hiring an Employee in Tanzania

Organizations planning to hire a remote team in Tanzania must consider the cost and resources it will require. Like every business pursuit, understanding the financial requirements is key to managing growth expectations and helps in efficient planning and structure of the organization.

Therefore, the cost required to hire an employee in Tanzania entails the following.

• Business registration or subsidiary establishment expenses
• Costs of acquiring a legal team
• The employment and payroll platform fees
• Job portals ad placement fees
• Interviews and background checks cost

Organizations planning to hire a remote team in Tanzania can do so at a cost-effective price by partnering with an Employer of Record platform like Skuad. Skuad is a global employment and payroll platform that handles the entire employment lifecycle of organizations in Tanzania by handling all employment-related activities and ensuring compliance with Tanzanian employment laws.

Conclusion

An Employer of Record offers the best solution for organizations planning to hire a remote team or manage payroll in Tanzania. While expanding into a new country is challenging, an Employer of Record platform enables organizations to hire contractors and full-time employees, onboard talent, manage payroll, and ensure all employment-related activities comply with Tanzanian employment laws.

Employer of Record platforms like Skuad ensures that organizations can build globally distributed teams quickly and without hassles. To know more about Skuad, book a demo today.