25 June 2014

Tanzania: Minimum Wage Poised for a Raise in 2014/15

Dodoma — THE government will raise the minimum wage in the 2014/15 financial year higher than last year to help cushion lowest earners from the cost of living.

The Minister of State in the President Office (Public Service Management) told the National Assembly on Tuesday that the increment would be higher than the 41 per cent increase made in the 2013/14 budget

. She however would not give more details. "For this year we have increase the minimum wage significantly. The increment last year was 41 per cent.

This time the increase will be much more," she said in her contribution to wind up contributions to the budget. She said the government would continue to gradually lower the Pay-As-You- Earn (PAYE) levels until it reached a single digit as proposed by Members of Parliament.

She said it was the intention of the government to lower the PAYE to a single digit and it had managed to lower the level from 18 per cent in 2008.

The government lowered the PAYE from 13 per cent to 12 per cent in the 2014/15 budget but most of the lawmakers who contributed in the discussions of the budget said the amount was not enough to bring a meaningful relief to employees.

The minister said salary delay experienced last May for civil servants happened because a salary payroll was delayed to accommodate newly employed teachers and doctors.

On complaints about salary delays to new employees she said new employees would get their salaries on the month they reported to their duty station provided they reported before 15th of the month.

The minister said there would be no problem of salary delays if new employees reported at their stations before 15th of a month because they would be accommodated in the payroll system.

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