PRESIDENT Samia Suluhu Hassan has approved the proposed salary increment including a minimum wage for civil servants by 23.3 percent.
The salary proposals which were submitted to the State House are continuation of Prime Minister Kassim Majaliwa's meeting held recently in Dodoma where he received a report on proposed salary increment from the experts committee.
A statement issued on Saturday by the Director of Presidential Communication Unit Zuhura Yunus said that the increment has been done basing on the Gross Domestic Product (GDP), domestic revenue expected to be collected in 2022/2023 financial year and economic situation within and outside the country.
Ms Yunus said following the increment, the government plans to spend 9.7tr/- in 2022/2023 financial year for salaries of all civil servants in central and local government, institutions and government agencies.
According to her budget for salaries for 2022/2023 financial year has an increase of 1.59tr/- which is equivalent to 19.51 per cent compared to the 2021/2022 budget.
Meanwhile, President Samia has received proposals for the new terminal benefits regulations as requested by the Trade Union Congress of Tanzania during the commemoration of the International Workers' Day on May 1 this year.
President Samia has endorsed the proposals and directed relevant ministries to continue collaborating with TUCTA and the Association of Tanzania Employers to finalise procedures of ensuring that lump sum payments of 25 percent which was rejected by stakeholders in 2018 is increased to 33 per cent.
Addressing the public on the International Workers' Day on May 1, President Samia assured workers of a salary review and pay rise in the 2022/2023 financial year, which commences on July 1, this year.
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President Samia stated that salary raise will be implemented, as pledged last year, but not at the amount proposed by the Tanzanian Trades Union Congress (TUCTA).
During the commemorations which were held at the Jamhuri Stadium, TUCTA suggested a monthly minimum salary of at least 1,010,000/-.
Reports show that in the private sector the minimum wage is between 40,000/- and 60,000/- for domestic and farm workers and for industrial workers it is 100,000/-, according to the rates announced by the government in 2013, while the minimum wage for the public sector has been 315,000 since 2015.
President informed workers that the government had taken a number of measures to improve workers' welfare, including tax reductions, noting that it was difficult to meet Trade Unions' demand due to the economic crisis caused by Covid-19.
"The country's economic growth slowed, but we are working hard to ensure things return to normal. And because I promised something (salary increase) last year, something good is on the way; computations are underway, and we will know how much will be increased later," she told the workers.
Over the last decade the government has reduced the tax rate on salaries from 18 per cent in 2012 to 8 per cent last year.
