WORKERS are optimistic that their lives will improve with the 23.3 per cent minimum pay increase announced on Saturday.
"It is a great victory for workers," Tumaini Nyamhokya, President of the Tanzanian Trade Union Congress (TUCTA), said. "We applaud President Samia Suluhu Hassan's action, which shows that she cares about workers."
TUCTA had previously proposed a higher minimum wage. The last pay raise for civil servants was seven years ago.
Mr Nyamhoka noted that the hike will aid workers in their economic recovery since the cost of living has increased and that he believes it is only the beginning, as the rate will continue to rise in the future as the demands of time dictate.
"We have received the pay rise well because it was President Samia's promise during workers' day festivities, and several employees were promoted last year and others are still being promoted," he said.
Prof Humphrey Moshi of the University of Dar es Salaam Business school (UDBS) commended President Samia for her decision, saying the move will enable workers to meet some costs of living.
However, he suggested that the move should not only end with the minimum wage workers in the civil service.
"Salary increment should be for all, the cost of living is high, so there was need for this adjustment in the pay for civil servants," he said.
He also suggested the need for the government to extend its tax base and reduce unnecessary government expenditure.
"This will help individuals face the impact of inflation in their daily expenditure," said Prof Moshi during an interview with the Sunday News.
Tanzania's minimum wage is set by categories covering various employment sectors. The minimum wage ranges from 40,000/- to 315,000/- per month.
Ms Suzan Ndomba, Executive Director of the Tanzania Employers' Association (ATE), said the salary hike was just for the public sector because the government paid their salaries.
In terms of the private sector, Ndomba stated that the Minimum Salary Board for the Private Sector is still in the process, and that ATE has members on the Board, so employers would be consulted on wage increases.
She elaborated on the hike in the private sector, saying that after receiving the Board's recommendations, the relevant minister would announce the salary rate in the newspaper.
She added that the minister assured them that before public employees started getting paid, the private sector would be given their minimum salary.
Deus Seif, the Secretary-General of the Tanzania Teachers' Union (TTU), stated that teachers understood President Samia's pledge of a pay raise at the May Day celebrations and congratulated her for keeping her word and authorising a salary increase. "We stated that we have faith in our President, and I see that the situation has been resolved."
"After your announcement at the International Workers' Day celebration, teachers understood you and said, 'We're with you, we're working.' If you were able to promote 92.9 per cent of all teachers in the year 2021/2022, we only knew this pay hike would succeed," said Mr Seif.
President Samia approved the proposed salary increment, including a minimum wage for civil servants by 23.3 per cent.
The salary proposals which were submitted to the State House are a continuation of Prime Minister Kassim Majaliwa's meeting held recently in Dodoma where he received a report on the proposed salary increment from an experts' committee.
A statement issued yesterday by the Director of Presidential Communication Unit, Zuhura Yunus said that the increment has been done based on the Gross Domestic Product (GDP), domestic revenue expected to be collected in the 2022/2023 financial year, and economic situation within and outside the country.
Ms Yunus said following the increment, the government plans to spend 9.7tri/- in the 2022/2023 financial year for salaries of all civil servants in central and local government, institutions, and government agencies.
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According to her, the budget for salaries for the 2022/2023 financial year has an increase of 1.59tri/-, 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 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 for ensuring that lump sum payments of 25 per cent which were rejected by stakeholders in 2018 are 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.
