Talent knows no bounds. You can find skilled professionals in countries all over the world. So if you’re looking for new team members, consider hiring from abroad. Tanzania, for example, has a massive pool of English-speaking professionals ready for a challenge.
Hiring global remote talent on your own can be challenging, though. An Employer of Record (EOR) offers a simple and straightforward way to hire and pay global talent legally. It provides everything you need to hire, onboard, and manage full-time employees.
This guide will explore Tanzania’s talent pool and how to tap into it effectively.
Why Hire Talent in Tanzania?
There are several reasons why you should consider hiring from the largest country in East Africa. Hiring remote talent from Tanzania helps save businesses a ton on labor costs, due to its significantly lower cost of living than many developed economies.
Tanzania has a large and diverse talent pool of skilled workers, many of whom have experience in IT, engineering, finance, and customer service. The tech scene in particular has been on the rise, driven by a young and tech-savvy population, a growing mobile market, and supportive government policies.
Tanzanians have a strong sense of cultural awareness and are often able to adapt well to different cultural norms and expectations, making them valuable assets for companies operating in multicultural environments.
How Can I Legally Hire an Employee in Tanzania?
Things can get complicated if you want to hire talent in Tanzania on your own. To hire in Tanzania, businesses must establish an entity based in the country. The process can be a headache and is only worthwhile if you intend to practice business in Tanzania long-term.
EORs offer an easy, straightforward way to hire full-time employees from Tanzania. An EOR, like Borderless, serves as a broker and facilitates the processes involved in global hiring. EORs already have an entity in place that’s capable of hiring talent, onboarding them, and ensuring local compliance.
What Does an EOR Do?
EORs ensure you maintain strict compliance with local laws and regulations in the countries you hire talent from. They remove the legal roadblocks involved in hiring globally so that you can focus on growing your business.
Hiring laws vary considerably worldwide. It can be challenging to keep up with constantly changing regulations, but it’s critical to comply with them to avoid legal implications. EORs take care of the following processes and ensure they’re fully compliant:
- Work visas and permits
- Employment contracts
- Onboarding
- Tax documentation and filing
- Payroll processing
- Employee benefits
- Intellectual property protection
- Termination
EORs handle all of the tedious administrative tasks associated with these processes. They generate compliant employment contracts, collect tax documentation, file it per local laws, and so much more.
Employee Insurance and Benefits
Staying competitive is always important, especially in a tight labor market. An EOR will help you stand out from the crowd with a comprehensive benefits package, including generous health and wellness benefits, time off, financial security, and much more.
It will ensure you provide your team members with what they’re legally entitled to and help you attract top talent with attractive offerings.
Vacations and Public Holidays
The minimum annual leave entitlement for employees in Tanzania is 28 working days per year, which is equivalent to 4 weeks of paid leave. Note that employees who have worked for less than 12 months are entitled to 1 day of leave for every completed month of service.
In addition to other forms of leave, such as sick leave, employers are required to give Tanzanian employees the following public holidays off work.
- January 1: New Year's Day
- January 12: Zanzibar Revolution Day
- Varies: Good Friday
- Varies: Easter Monday
- May 1: Labor Day
- April 26: Union Day
- Varies: Eid al-Fitr
- Varies: Eid al-Adha
- October 14: Nyerere Day
- December 9: Independence Day
- December 25: Christmas Day
- December 26: Boxing Day
Note that the dates for Eid al-Fitr and Eid al-Adha may vary slightly depending on the sighting of the moon. Additionally, some regions or cities within Tanzania may also have local public holidays.
Taxes and Social Security Contributions
Tanzania operates a Pay As You Earn (PAYE) system for income tax collection. The tax rates are progressive and range from 0% to 30% depending on an individual's income. Employers are required to deduct and remit taxes to the Tanzania Revenue Authority (TRA) every month.
The National Social Security Fund (NSSF) is responsible for collecting social security contributions in Tanzania. Both employers and employees are required to contribute to the NSSF. The current contribution rate is 20% of an employee's monthly basic salary, up to a maximum of TZS 1,800,000 per month.
In addition to the NSSF, there is also the Workers Compensation Fund (WCF), which provides compensation to employees who are injured or disabled at work. Employers are required to contribute 0.5% of their employees' salaries to the WCF.
An EOR, like Borderless, will ensure you remit payroll taxes on time, every time. With the support and expertise of an EOR, social security contributions are simplified, and taxes are filed accurately and compliantly. So you can cut back on busy work and focus on growing your business.
What Are the Advantages of Going Through an EOR in Tanzania?
Working with an EOR comes with a range of benefits.
- Saves time and money
- Minimizes risks and avoids penalties related to non-compliance
- Cuts back on busy work
- Improves retention and talent attraction
- Expands your talent pool
- Keeps your data safe and secure
- Keeps you up to date on hiring trends
These are just some of the ways an EOR can positively impact your business. Sign up with Borderless to explore what an EOR can do for you.
How Do I Choose the Right EOR for Me?
With so many EORs to choose from, it’s important to determine which one suits your individual needs. It’s helpful to keep the following considerations in mind.
- Expertise: Choose an EOR with a history of hiring, onboarding, and managing employees in the countries where you want to hire. Checking this box will help ensure your EOR of choice maintains compliance every step of the way.
- User experience: It’s important to provide your team with an easy-to-use, intuitive EOR platform packed with self-service options. The goal is to integrate it into your team's existing workflow stress-free.
- Support: Turn to an EOR with a solid team of experts with a proven track record. Ensure that they’ll be there to lend you support when you need it.
- Security: Keeping your data safe and secure is paramount. This is especially true when working with a globally distributed team, leaving you more vulnerable to cyberattacks. So, choose an EOR that has a robust set of data security standards and protocols.
Borderless: The Employer of Record Your Company Needs
Broaden your horizons by hiring global talent. Use Borderless as your EOR of choice to expand your talent base and get the most out of your global hiring experience. Get in touch and book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
