Tanzania’s president Samia Suluhu has increased the salaries of the least-paid workers in the East African country by 35 per cent.
In a declaration made during the Labour Day celebrations on Thursday, May 1, 2025, Suluhu indicated that the Tanzanian economy had significantly grown by 5.5 per cent and it was only fair that the workers, who had made it possible, be rewarded.
“Kwa mapenzi makubwa, na kwa namna mlivyoiunga mkono serikali tulivyowaomba mfunge mkanda, na mkaamua kujituma na kufanya kazi kwa bidii na kufanya uchumi wetu ukuwe kwa asilimia 5.5 mwaka huu; na kwa kuwa mcheza kwao hutunzwa, baada ya kuangalia jinsi uchumi ulivyopanda, ninayo furaha ya kuwatangazia kwamba mwaka huu, serikali itaongeza kima cha chini cha mshahara kwa watumishi wa umma kwa asilimia 35.1,” Suluhu said to a thunderous applause from workers.
(As a result of your support, and following your heeding of our call that you tighten your belts, our economy grew significantly by 5.5 per cent this year. Because it is only fair that you get rewarded for your hard work, I am pleased to announce an increase of 35.1 per cent in the minimum wage.)
Significant salary raises
Suluhu also noted that the good performance in the country’s economy will also be cascaded to the other salary grades and that everyone will see a significant increase in their salaries.
“Nyongeza hii itakayoanza kutumika mwezi Julai mwaka huu, itaongeza kima cha chini cha mshahara Tsh370,000 hadi Tsh500,000. Ngazi zingine za mshahara nazo zitapanda kwa kiasi kizuri,” she added.
(This increase, which will come into effect in July this year, will see the least-paid government worker take home Ksh24,095 from the initial Ksh17,830, while other salary grades will equally receive major increases.)
In December 2024, Ruto commended Tanzania after a report indicated that it had overtaken Kenya in terms of trade volumes in the East African countries. Tanzania also has markets in South Africa and Ethiopia, stamping its authority as a major trade partner in the East.
“Kenya was the leading country in terms of goods and services we trade in East Africa. Today, Tanzania has overtaken Kenya, and I must commend Tanzania for the progress they are making and that the numbers are growing of trade between our countries,” Ruto said during the EAC summit in 2024.
Ruto’s declaration
During the labour ceremony, Ruto declared major changes, which are set to further ease the burden on Kenyan workers with payslips, noting that retirees’ pensions and gratuities will no longer be subjected to taxes.
Additionally, the head of state also indicated that employers will now directly apply for tax relief, something that the Kenya Revenue Authority previously did.
“To improve workers’ take-home pay, employers will now be required to apply eligible tax relief and exemptions directly when calculating Pay as you earn (PAYE); a significant shift from the current system where such reliefs can only be claimed from the Kenya Revenue Authority (KRA),” Ruto declared.