Regulatory changes affecting ride hailing services in Tanzania
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The Ministry of State, Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability) recently published the Labour Institutions Wage Order Government Notice No. 687 of 2022 (the New Wage Order). The New Wage Order became operational on 1 January 2023 and revokes the Labour Institutions Wage Order Government Notice No. 196 of 2013.
The New Wage Order sets out the minimum wage in respective sectors as seen below. An employer may pay an employee more than the minimum wage, but employers currently paying their employees wages, below the prescribed wages, must adjust such wages to comply with the New Wage Order.
It is important to note that employers paying higher rates of wages and providing more favourable terms and conditions of employment than the prescribed wages, at the commencement of the New Wage Order, are required to continue to pay such higher wages and provide more favourable terms and conditions of employment, should the employee continue working for the same employer.
The New Wage Order does not alter other terms of existing employment contracts. Accordingly, the employees will continue to be entitled to any other allowance as agreed in their employment contracts.
The New Wage Order provides a new requirement in relation to lorry drivers. Lorry drivers are now entitled to an allowance for the distance of the journey, for overstaying outside the workstation, and for loading and offloading of cargo as agreed upon in negotiations between lorry drivers and employers.
In addition, employers who are in other sectors not provided for in the sectoral minimum wage board should pay their employees a minimum monthly wage of TZS 150,000.