New Public Sector Salary Scale

In July 2025, Tanzania successfully implemented a landmark 35.1% salary increase for public servants, raising the minimum monthly wage from TZS 370,000 to TZS 500,000.

The move, delivered under the leadership of President Samia Suluhu Hassan, has reshaped the country’s wage landscape, boosted worker morale, and set a precedent across the East African region.

Key Outcomes

• Policy Delivered: Public servants across all grades received upward adjustments, ensuring the Tanzania Government Salary Scale (TGS) maintained pay hierarchies and rewarded seniority.
• Economic Foundation: The raise was made possible by 5.5% GDP growth in 2024, strong revenue collection, and stable inflation (3.1% avg. 2024/25). Government finances absorbed the new wage bill without excessive borrowing.
• Budget Shift: The TZS 56.49 trillion 2025/26 budget prioritized wages and social welfare, reallocating resources from some development projects to ensure civil service stability.
• Worker Welfare Beyond Pay: Alongside salary adjustments, reforms expanded maternity and paternity leave, introduced unpaid leave, and broadened union rights, creating a more humane labor environment.
• Political Impact: Trade unions (TUCTA) hailed the raise as “historic,” employers supported it, and the policy significantly boosted the government’s credibility ahead of the October 2025 general elections.
• Regional Leadership: With the new wage (~USD 194/month), Tanzania now leads in minimum wage standards across much of Africa, outpacing regional peers and strengthening its reputation for worker-centered governance.

Conclusion

The successful implementation of the 2025 public sector salary increase marks a new chapter in Tanzania’s social and economic development. It has restored dignity to the workforce, reinforced the value of civil service careers, and positioned the government as both fiscally responsible and socially responsive.

While challenges remain in aligning private sector wages and addressing informal labor, Tanzania has taken a bold step toward inclusive and sustainable growth.