PAYE rates, NSSF/PSSF contributions, HELSB deductions — everything you need to run compliant payroll for your Tanzanian workforce.
Running payroll in Tanzania requires understanding several mandatory deductions. Get any one of them wrong and you risk penalties from the Tanzania Revenue Authority (TRA).
PAYE is a graduated income tax deducted from employee salaries. The 2026 bands are:
- TZS 0 – 270,000/month: 0%
- TZS 270,001 – 520,000/month: 8%
- TZS 520,001 – 760,000/month: 20%
- TZS 760,001 – 1,000,000/month: 25%
- Above TZS 1,000,000/month: 30%
The National Social Security Fund (NSSF) requires:
- Employee contribution: 10% of gross salary
- Employer contribution: 10% of gross salary
For public sector employees, the Public Service Social Security Fund (PSSF) applies with different rates.
Employees with outstanding HELSB loans have a mandatory monthly deduction. The amount varies based on salary bracket.
BMS Suite's payroll module calculates all of the above automatically for each employee. You set up each employee's salary, flag applicable deductions, and the system:
- Calculates gross pay
- Applies NSSF employee deduction
- Calculates taxable income
- Applies PAYE bands
- Applies HELSB and any other deductions
- Posts all employer contributions to the ledger
Every payroll run produces a full payslip and a ledger posting — ready for audit.
Questions about payroll setup? Email us at billing@bmssuite.online.
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