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Severance pay calculator Tanzania

When your employer ends your employment after at least 12 months, you are owed severance pay. Enter your daily basic wage and your years of service.

Severance is not paid for a fair dismissal for misconduct.

How it's calculated

Severance pay is at least 7 days' basic wage for each completed year of continuous service.
Only the first 10 years count.
It is due when you have completed 12 months of continuous service and the employer ends the employment.

An example

After five years at TSh 40,000 a day, severance pay is TSh 1,400,000.

Frequently asked questions

Is severance paid if I resign?

The Act links severance to the employer ending the employment.

When is no severance due?

On a fair termination for misconduct, or if you unreasonably refuse alternative employment.

What is basic wage?

Pay for ordinary hours, without allowances, overtime or extra pay for night or holiday work.

Key terms

Severance pay: A payment for each completed year of service when the employer ends the employment.

The same calculation in other countries

Up-to-date official data

Data checked against the official source on 17 October 2026.

We check the official sources automatically, every day.

Government Gazette (Laws.Africa commons)Employment and Labour Relations Act, 2004 (Act No. 6 of 2004), section 42(1)

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