Social Security

Pension Rights

The National Social Security Fund Act, 1997, provides for both full and partial/early pension. For a full pension, a worker must have attained 60 years of age with at least 180 months (15 years) of contributions. An early pension is also available to workers from the age of 55 years. It is a reduced form of total pension and is paid from ages 55 to 59 (men) or ages 50 to 54 (women).

If a worker does not meet the requirements of a full or partial pension, there is also an old-age grant. The monthly pension is calculated by multiplying the accrual rate of 1/580 by the number of contribution months and by the insured person's Annual Pensionable Emoluments (APE), divided by 12. If the insured person chooses to receive part of the pension as a lump sum, the pension is calculated using 75% of APE. From 1st July 2022, applicable rates for APE is 67%. The lump sum is calculated by multiplying the accrual rate of 1/580 by the number of contribution months and by 25% of the APE, multiplied by a commutation factor of 12.5. From 1st July 2022, applicable rates for APE is 33%.

In case of early retirement, the pension is reduced by 3.6% of the insured earnings used to calculate the pension for each 12-month period the pension is taken before age 60. The early pension must be at least equal to the minimum pension.

The old-age grant is provided at age 60 with less than 180 months of contribution and is equal to the average of the last sixty months of contributions before retirement multiplied by the number of months of contributions.

Source: §23-27 of the National Social Security Fund Act 1997 ; ISSA Country Profile Tanzania

Dependents' / Survivors' Benefit

National Social Security Fund Act, 1997 provides for survivor benefits for dependents, including a widow(er) and children younger than age 18 (age 21, if a full-time student, no age limit for disabled). If a worker dies and he/she have met the requirements of entitlement to old age or invalidity pension or were already getting it, their dependents are entitled to a survivors' benefit.

If there are no dependent children, 100% of the deceased worker's pension is paid to the widow(er). This pension is paid for 2 years only if the widow(er) is younger than 45 years or does not have a child younger than 15 years at the time of the insured worker's death. If there are dependent children, the widow/widower would be paid 40% of the pension, and 60% of the pension would be divided among the children. Pension is split equally in case of more than one widow.

If there is no widow/widower, 100% of the pension is divided among the dependent children (under 18 years or 21 years if receiving full-time education). Survivors' Pension is available for life or until marriage for a widow/widower over the age of 45 years.

Survivors may choose to receive part of the pension as a lump sum, which is calculated by multiplying the accrual rate by 25% of the insured person's Annual Pensionable Emoluments (APE), multiplied by a commutation factor of 12.5. From 1st July 2022, the applicable rates for APE are 33%. If there is no surviving spouse or child, parents of the deceased may be paid 100% of the survivor's pension.

Source: § 33-36 of the National Social Security Fund Act 1997 ; ISSA Country Profile Tanzania

Invalidity Benefit

National Social Security Fund Act, 1997 provides for invalidity benefit in the case of non-occupational accident/injury/disease resulting in permanent invalidity. An insured person is entitled to invalidity benefit on at least 66.7% loss of earning capacity with at least 180 months of contribution or 36 months of contributions, including at least 12 months in the 36 months immediately before the disability began. A medical examination may be required by a medical board of doctors appointed by the Ministry of Health to assess the disability.

The monthly pension is calculated by multiplying the accrual rate by the number of contribution months and by the insured person's Annual Pensionable Emoluments (APE), divided by 12. If the insured person chooses to receive part of the pension as a lump sum, the monthly pension is calculated using 75% of APE. From 1st July 2022, applicable rates for APE is 67%. The lump sum is calculated by multiplying the accrual rate by the number of contribution months and by 25% of the APE, multiplied by a commutation factor of 12.5. From 1st July 2022, applicable rates for APE is 36%. The accrual rate is 1/580 for the first 180 months of contributions and 1/1200 for additional months of contributions.

Disability grant is paid as a lump sum amount if the insured worker is assessed with at least 66.7% loss of earning capacity but has less than 180 months of contributions

Source: §28-32 of the National Social Security Fund Act 1997 ; ISSA Country Profile Tanzania; §20 of the Social Security Laws (amendments) Act, 2024