PRESIDENT Samia Suluhu Hassan has announced a 35.1 percent increase in the minimum wage for public servants—from 370,000/- to 500,000/- starting July 1.

In a nationwide address for the May Day celebrations at Jamhuri Stadium in Singida, the president said the raise reflects the government’s commitment to improving workers’ welfare, in step with the country's 5.5 percent economic growth and improved revenue performance.

“In recognition of your hard work and dedication to national development, even in challenging times, the government will increase the minimum wage by 35.1 percent,” she declared to thunderous applause from thousands of workers, union leaders and state officials.

The wage increase builds on the 23.3 percent wage rise in 2022 which ended nearly a decade of stagnant public sector pay, with salary scale adjustments for other levels set to follow depending on budget availability, she explained.

“This is not just about numbers—it’s about restoring dignity to our workers and ensuring they benefit from our growing economy,” she said, asking employers in the private sector to review their pay structures for adherence to fair labour practices.

The Minimum Wage Board is reviewing private sector pay, she said, urging the ministry responsible for Labour and the trade unions to formalise collective bargaining agreements.

She stressed ongoing expansion of healthcare access through the National Health Insurance Fund (NHIF), citing initiatives like distributing delivery kits to expectant mothers in Singida as part of the government’s maternal health goals.

With the general election set for late October, citizens need to come out and support leaders who value workers’ rights, she stated, projecting that step by step, life will be improved for every worker.

Vice President Dr Philip Mpango echoed the call for civic participation, urging workers to register and vote, acknowledging the vital role workers play in driving economic growth.

Ridhiwani Kikwete, who holds the Labour docket in the cabinet, hailed the president for reducing Pay as You Earn (PAYE) from 9 percent to 8 percent and streamlining pension systems.

He cited the factual surpassing of targets set in the CCM election manifesto to create eight million jobs, asserting that the total number of jobs created in various sectors was approaching nine million.

Over 412,000 public servants obtained promotions in the past five years, he stated, with labour unions welcoming the wage increase.

TUCTA president Tumaini Nyamhokya called the raise historic, reaffirmed workers’ full support for the president in the scheduled polls, hailing the incumbent for resolving long-standing issues.

These include stalled promotions, pension reforms and lifting the six percent student loan interest, he said, while Hery Mkunda, the TUCTA secretary general, applauded the 90 percent promotion rate for public servants.

This has been the case in the past few years, similarly praising the introduction of the e-transfer system to streamline staff movements, urging action to resolve prolonged acting appointments.

He also expressed support for legal reforms to prevent rival unions that threaten workers’ unity, while Oscar Mgaya, chairman of the Association of Tanzania Employers (ATE) appreciated the wage hike, noting that it is a boost to productivity and industrial peace.

He highlighted the need for speeding up ongoing labour law reform and providing for youth skills development, meanwhile as TUCTA Dar es Salaam coordinator Meshack Shalota pointed at the need for expanded NHIF coverage.

He cited retired private sector workers as a left out group, along with workers exposed to unsafe conditions or to exploitative contracts, saying that this is prevalent in the construction sector.

In Shinyanga, health workers celebrated May Day by planting 500 trees and holding a 7.8-kilometre race to promote health and environmental awareness.