A total 19,650 workers have received compensation totalling 100bn/- from the Workers’ Compensation Fund (WCF) since early 2021.

Dr John Mduma, the WCF director general, said at a press briefing in Dar es Salaam yesterday that compensation covers workplace injuries, occupational illnesses and job-related deaths.

Payments include medical expenses, disability benefits, sick leave, funeral assistance and monthly pensions for dependents, he stated, noting that since its establishment in 2015, the fund has enrolled over 2.2 million workers from 38,512 entities.

This reflects a steady rise in national coverage and awareness of employee rights, he said, highlighting that WCF has contracts with regional and referral hospitals, ensuring prompt and specialized treatment for injured workers.

“We pay lifetime benefits to workers who suffer over 30 percent disability. For those unable to care for themselves, compensation is extended to their caregivers,” he specified.

Under the current policy, the minimum monthly compensation for non-permanently disabled workers has increased to 275,703/-, replacing the previous formula, pegged at a measly 10 percent of the worker’s salary.

The WCF mandate is to provide comprehensive social protection to workers against the financial impact of job-related accidents, illness or death, he said, affirming that the payment system has been modernised.

Claims and disbursements are handled digitally through integrated ICT systems connected to government databases and employers, ensuring transparency and efficiency.

He further noted that under President Samia’s administration, the playing field between public and private sectors has been equalized, with both now contributing 0.5 percent of an employee’s salary to the Fund.

To encourage compliance, the penalty on late contributions has been reduced from 10 percent to 2 percent per month, and in some cases, penalty waivers have been granted.

An International Labour Organization (ILO) assessment recently confirmed that the WCF is financially sustainable for at least the next 30 years. As of now, the Fund has a total value of 748 bn/-, with 480bn/- invested, primarily in government bonds, secure bank accounts, and a small stake in a tea factory.

“This success has earned WCF an international ISO certification, making it a learning hub for countries like Kenya, Zambia, Malawi, Ethiopia, Namibia, and even Sweden,” said Dr Mduma.

Dr Abdulissakarim Omar, WCF’s Director of Evaluation Services, said compensation is paid promptly and transparently, with no red tape. All cases are reviewed by a panel of medical experts who determine the extent of disability and appropriate compensation levels.