Abstract
Formal Sector Employment and Earnings is an annual survey conducted by the Office of the Chief Government Statistician, Labour Statistics Unit under Social Statistics Department. The main objective of the survey is to provide information on employment and earnings of employees to be used for planning, policy formulation, and in decision-making processes. The specific objectives were to obtain the total number of employees of formal establishments from both government and private sectors, to obtain annual and average salaries paid to employees, wage bills used for employees, also to obtain the total number of new worker employed, number of new vacancies available, number of retired and fired/quit employees. The survey collects information on employees, such as total number, sex, citizenship, employment term, earnings, allowances and other benefit paid to employees.
This report illustrates the methods and findings of the survey. It consists of seven chapters, namely: Concept, Definition and Survey Methodology, Employment, Wage rate, Cash earnings, Wage bill, New Employees and New vacancies, retired and fired/quit employees.
Employment
The total employment in formal sector was 67,095 out of whom 36,953 (55.1 percent) were males and 30,142 (44.9 percent) were females. Out of total employment, 52.8 percent were engaged in Government sector, 37.6 percent in Private sector and 9.6 percent in Parastatals. Classification by terms of employment reported that 64.0 percent (42,970 employees) were regular employees. Contractual and casual employees comprised 32.8 percent (21,997 employees) and 3.2 percent (2,128 employees) respectively. Non-citizen employees account for only 1.4 percent of total employment. The distribution of employment by industry shows that about 26.7 percent of employees were engaged in Education sector while 18.8 percent were in Accommodation and food services activities. The industry with the least number of employees was real estate which has 0.2 percent of total employment.
Wage Rate
Most (40.4 percent) of regular citizen employees earn between TZS 300,000 and TZS 399,999 per month. About 43.3 percent of the government and 48.0 percent of private sector regular citizen employees earn between TZS 300,000 and TZS 399,999 while 55.5 percent of government parastatals employees earn 600,000 and above per month. Both male and female regular citizen employees account for 41.4 and 39.4 percent earn between TZS 300,000 and TZS 399,999 per month respectively.
Cash Earnings
The average monthly salary of regular citizen employees was TZS 496,018 per month where males earn TZS 490,744 and females earn TZS 500,581 per month. The average monthly salary of Government Parastatal employees was observed to be TZS 816,527; the Government employees’ average salary was 475,397 while for Private employees it was 425,589.
Annual Wage Bill
According to this survey, the annual wage bill is the employer’s cost which includes annual salary, free rations and other benefits. The percentage share of annual salary was high compared with percentage share of other benefit and free rations. On average, the percentage share of annual salary from the total wage bill was 75.3 percent while the percentage share of other benefits was 21.1 percent.
New Employees
The total number of employees employed in 2019/20 was 4,654 persons of whom 2,017 employees (43.3 percent) were males and 2,637 employees (56.7 percent) were females. Out of total new employees, 71.0 percent were employed in the Government sector, 7.8 percent in Government Parastatals and 21.2 percent in the Private sector.
New Vacancies, Retired and Fired/Quit Employees
The findings indicate that, the largest proportion of new vacancies in 2019/20 were in government sector (94.3 percent) compared with the remaining sectors. Largest proportion of new vacancies require Certificate (45.4 percent) followed by tertiary university (28.5 percent) of which most of such vacancies were candidates in Technicians and Associate professionals. However, the result shows that, the total number of retired employees in 2019/20 was 4,330 persons of whom 3,926 persons were in the Government sector, 349 persons in Government Parastatals and 55 persons in the Private sector. In addition, both Government and Government Parastatals sectors had higher proportions of male fired/quit employees than female employees unlike Private sector