The Revolutionary Government of Zanzibar has announced a 30% increase in the minimum wage for private sector workers with written employment contracts, raising the monthly wage from Sh347,000 to Sh450,000. This change, effective January 1, 2027, aims to improve workers' welfare and reflect the current economic conditions and cost of living. The announcement was made by Minister for Labour, Employment, Youth and Empowerment Ali Suleiman Ameir on October 31, 2026.
The new rates also include increases for workers in small institutions, daily workers, domestic workers, and foreign workers. Workers with written contracts in small institutions will receive a 20% rise from Sh250,000 to Sh300,000 per month. Daily workers will see their minimum wage rise to Sh35,000 for skilled employees and Sh30,000 for unskilled workers, up from Sh30,000 and Sh25,000 respectively. Domestic workers living in their employers' homes will receive Sh110,000, up from Sh100,000, while those living outside will get Sh130,000, up from Sh120,000.
The minimum wage for foreign workers will increase from $1,000 to $1,500 a month. Minister Ameir emphasized that the rates are minimum payments and do not prevent employers from paying higher salaries as per employment contracts. Private sector employers have been given three months to adjust their budgets, payroll systems, and employment contracts according to the new rates. This move follows the government's decision to raise the minimum wage for public servants from Sh300,000 to Sh500,000 a month, effective October 2026.
Minister Ameir directed the Labour Commissioner to ensure every private sector employee has an employment contract by December 2026. He stressed that no worker should be without a contract. The ministry's Permanent Secretary, Ms Salama Mbarouk Khatib, highlighted that wages should be viewed as a tool for building good relations between the government and the private sector. This initiative aims to strengthen workers' rights and improve their welfare.
The Labour Commissioner, Mr Rashid Khamis Othman, noted that Zanzibar's Employment Act No. 11 of 2005 provides for the establishment of a Wage Board to advise the government on wage matters. The Wage Board's role is crucial in ensuring that wage decisions reflect the country's economic conditions and social needs. The recent wage increase is part of the government's efforts to enhance the livelihood of workers in the private sector.
The increase in the minimum wage is expected to have a positive impact on the living standards of private sector workers in Zanzibar. With the cost of living on the rise, this adjustment aims to provide workers with a better income to meet their needs. The government's decision also underscores its commitment to improving the welfare of workers across both the public and private sectors.
As the new rates take effect on January 1, 2027, both employers and employees will need to adapt to the changes. Employers must adjust their payroll systems and employment contracts, while employees will benefit from the increased wages. The government's directive for employment contracts for all workers by December is a significant step towards formalizing employment and protecting workers' rights.
Key points
- The Revolutionary Government of Zanzibar raises the minimum wage for private sector workers by 30%, effective January 1, 2027.
- Employers have been given three months to adjust their budgets and employment contracts according to the new rates.
- The Labour Commissioner has been directed to ensure every private sector employee has an employment contract by December 2026.
