NSSF (National Social Security Fund) is Tanzania's mandatory pension scheme. Every formally employed person โ and every employer โ must contribute monthly. The statutory rate is 10% from the employee + 10% from the employer, totalling 20% of gross monthly emoluments. The Tawala NSSF Calculator shows both shares instantly.
Unlike PAYE, NSSF is paid on gross โ there's no income threshold, no exemption, no bracket. If you're on a payroll in Tanzania, you contribute. The deadline is also the 7th of the following month via the NSSF online portal.
How NSSF is calculated (2026)
NSSF is the simplest of the Tanzanian statutory deductions: a flat percentage of gross. There is no cap and no floor.
| Party | Rate | Base |
|---|
| Employee | 10% | Gross monthly salary |
| Employer | 10% | Gross monthly salary |
| Total | 20% | โ |
Source: NSSF Act, Cap 50 โ Section 17.
Worked example
For an employee earning TZS 1,200,000 gross monthly:
- Employee NSSF: 1,200,000 ร 10% = 120,000 (deducted from salary)
- Employer NSSF: 1,200,000 ร 10% = 120,000 (paid by employer on top)
- Total monthly NSSF remitted: 240,000
The full 240,000 is credited to the employee's NSSF account and accrues toward retirement, invalidity and survivor benefits.
What NSSF benefits do you actually get?
- Old-age pension โ payable from age 60 (or 55 voluntary) after 180+ contribution months.
- Invalidity benefit โ for permanent disability before retirement age.
- Survivor benefit โ to dependants if the contributor dies.
- Maternity benefit โ 100% of insurable earnings for 84 days, paid from week 4 of post-natal leave.
- Funeral grant โ fixed lump sum to next of kin.
- Health insurance โ separately, NHIF (3% + 3%) covers medical care; NSSF does not.
Common NSSF mistakes
- Calculating on net instead of gross. NSSF is on gross โ before any deductions, including PAYE.
- Forgetting the employer share. The 10% employer match is a separate cash outflow, not deducted from the employee.
- Late filing. The portal deadline is the 7th of the following month. Late returns attract a 5% surcharge plus 1% per month interest.
- Mis-classing contractors. True independent contractors don't contribute to NSSF โ but TRA and NSSF aggressively reclassify "contractors" who behave like employees.
