Joseph Isangura
Tanzania’s formal job market is expanding, but new official data suggest that the benefits of this growth are being shared unevenly, with a widening gap between what public- and private-sector workers earn.
Findings from the latest Employment and Earnings Survey show that public-sector employees continue to enjoy significantly higher pay than their counterparts in private firms. On average, a public servant earns about Sh1.27 million per month, more than double the Sh549,373 earned by workers in the private sector. While overall average monthly cash earnings in formal employment stand at Sh609,354, this figure conceals sharp differences across sectors.
The disparity becomes clearer when wages are grouped into income bands. More than 60 per cent of public-sector employees on permanent contracts earn above Sh700,000 a month. In the private sector, fewer than a quarter of workers reach that level. Labour analysts say this imbalance reflects long-standing structural issues, including differences in job security, collective bargaining power, and productivity.
The data were compiled by the National Bureau of Statistics, Tanzania’s official agency responsible for labour and economic data, whose role is outlined on The survey underscores a central tension in the country’s development path: strong employment growth alongside persistent income inequality.
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These trends pose questions for Tanzania’s broader development ambitions. National strategies such as the Third Five Year Development Plan and the long-term Dira 2050 vision place inclusive growth and decent work at the heart of economic policy. Yet the latest figures suggest that many workers, especially in the private sector, are not seeing wages rise in line with economic expansion.
Despite lower pay levels, the private sector remains the backbone of formal employment, providing jobs to about 2.85 million people, compared with roughly 1.22 million in the public sector. This means the majority of formally employed Tanzanians are concentrated in lower-earning brackets, a pattern that could deepen inequality if left unaddressed. International institutions such as the World Bank have previously warned that uneven income growth can undermine poverty reduction gains.
Released in November 2025, the survey paints a picture of an economy that is creating opportunities, but where secure, well-paid jobs remain limited to a relatively small segment of the workforce. Economists argue that closing the wage gap will require boosting productivity in the private sector, investing in skills development, and improving labour standards.
The latest survey suggests that job creation alone is not enough; how income is distributed will matter just as much for the country’s long-term social and economic stability.
