ATE Chair urges government to lower skills levy to 2pc

17Dec 2018
By Guardian Reporter
Dar es Salaam
The Guardian
ATE Chair urges government to lower skills levy to 2pc

GOVERNMENT has been commended for lowering skills development levy (SDL) from 6 to 4.5 percent while requested to further lower it to 2 percent.

Gieta Gold Mine employees celebrate their Employer of The Year Award 2018 with Minister of State in Prime Minister's Office Policy, Parliament, Labour, Youth, Employment and Disability, Jenista Mhagama emerging overall winners. Photo: Guardian Photographer.

Association of Tanzania Employers (ATE)’s Chairperson, Jayne Nyimbo-Taylor thanked the government for its efforts in improving the country’s business environment by taking measures such as reducing the SDL.

Taylor said employers are currently facing various challenges such as bureaucracy in the processing of work permits and Workers' Compensation Fund contributions which requires private sector employers to pay 1 percent while public employers pay only 0.5 percent of wages paid.

“But we also have an issue of employment contracts restrictions under the country’s labour laws as well as penalties and fines imposed by the Occupational Safety and Health Administration (OSHA),” Taylor lamented.

Speaking at the same event, ATE Managing Director, Dr Aggrey Mlimuka expressed his gratitude to the government for the continued supported rendered to private employers.

"We will continue working with TUCTA and the government as we continue to move our country towards a mid-size economy by 2025. I want to use this opportunity to also thank and congratulate all ATE members, nominees and winners for participating in this exercise by providing us the opportunity compare the performance of their companies and institutions,” Dr Mlimuka said.

Addressing the Employer of the Year attendees, Minister of State Office in Prime Minister's Office responsible for Policy, Parliament, Labour, Youth, Employment and Disabled, Jenista Mhagama commended ATE for organising the awards.

Mhagama said it is vital in encouraging businesses like small and medium size enterprises as well as large enterprises to realise the importance of quality human resource management as a vital element of doing business in the country.

“The government recognizes the contribution of employers from both the public and private sectors, trade unions and the general public and that it will continue to support their efforts towards the nation’s endeavour to become a mid-size economy propelled by industrialization,” Mhagama.

The EYA Awards which in 2017 saw the introduction of 12 new categories namely Employee Wellness, Attraction and Retention, Industrial Relations, Work Life Balance, Employer Branding, Managing an Ageing Workforce, Technology Investment, Private Sector Award, Public Sector Award, Civil Society Award and Indigenous Employer Award.

In addition, Mhagama recognized efforts by ATE for various activities including Female Future Programme which is a collaboration the Norwegian Confederation of Trade Unions aimed developing women’s leadership skills hence ultimately positioning women as competent contenders for senior management positions in various companies and institutions.

The programme’s success can be witnessed through the 66 women that have graduated from the programme since its founding in 2016.

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