Workers Compensation Fund

Workers Compensation Fund (WCF) is a social security scheme established in accordance with Section 5 of the Workers Compensation Act [Cap 263 Revised Edition of 2015].
The main purpose for the establishment of the Fund is to provide for adequate and equitable compensation for employees who suffer occupational injuries or contract occupational diseases arising out of and in the course of their employment and in case of death, for their dependants.
The objectives of the Fund are:
a)Provision of adequate and equitable compensation to employees
b)Implementation of the National Social Security Policy of 2003 which requires having a system in place to cover contingencies for work-related injuries, diseases and deaths
c)Implementation of provision of Section 5 of the Workers Compensation Act [Cap 263 Revised Edition of 2015]
d)Provision of a framework for effective, prompt and empathetic consideration, settlement and payment of compensation benefits
e)Provision of a framework for control and administration of contributions to and payments from the Fund
f)Promotion of prevention of accidents and occupational diseases
g)Provision of rehabilitation services
h)Compliance with international obligations with respect to workers compensation
The functions of the Fund are:
a)Registration of all employers in Mainland Tanzania
b)Assessment of risk exposure at work places and tariffs determination
c)Collection of contributions from employers
d)Investment of available funds
e)Payment of compensation to employees
f)Maintenance of statistics for all occupational accidents, diseases and deaths
g)Promotion of prevention of occupational accidents, diseases and deaths
h)Public education and awareness programs.

Health Insurance Schemes

Health Insurance Scheme provides coverage for medical/health care services. With focus to ensure quality health care services to employees in the public, private, other groups, is available, accessible and affordable to members and their respective legal dependents, the National Health Insurance Fund as was established as a Public institution under the Act No.8 of 1999 [CAP 395 As Amended]

According to the NHIF Act, employers and employees in the public sector are obliged to register themselves and contribute to the Fund a total of six per centum of each employee’s monthly basic salary which is equally shared between employer and employee. The Fund has put in place a separate contribution arrangement for other special groups such as students, clergy, associations and private individuals registered by the Fund.

Community Health Fund

Community Health Fund (CHF) is a voluntary scheme established by the Act No. 1 of 2001. CHF is a pre-payment council based scheme aimed at facilitating the community to access health care at an affordable premium that is determined by the community itself.

Currently, a total of 164 CHFs have been registered by the authority.

Pension Schemes

Social security is aimed at enabling people to live a respectable life where they can meet their basic needs even in the event of social and economic disasters that lead to reduction or cessation of income. Such disasters could be death or disability. Social protection also addresses reduced income that may result from old age, maternity or sickness.

It is therefore, social security a right to everyone. This right is contained in the constitution of the United Republic of Tanzania article 11(1) and the National Social Security Policy of 2003. This right is also classified in the Universal Declaration Human Rights of 1948 and International Labor Organization (ILO) charters.

Social Security System

In Tanzania, the Social Security system is divided into (3) three tiers/pillars;

Tier One – Social Assistance Schemes 

This constitutes provision of services such as primary health; primary education, water, food security and other services on a means tested basis. These services are usually financed by the government and Non-Governmental Organizations (NGOs).

Tier Two – Mandatory Schemes 

These are usually compulsory and contributory schemes financed by both employer and employee during the working life for terminal and short-term benefits.

Tier Three – Voluntary or Supplementary Schemes    

The schemes under this tier include personal savings, co-operative and credit societies, occupational pensions schemes and private schemes; managed by employers, professional bodies, community based organizations and other private sector actors


Pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement. In the mainland Tanzania, there are two mandatory Social Security Schemes that are all regulated by SSRA. They include;

  • National Social Security Fund (NSSF)
  • Public Service Social Security Fund (PSSSF)

Importance of Social Security (Pension Funds):

  • Extends Social Security coverage
  • Reduces poverty among Tanzanians
  • Increases protection for Tanzanians in aspects such as education, health, maternity, disability and old age.
  • Boosts economy through investments and opportunities for entrepreneurs through various social groups
  • Contributes to the development of various projects of the Government
  • Increases employment to Tanzanians through projects facilitated by Pension Funds

Benefits offered by Social Security Schemes:

There are two kinds of benefits offered by the pension Schemes. These are short term benefits and long term benefits:

  • Long term benefits
  1. Old age (Pension) 
  2. Invalidity 
  3. Survivors’ 
  • Short term benefits
  1. Medical care 
  2. Employment injury
  3. Maternity
  4. Death/Funeral benefit
  5. Education

Involvement of  Informal sector in Social Security Sector:

Tanzania, like many other countries in the developing world has had strong informal and traditional social security systems built on family and/or community support.

Informal sector has been involved in social security system through joining Supplementary schemes offered by social security schemes.

Supplementary Schemes

What are Supplementary Schemes?

A supplementary scheme means a voluntary scheme chosen by the member to compliment benefits of any mandatory scheme. The main aim of Supplementary Schemes are to cater for more different benefits, where people voluntarily save for retirement, working capital and insure themselves against events such as disability and loss of income and meet other social needs.

Section 31 of the Social Security (Regulatory Authority) Act, Cap 135 [As Amended] provides that “any person may, subject to the terms and conditions prescribed in the Regulations, establish a supplementary scheme whose membership shall be voluntary.”

The following supplementary schemes have been registered by the Authority;

  1. Puma Energy Tanzania Provident Fund
  2. Voluntary Savaings Retirement Scheme
  3. MSD Wekeza Supplementary Scheme
  4. PSPF Supplementary Scheme
  5. ELCT Retirement Scheme
  6. Wote Scheme
  7. PPF Supplementary Scheme
  8. BOT Staff Benefits Scheme
  9. TANAPA Group Endowment Fund
  10. LAPF DC Scheme
  11. Tanzania Portland Cement Company Limited Staff Pension Scheme
  12. Deposit Administration Scheme


Who is an Administrator?

Administrator means a person appointed by trustees to administer a scheme in accordance with the terms and conditions of service specified in the instrument of appointment.

Roles of administrator;

  • To carry out daily administration of the affairs of the scheme in accordance with the terms and conditions of service specified in the instrument of appointment.
  • To offer advisory and training services to the trustees, members on their rights and obligations in the scheme;
  • To submit or cause to be submitted required statutory returns to the Authority;
  • To compute and pay benefits to the members and their beneficiaries directly as provided for in the law and the scheme rules;

Currently, Registered Administrators include;

  • PPF Pension Fund
  • Jubilee Life Insurance Corporation of Tanzania Ltd
  • GEPF Retirement Benefits Fund


Custodian means a company registered under the law of Tanzania responsible for safeguarding a firm’s or individual’s financial assets. In other words, a Custodian is always a banking institution where people securely put their assets.

Basically, among the roles of a Custodian is;

  • Safekeeping assets/securities,
  • Arrange settlement of any purchases, sales and deliveries in, or out of such securities and currency,
  • Collect income from such assets,
  • Provide information on the securities,
  • Maintain currency/cash bank accounts, effect deposits and withdrawals and manage other cash transactions,
  • Provide accurate and timely periodic reports to the trustees and the Authority on holdings and transactions,
  • Perform foreign exchange transactions where required and provide regular reporting on all their activities to their client (schemes).

Currently, registered custodians include;

  1. CRDB Bank Plc
  2.  Stanbic Bank Ltd
  3. Standard Chartered Bank Ltd
  4. Bank M (T) Ltd
  5. African Banking Corporation Tanzania Ltd
  6. KCB Bank (T) Ltd
  7. Azania Bank Ltd
  8. NMB Bank Plc

Fund Managers

Fund Managers are responsible for managing and implementing investing strategy and managing portfolios of trading activities. They would normally advise the trustees on available investment vehicles and expected risk and returns for each vehicle.

In general, functions of Fund Managers are:

  • To oversee the acquisition, sale and investment of securities and other financial instruments for a particular scheme,
  • Upgrade and maintain assets, such as stocks, bonds and real estate, so that the Schemes and its investors make a profit,
  • Issuing instructions on behalf of trustees to custodians to effect payments,
  • Submitting quarterly investment schedules / reports

Currently, Fund Managers registered by the Authority include;

  1. Core Securities Ltd
  2. Zan Security Ltd
  3. African Life Assurance (T) Ltd
  4. TSL Investment Management Ltd
  5. Orbit Securities Co Ltd
  6. Optma Corporate Finance Ltd
  7. M Investment Partners Ltd
  8. Arch Financial & Investment Advisory Ltd
  9. Vertex International Securities Ltd
  10. A Capital Ltd
  11. UTT- AMIS Public Company Ltd
  12. Cornerstone Partners Ltd
  13. Solomon Stockbrokers Ltd
  14. Watumishi Housing Company Ltd
  15. Fimco Ltd
Tovuti Muhimu