What is WCF (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] and applies to all employers and employees in Mainland Tanzania. 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 for the establishment of Fund are:

The WCF’s goals are to:

Provision of adequate and equitable compensation to employees who will sustain occupational injuries, diseases out of or in the course of their employment, in case of death for their dependants
Implementation of the National Social Security Policy of 2003
Implementation of provision of Section 5 of the Workers Compensation Act [Cap 263 Revised Edition of 2015]
Provision of rehabilitation services
Provision of a framework for effective, prompt and empathetic consideration, settlement and payment of compensation benefits to employees and their dependants
Provision of a framework for effective administration of contributions and payments from the Fund
Compliance with international obligations with respect to workers’ compensation
Promotion of prevention of accidents and occupational diseases.

The functions of the fund are:

Registration of all employers
Assessment of risk exposure at work places for tariffs determination
Collection of contributions from employers
Investment of surplus monies of the Fund
Payment of compensation to employees
Maintenance of statistics for all occupational accidents, diseases and deaths
Promotion of prevention of occupational accidents, diseases and deaths
Public education and awareness programs

Contributions

All employers in the formal sector from public and private in Mainland Tanzania are required to contribute to the Fund, where by employers in the private sectors contributes 0.5% while employers in the public sector contributes 0.5% of the employees’ earnings.

PRIVATE SECTOR TO CONTRIBUTE 0.6 PERCENT INSTEAD OF 1 PERCENT FROM 01ST JULY 2021

The government through the Workers Compensation Fund (WCF) has reduced the contribution rate whereby from July 2021 employers from the private sector will contribute 0.6 percent of their employees’ salaries from the previous 1 percent.

The following are the key issues to be considered:

Employers can pay contribution through electronic means (portal.wcf.go.tz) after generating a control number;
Contribution for related month shall be paid within that particular month or before end of the following month;
The contributions are paid by employers and employers are prohibited from deducting their employees’ ernings;
Employees earnings includes basic salary and other fixed allowances;
Employer who does not remit contributions on time will, in addition to the contributions required, pay two per centum (2%) of the amount unpaid as interest for the delayed contribution in line with Section 75 (2) of the Workers Compensation Act [Cap.263] read together with Regulation 13 (7) of the Workers Compensation Regulations, 2016 and Regulation 13 (7) of the Workers Compensation (Amendment) Regulations, 2021
The rate of contributions applicable in the specific financial year will be published before its application.

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Registration

All Employers in Mainland Tanzania are required to register with the Fund. Any employer who existed before 1st July 2015 is required to register with the Fund by 1st July 2015, those who existed after 1st July 2015 are required to register with the Fund within thirty (30) days from recruiting their first employee.

An employer can register online with the Fund through portal.wcf.go.tz or by duly filling registration Form WCR-1 and WCR-2 and submitting them to the nearby Fund’s office or Labour office.

When should it be paid?

The monthly contribution will be submitted within the relevant month or the following month (for example the July contributions will be submitted within July or August but not later than 30 August). Head of Fund.

How does the fund help employees?

The objectives for the establishment of Fund are:

Compensation is payment or service provided to an employee who has suffered occupational accident or contracted occupational diseases arising out of and in the course of his employment and in case of death, for his dependants.

Benefit payment considers all occupational accident, diseases and deaths that occurred from 1^st July 2016. However, all claims are required to be submitted with twelve (12) months from the date of incidence.

The benefits are paid in two forms that is lumpsum and monthly pension depending on type of disablement, percentage of disablement and level of dependency.

Claims for compensation involving all accident, diseased or death that occurred before 01^st July 2016 are handled under The Workers’ Compensation Act of 1949 and Public Service Act No. 8 of 2002.

The objectives for the establishment of Fund are:

Medical Aid
Temporary Disablement
Permanent Disablement
Constant Attendance Care Grants
Rehabilitation
Funeral Grants
Compensation to dependants of the deceased employees

BENEFICIARIES OF THE BENEFITS:

Employees who sustain injuries or contract diseases arising out of and in course of employment.
Dependants of the deceased employee, in case an employee dies as a result of occupational accident or disease.

CRITERIA FOR THE CONSIDERATION OF COMPENSATION

Whether the accident, occupation disease or death occurred in the actual discharges of the employee’s duties
Whether the employee sustained injuries or died as a result of an accident or occupational diseases
Whether there is no serious willful misconduct on the part of the employee
Past due employees’ contribution was remitted
Relevant documents relating to the incident have been submitted