The United Republic of Tanzania

National Social Security Fund (NSSF)

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Old Age Pension

The main objective of the Retirement Pension is to guarantee income security to elderly members by providing periodic payments.

Qualifying Conditions

  • Attainment of compulsory pensionable age of 60 or early retirement at 55 – 59 years.
  • Must have made at least 180 monthly contributions to the Fund. The ILO Social Security convention No 102 of 1952 (Minimum Standards Convention) stipulates a maximum qualifying period of 30 years of contributions. However, under the NSSF the qualifying period has been set at 15 years or 180 months.
  • The ILO convention sets transitional provisions to persons termed “late age entrants” to receive basic pension for shorter qualifying periods as indicated

Old Age / Retirement Pension Formula

(i) Commuted Pension (Initial Lump Sum)

formula = (1/580 x N x APE) x 12.5 x 25%


  1. 1/580 = Accrual Factor per Month
  2. N = Number of Contribution months (credits)
  3. APE = Annual Pensionable Emoluments (Average annual salary of the best three years out of last 10 years).
  4. Commutation factor = 12.5
  5. Commutation rate = 25%

(ii) Monthly Pension

formula = (1/580 x N x APE) x 75% x 1/12

Benefits Payable

Monthly pensions for qualifying members

  • Initial Lump sum paid immediately before starting pension which is equal to 25% of the calculated annual pension times 12.5
  • Old age special Lump sum for non qualifying members i.e. the average of the 60 months contribution times the number of credits.
  • Minimum Pension is 40% of the lowest Sectoral Statutory Minimum Wage.
  • Maximum Pension is 72.5% of the Annual Pensionable Emoluments.

Purpose of the Conversion formula

  • To obtain pension credits for founder members of NSSF
  • To adjust the variations of contribution rates
  • Takes care of the effects of inflation by applying the 1.5 factor