The United Republic of Tanzania

National Social Security Fund (NSSF)

We Build Your Future


Old Age Pension

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

Qualifying Conditions

Retirement Pension shall be payable to an insured person who

  • Has attained pensionable age.
  • In respect of whom not less than 180 monthly contributions
  • have been paid and
  • Who has attained the age of 55 or above but before attaining
  • pensionable age.

The ILO Social Security Convention No. 102 of 1952 ( Minimum standards Convention) stipulate special concession for older members of the “Provident Fund” [NPF] who had less than 15 years to retirement age at the commencement of the scheme i.e. on 1.7.1998 to obtain pension benefits for shorter qualifying periods; the persons referred to as “Late Age Entrants”

Benefit payable

  • Commuted pension (Initial Lump sum) paid immediately before starting pension which is equal to 25% of calculated annual pension times 12.5
  • Old age special lump sum for non qualifying members i.e total contributions plus interest
  • Minimum Pension is 40% of the lowest Sartorial Statutory Minimum Wage
  • Maximum Pension is 72.5% of the Annual Pensionable Emoluments.

Old Age/ Retirement Pension Formula

The Qualifying member shall be entitled for payment of both Commuted

Pension (Lump sum) and Monthly Pension

(i) Commuted Pension (Initial Lump sum)

CP = (1/580*N*APE) *12.5*25%


  • CP = Commuted Pension
  • 1/580 = Replacement Rate
  • N = Number of contributions credits
  • APE = Annual Pensionable Emoluments - (APE shall be an Average of the highest three years earnings out of last 10 years preceding his retirement)
  • 12.5 = Estimated pension period (Average life expectance after retirement)
  • 25% = Percentage of pension paid as lump sum

(ii) Monthly retirement pension

Monthly Pension = (1/580 * N*APE)*75%*1/12


  • 1/580 = Replacement Rate
  • N = Number of contributions credits
  • APE = Annual Pensionable Emoluments
  • 75% = this is the percentage of annual pension after paying 25% commuted pension (Initial Lump sum)

Conversion formula

Members who joined the scheme before July 1998, their provident accumulated contribution balances were converted into pension credits by using the following formula: -

n = 1.5 x B



n = Number Insured Person’s Pension Credits as at 30th June 1998

B = Member’s NPF balance as at 30th June 1998

C = Last contribution made to the Fund before July 1998

1.5 = Conversion Factor which is constant.

This conversion formula was aimed at achieving the following objectives: -

  • To obtain pension credits for founder member of NSSF
  • To adjust the variation of contributions rates
  • Takes care of the effects of inflation by applying the 1.5 factor

Where the result obtained from the conversion formula above is greater than 108 (i.e. if n > 108), meaning that some contributions fall in the 10% contribution period; the result is adjusted by applying 108 factors as follows:-

N = 108 + (n – 108)



N = New number of credits as at 30th June 1998

n = Number of credits using the Conversion Formula above.

108 = Total monthly contributions from July 1989 – June 1998