The Tanzania government plans to come up with a law to check the number of foreign workers in the country.

The law will centralise issuing of work permits to foreigners, according to President Jakaya Kikwete, as opposed to the current situation where more than one institution is allowed to do so.

The Bill, to be known as Act for Foreigners’ Work Permits, will be tabled in Parliament under certificate of urgency in the October parliamentary session.

Kikwete told a public rally that the number of foreign workers in the country was alarming and that there was need for the government to take urgent measures to manage the issue.

“For some time now, people have been complaining that foreigners are employed in positions that Tanzanians can serve in, which is true,” he added.

“Since some institutions, which are responsible for issuing work permits, have not been loyal we intend to enact a law which will give the mandate to one institution.”

READ: Tanzania expels EAC immigrants, hikes fees

President Kikwete also disclosed that the government plans to set up a compensation fund for workers. Both public and private sector workers will be covered.

Under the arrangement, the government will contribute one per cent of the salaries of public employees every month while private sector employers will contribute 0.5 per cent of their employees’ salaries.

According to Mr Kikwete, some of employers have been unable to compensate employees injured at work because they simply cannot afford it. He promised that the government would improve salaries of public employees and reduce Pay as You Earn (PAYE) tax.

The minimum wage and PAYE rates will be announced when the Finance minister tables the 2014/2015 budget in Parliament.

Although donors and other development partners have been complaining that the government spends most of its budget on salaries, he said, the government would continue to improve salaries it offers its employees because they are poorly paid.