Tanzania vs Somalia

In Tanzania, the minimum wage is TZS1,010/hr ($0.38 USD). In Somalia, it is no statutory minimum wage.

The average gross salary in Tanzania is TZS650,000/mo ($244.36 USD), compared to Sh150,000/mo ($262.70 USD) in Somalia. In USD terms, workers in Tanzania earn approximately 8% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Tanzania and Somalia is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Somalia earn more in nominal terms, though how far that income stretches depends on local prices in Tanzania.

Somalia has a longer standard work week at 48 hours, compared to 45 hours in Tanzania. Workers in Tanzania work 45 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Tanzania working fewer hours may have comparable or better effective hourly earnings depending on the wage levels of each country. Total annual compensation depends on both the wage rate and the number of hours required.

While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. Tanzania has the higher GDP per capita at $4,221, which is 2.6x that of Somalia at $1,602. From Tanzania's perspective, this means goods and services are priced at a higher economic level. A higher GDP per capita generally correlates with higher wages, higher consumer prices, and greater availability of goods and services. Workers moving between these two countries should expect significant differences in rent, food, and transportation costs.