Back

Payroll and Benefits Guide Uganda

Last updated: Jun 28, 2023

Currency
Ugandan Shilling (UGX)
Employer Taxes
10%
Payroll Frequency
Bi-weekly/Monthly
Employee Costs
5%
Capital
Kampala
Date Format
dd/mm/yyyy
Fiscal Year
July 1-June 30
video poster

Contribution

Employer
Employer Payroll Contributions
10%
National Social Security Fund (NSSF)
10%
Total Employment Cost
Employee
Employee Payroll Contributions
5%
National Social Security Fund (NSSF)
5%
Total Employee Cost
Employee Income Tax
Residents:
0%
0-235,000UGX per month
10%
235,001-335,000UGX per month
20%
335,001-410,000UGX per month
30%
410,001- 1,000,000UGX
40%
1,000,000UGX and above
Non-Residents
10%
0-335,000UGX per month
20%
335,001-410,000UGX per month
30%
410,001- 1,000,000UGX
40%
1,000,000UGX and above

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Payroll

Payroll Cycle

Payroll frequency is biweekly or monthly, paid at the end of every fortnight or month. Hourly and daily workers must receive their pay at the end of the current day or week.

 

Working Hours

General

The standard workweek is 8 hours per day or 48 hours a week.

Overtime

When an employee works in excess of the standard workweek without a written agreement, the employee should be remunerated at the minimum rate of one and a half times of the normal hourly rate if the overtime is on the normal working days, and at two times the hourly rate where the overtime is worked on gazetted public holidays.

Leave

Annual Leave (vacation)

Employees are entitled to a minimum of 21 working days of paid annual leave, accruing at a rate of seven days for each continuous period of four months of service. Employees may not relinquish their right to annual leave in exchange for monetary compensation. Failure to apply for leave within a certain year implies forfeiture of the employee’s right to leave, the alternative option is for the employer to defer the employee’s leave to another year. The maximum carry over of unused leave is one year. Leave is granted when the employee applies for it, an employer may not force an employee to go on leave.

In the event of termination, an employee is entitled to compensation for any unused annual leave.

Public Holidays

Public holidays that fall on the weekend are usually lost. Some religious holidays are determined by the lunar cycle and will show as ‘Tentative’ until they are confirmed nearer the date of the holiday.

Date Day Holiday Notes
1 Jan 2024 Monday New Year
26 Jan 2024 Friday Liberation Day
16 Feb 2024 Friday Remembrance of Archbishop Janani Luwum
8 Mar 2024 Friday International Women’s Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
10 Apr 2024 Wednesday Eid al-Fitr (Tentative Date) Tentative
1 May 2024 Wednesday Labour Day
3 Jun 2024 Monday Martyr’s Day
9 Jun 2024 Sunday National Heroes Day
17 Jun 2024 Monday Eid al-Adha (Tentative Date) Tentative
9 Oct 2024 Wednesday Independence Day
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day

Sick Leave

If an employee is unable to work due to illness, they can take up to 2 months of sick leave per year. The first month of absence is paid by the employer at full pay and benefits. The second month of absence is unpaid. If an employee is still unable to work due to sickness at the end of the second month, the employer may terminate their employment.

Leave entitlement applies to employees who work at least 16 hours per week and have completed at least one month of continuous service.

Employees must promptly notify their employer of their absence and provide a written certificate from a qualified medical practitioner.

Maternity Leave

Female employees are entitled to 60 working days of paid maternity leave. They must provide at least seven days’ written notice before beginning their leave and returning to work afterward. Maternity leave can be extended by 20 additional workdays in exceptional circumstances, such as illness related to the pregnancy or childbirth.

Paternity Leave

Male employees are entitled to four paid days of paternity leave per year following the birth of a child or their wife’s miscarriage.

Other Leave

Employees are entitled to three paid days of compassionate leave on a single occasion and a maximum of six paid days in a given calendar year due to the death of a family member or dependent relative.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Employers cannot terminate employees at will in Uganda and must have legitimate grounds for termination. Prior to termination, a fair hearing/consultation procedure should be followed, with the reasons for termination being explained.

Employers who terminate unfairly must compensate the affected employee with a basic compensation order for four weeks’ salary. If an employee is served a notice of termination by the employer, he or she may terminate the contract of employment before the end of the notice period without having to compensate the employer for the remainder of the notice period.

Notice Period

The required notice period depends on the employee’s length of service as follows:

  • Less than six months of service: no notice required
  • More than six months but less than one year service: two weeks notice
  • More than 12 months but less than five years service: one month notice
  • More than five years but less than 10 years: two months notice
  • 10 years or more service: three months service

The employer can choose to Pay in Lieu of Notice.

Severance Pay

Employers are required to provide severance pay in the following circumstances:

  • Cases of unfair dismissal
  • If an employment contract is terminated due to the employer’s insolvency or death
  • If the employee dies while in the employ of the employer
  • If the employee terminates the contract due to physical incapacity

To qualify for severance pay, the affected employee must have completed a minimum of six months of continuous service. The amount of severance pay is negotiated between the employer and the employee or the labor union representing the employee.

Probation Period

The maximum probation period should be 6 months. An extension to the probation period might be possible with the workers consent. An employee may not be placed on probation twice by the same employer.

During the probation period, either the employee or employer can terminate the employment contract by giving 14 days’ notice or by the employer paying seven days’ wages in lieu of notice.

 

Common Benefits

Employers in Uganda frequently offer employment insurance and health insurance as supplemental employee benefits. These types of insurance policies are handled by private service providers.

VISA

Foreign nationals planning to work in Uganda, whether for paid employment or as volunteers, are required to obtain a work permit. It’s crucial for them to choose the appropriate type of work permit before commencing the application process. The following are the common types of work permits for paid employment in Uganda:

  • Class A and A2: For government employees, diplomats and government contractors
  • Class B: For foreign nationals who intend to invest in the agricultural industry
  • Class C: For foreign nationals who intend to invest in the mining industry
  • Class D: For foreign nationals who intend to engage in business or commerce in Uganda
  • Class E: For manufacturers who plan to invest in or establish a manufacturing business in Uganda
  • Class F: For working professionals who intend to practice their profession in Uganda

The duration of work permits in Uganda varies from six months to 36 months.

Stay up to date on payroll & employment law changes

Questions & Answers

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws

The information provided in the Papaya Global Web site is provided for informational purposes only. The materials are general in nature; they are not offered as advice on a particular matter and should not be relied on as such. Use of this Web site does not constitute a legal contract or consulting relationship between Papaya Global and any person or entity. Although every reasonable effort is made to present current and accurate information, Papaya Global makes no guarantees of any kind. Papaya Global reserves the right to change the content of this site at any time without prior notice. Papaya Global is not responsible for any third party material that can be accessed through this Web site. The materials contained on this Web site are the copyrighted property of Papaya Global unless a separate copyright notice is placed on the material. Papaya Global grants each user a non-exclusive, non-transferable license to access and download, display and print one copy of the content of this Web site on a single computer solely for internal, business use, provided that the user does not modify the site content in any way and that all copyright and other notices displayed on the site content are retained. Other reproduction, distribution, republication and re-transmission of materials contained within this Web site require Papaya Global’s prior permission.
All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Uganda
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year
26 Jan 2024 Friday Liberation Day
16 Feb 2024 Friday Remembrance of Archbishop Janani Luwum
8 Mar 2024 Friday International Women’s Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
10 Apr 2024 Wednesday Eid al-Fitr (Tentative Date) Tentative
1 May 2024 Wednesday Labour Day
3 Jun 2024 Monday Martyr’s Day
9 Jun 2024 Sunday National Heroes Day
17 Jun 2024 Monday Eid al-Adha (Tentative Date) Tentative
9 Oct 2024 Wednesday Independence Day
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day