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Workforce Guide in Uganda
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Minimum Wage
In Uganda, the minimum wage stands at 6000 Ugandan shillings per month for all employees, a figure that has not been revised since January 1, 1884. The year 2015 saw the introduction of a fresh Minimum wage in parliament, sparking debate and discussion.
Payroll Cycle
Salaries are paid monthly, which is the most prevalent payroll plan in Uganda. However, some companies pay their staff weekly, bimonthly, or semi-monthly.
Monthly payments are the most common practice for payroll in Uganda. However, some companies offer employees the option to receive their salaries weekly, bi-monthly, or semi-monthly. This flexibility caters to diverse preferences and can be beneficial for both employers and employees.
Taxation
The resident individual tax rates are outlined in the following table. These rates apply to employment income and taxable business income.
|
Annual Taxable Income Exceeding (UGX) |
Annual Taxable Income Not Exceeding (UGX) |
Tax on Lower Amount (UGX) |
Rate on Excess (%) |
|---|---|---|---|
|
0 |
2,820,000 |
0 |
0 |
|
2,820,000 |
4,020,000 |
0 |
10 |
|
4,020,000 |
4,920,000 |
120,000 |
20 |
|
4,920,000 |
120,000,000 |
300,000 |
30 |
|
120,000,000 |
- |
34,824,000 |
40 |
Non-residents are subjected to taxes on their taxable income in Uganda, including investment income, at the following rates:
|
Annual Taxable Income Exceeding (UGX) |
Annual Taxable Income Not Exceeding (UGX) |
Tax on Lower Amount (UGX) |
Rate on Excess (%) |
|---|---|---|---|
|
0 |
4,020,000 |
0 |
10 |
|
4,020,000 |
4,920,000 |
402,000 |
20 |
|
4,920,000 |
120,000,000 |
582,000 |
30 |
|
120,000,000 |
- |
35,106,000 |
40 |
Annual Leave
Each worker in Uganda is entitled to 21 days of annual leave per year, with full pay. The employee, subject to agreement with the employer, can choose the timing of this leave. It’s important to note that the 21 days only include work days, so if an employee doesn’t normally work on Saturdays and Sundays, those days should not be counted as their annual leave..
Sick Leave
An employee in Uganda who has completed at least one month of service is entitled to two months of sick leave, with the first month fully paid and the second month unpaid. However, it is crucial to note that employers may then have the right to terminate the employment contract after two months, based on the terms outlined in the existing contract.
Maternity Leave
In Uganda, female employees with a valid contact are eligible for up to 60 days of fully paid maternity leave. The law does not specify a minimum service requirement for this benefit. Additionally, employees experiencing miscarriage are entitled to at least 4 weeks of paid leave.
Paternity Leave
In Uganda, male employees are eligible for up to four days of fully paid paternity leave, but only when the birth involves their official spouse.
1 January
New Year's Day
26 January
NRM Liberation Day
16 February
Archbishop Janani Luwum Memorial Day
8 March
International Women's Day
29 March
Good Friday
1 April
Easter Monday
1 May
Labour Day
25 December
Christmas Day
10 May
Census Day
10 26 December
Boxing Day
3 June
Martyr's Day
9 June
National Heroes Day
17 June
Eid al-Adha
Termination of employment contracts in Uganda requires written notification that adheres to the established timeframe outlined in the individual employment agreement.
Notice Period
The length of the notice period is determined by the following factors:
The length of the termination notice period depends on the employee’s length of service:
*6 months to 1 year: Two weeks’ notice required.
*1 year to 5 years: At least a month’s notice required.
*5 years to 10 years: Three months’ notice required.
*Over 10 years: Three months’ notice required.
Severance Pay
Upon termination, including wrongful dismissal, employees with at least six months of service are entitled to severance pay in Uganda. The law mandates negotiation between the employer and employee to determine the amount. If no agreement is reached, a labor officer may intervene and make a binding decision regarding the severance pay.