* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Kampala
Currency

Ugandan Shilling (USh)

Timezone

EAT (GMT +3)

Payroll
Monthly
Employment Cost

10.00%

Annual Leave

21 days

In-demand Specialties*
Software Engineering, Data Engineering, Online Teaching

The Ultimate Guide to Hiring Employees in Uganda

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Uganda-guide

Key Considerations Before Hiring In Uganda

Employing in Uganda requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Uganda with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Uganda quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Ugandan remote workers often offer competitive rates compared to their counterparts in Western countries, making it cost-effective to access skilled professionals.

Uganda has a young and educated workforce with diverse skills in areas such as IT, customer support, digital marketing, and more.

English is the official language in Uganda, and many Ugandans are proficient in English, simplifying communication and collaboration with international clients and teams.

Uganda's time zone is relatively favorable for businesses in Europe and parts of North America, allowing for real-time collaboration.

playroll-good-to-know

Fundamental Aspects of Employment in Uganda

Uganda's 1995 Constitution and the 2006 Employment Act define employee protections and workers' rights, ensuring equal pay for equal work and prohibiting discrimination based on age, religion, gender expression, and race. Common hiring process inquiries may include minimum wage, overtime rates, and guaranteed paid leave.

Probationary Period in Uganda

Probation periods are not mandatory but serve as an opportunity for employers to assess a new employee's performance and suitability for the position. The probation period can last up to six months, providing sufficient time for both parties to evaluate the employment relationship.

Working hours in Uganda

According to Ugandan labour laws, the standard working hours are eight hours per day and a total of 48 hours per week.

Overtime in Uganda

Employers can ask employees to work overtime, but the combined work hours, including overtime, should not surpass 10 hours per day or 56 hours per week, with exceptions for shift workers. Overtime is compensated at 150% of the regular rate on regular weekdays and at 200% of the regular rate on public holidays.

Navigating Key Aspects of Payroll in Uganda

Uganda has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 July - 30 June

Fiscal Year in Uganda

1 July - 30 June is the 12-month accounting period that businesses in Uganda use for financial and tax reporting purposes.
monthly

Payroll Cycle in Uganda

The payroll cycle in Uganda is usually monthly, with employees being paid at the end of the month.
31.25 UGX p/h

Minimum Wage in Uganda

The minimum wage for employees in Uganda is typically 31.25 UGX per hour, amounting to ~6,000 UGX per month for a typical 48 hour work week.

Minimum wages and salaries in Uganda

The minimum wage in Uganda stands at 6,000 Ugandan Shillings per month for unskilled workers and 130,000 Ugandan Shillings per month for skilled workers.

Bonus Payments in Uganda

In Uganda, there is no mandatory requirement for employers to provide bonuses or 13th month salaries. In fact, bonuses are not widely offered in Ugandan workplaces.

Comprehensive Overview of Employment Taxes in Uganda

Understanding the tax obligations for both employers and employees is crucial when operating in Uganda's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Uganda.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 10.00% on top of the employee salary in Uganda.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Uganda, the typical estimation for employee payroll contributions cost is around 5%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Uganda, the individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates.

Tax Rate Income Bracket

Pension in Uganda

The National Social Security Fund (NSSF) is Uganda's main source of public pensions, funded through contributions from both employers and employees. Employers are mandated to contribute 10% of their employees' salaries, while employees themselves contribute 5% of their earnings.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Uganda tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Uganda

When it comes to terminating employment in Uganda, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Terminations in Uganda are not straightforward. Unlike in some countries, employers in Uganda are not permitted to terminate employment at will. Instead, terminations must be justified by valid grounds.

  • Voluntarily by the employee
  • By mutual agreement
  • By the expiration of the contract
  • Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Performance due to unsuitability for the job

Notice Period

In Uganda, the minimum notice period for termination is 2 weeks, and it will increase according to the length of employment as follows:

  • 2 weeks notice for service of more than 6 months but less than 1 year.
  • 1 month notice for service of more than 12 months but less than 5 years.
  • 2 months notice for service of more than 5 years but less than 10 years.
  • 3 months notice for service of 10 years or more.

Severance Pay

Ugandan employment law outlines a broad spectrum of circumstances under which an employee is eligible for severance pay, including:

  • Unfair dismissal from work
  • Termination due to physical incapacity that wasn’t caused by an employee’s misconduct
  • Termination due to the death or insolvency of the employer
  • Termination by a labour officer, due to the inability or refusal of the employer to pay any wages due

Annual Leave Entitlements and Company Policies in Uganda

The annual leave entitlement in Uganda is 21 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Uganda

Public holidays in Uganda may vary each year, but some of the major and recurring public holidays typically observed in the country include:

Holiday Date

Paid Time Off in Uganda

Maternity Leave in Uganda

Paternity Leave in Uganda

Sick Leave in Uganda

Parental Leave In Uganda

Uganda's Benefits Built Into Playroll

Competitive benefits package in Uganda

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Uganda's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Uganda

Make your benefits package in Uganda a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Uganda

Playroll allows you to provide localized benefits for employees in Uganda within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Uganda create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Uganda

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Uganda.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!