Employer Record in Uganda

Basic information

Capital: Kampala

Time zone: GMT+3

Languages: Swahili and English

Currency code: UGX

Human Resources at a Glance 

Contract Terms

Contracts must be in English. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Length of the employment
• Job description
• Termination conditions

Guidelines Regarding Probation Period/Trial Period

Probation periods are not mandatory. The maximum probation period is 6 months.

Regulations and Rules Regarding Working Hours

The standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday. Overtime payment is mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid 150% of their hourly rate.

Minimum Wage Requirements

The minimum wage is 6,000 Ugandan shillings per month.

Termination 

Grounds

Terminations in Uganda can be complex. There is no at-will termination in Uganda for employers and termination must be done for just cause. Compliant terminations include:

• 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

The minimum notice period is 2 weeks and will be increased according to the length of employment.

• Two weeks notice for service of more than six months but less than one year.
• One month notice for service of more than 12 months but less than five years.
• Two months notice for service of more than five years but less than ten years.
• Three months notice for service of 10 years or more.

Severance pay

In Uganda, all employees who are terminated because of the following are entitled to severance pay unless termination is due to gross misconduct or they have worked under 6 months.

• The employee is unfairly dismissed by the employer.
• The employee dies in the service of his or her employer unless death is due to an act occasioned by his or her of serious and willful misconduct.
• The employee terminates his or her contract because of physical incapacity not occasioned by his or her own serious and willful misconduct.
• The contract is terminated by reason of the death or insolvency of the employer.
• The contract is terminated by a labor officer following the inability or refusal of the employer to pay wages under section 31 of the Labour Act.
• Such other circumstances as the Minister may, by regulations, provide.

Severance pay is negotiated between the employee and the employer but the standard is 1 month for every year of service. In the absence of such a negotiated agreement, the determination may be done by a labor officer.

Payment & leave Compensation & Holidays 

SalaryPayment

Employers must pay their employees their remuneration promptly. Hourly and daily workers must receive their pay at the end of the current day or week, while those who are paid on a biweekly or monthly basis must be paid at the end of every fortnight or month.

Payslip 

Employers are required to provide itemized payslips in writing to all employees. These payslips should show the employee’s gross compensation and provide information about the amount and purpose of any deductions.

Annual Leave

Both full-time and part-time employees are entitled to 21 working days of paid time off (PTO) a year. PTO accrues at 7 days for every 4 consecutive months an employee works. Employees are eligible for PTO after 4 months of work.

Sick Leave

Employees are entitled to paid sick leave for up to 2 months per year. During the first month, the employee will receive their full salary from their employer. The second month is unpaid leave.

Maternity & Parental Leave

Pregnant employees are entitled to 60 working days of paid leave. 28 days must be taken after the child’s birth. The remaining days can be divided into two periods of time. The employee will receive 100% of their salary during this period, and the employer will be responsible for this pay.

The employee can extend leave an additional 4 weeks due to sickness at 100% pay.

In Uganda, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Tax and Social Security Information

Personal Income Tax

The individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Social security

Under the National Social Security Fund Act of Uganda, employers are required to make monthly contributions. The employer contributes 10% of the employee’s salary, while the employee contributes 5%. Both of these contributions are deducted from the employee’s paycheck at the time of payment. There are no minimum or maximum earnings used to calculate these contributions.

Public Holidays 2024