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Expand your global workforce in Uganda

Your guide to the employment landscape, working customs and local labor laws in

Capital

Kampala

Currency

Ugandan Shilling (UGX)

Languages

Swahili, English

GDP per Capita

$934.90

Employer Tax

10%

Payroll Frequency

Bi-weekly, Monthly

Talent overview

Uganda is a landlocked country in East Africa with an economic freedom score of 54.2 making it the 127th freest in the world. The country boasts a middle ranking of 24th among 47 countries in Sub-Saharan Africa. Uganda’s main economy relies on agriculture, making up 71.9% of its GDP. Only second to Ethiopia, coffee alone accounts for 17% of the country’s exports. 

Major economic hubs:

Kampala, Mbarara, Gulu

Skills in demand:

Agricultural Professionals, Management Professionals, ICT Professionals, Medical Professionals

Top local universities in Uganda

Uni1 30

Makerere University

RANKING

Local: 1

World : 1765

Uni2 26

Uganda Christian University

RANKING

Local: 2

World : 5764

Uni3 23

Kampala International University

RANKING

Local: 3

World : 7065

Uni4 24

Mbarara University of Science and Technology

RANKING

Local: 4

World : 7170

Uni5 Uganda

Kyambogo University

RANKING

Local: 5

World : 7649

Top Local Job Boards:

Brighter Monday, Ugandan Jobline, Uganda Job

Number of LinkedIn users:

961, 700

Top Recruitment Agencies:

Hodges Recruitment Agency

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

The table contains the average monthly salary in Uganda

No. Job Title Average Monthly Salary (in UGX) Average Monthly Salary (in USD)
1 Information Technology Manager 4,400,000.00 1,171.98
2 Network Engineer 2,360,000.00 628.61
3 Developer / Programmer 2,670,000.00 711.18
4 Project Manager 3,000,000.00 799.07
5 Database Administrator 2,570,000.00 684.54
6 Business Analyst 3,400,000.00 905.62
7 Business Development Manager 4,100,000.00 1,092.07

 

Employ in Uganda

Employing in Uganda

Hiring in Uganda requires you to be aware of the local employment laws, benefits, payroll, and taxes. Below is everything you need to know to successfully onboard talents from Uganda.

Employee Contract

Contracts in Uganda can either be written or oral. However, for the contract to be binding, employers should provide a written contract before starting employment. There is no mandatory language requirement for employment contracts in Uganda; however, the document must be understood by the employee.

Probation Period

The probationary period for new employees is up to 6 months.

Public and Provincial Holidays

Date Name Type
January 1 New Year National Holiday
January 26 Liberation Day National Holiday
February 16 Remembrance of Archbishop Janani Luwum National Holiday
March 8 International Women’s Day National Holiday
March 31 Eid al-Fitr National Holiday
April 18 Good Friday National Holiday
April 21 Easter Monday National Holiday
May 1 Labour Day National Holiday
June 3 Martyrs’ Day National Holiday
June 7 Eid al-Adha National Holiday
June 9 National Heroes Day National Holiday
October 9 Independence Day National Holiday
December 25 Christmas Day National Holiday
December 26 Boxing Day National Holiday

Employee Leaves

Type of leave Time period Mandatory
Annual leave/Earned Leave At least 21 days Yes
Maternity Leave 60 days Yes
Sick Leave 30 days Yes

 

Leave Compliance

Public and Provincial Holidays

Payroll in Uganda

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Payroll cycle

Workers are paid either monthly or bi-monthly.

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Minimum wage

The minimum wage in Uganda is UGX 130,000 per month.

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Overtime pay

Overtime pay in Uganda is usually 150% of the regular pay rate with holidays and weekends amounting to 200% of the regular pay rate. The hours spent working must not exceed 10 hours a day for at least 3 weeks or a total of 56 hours per week.

How taxes work

Employer Payroll Tax

Contribution Rate (%)
National Social Security fund 10

Employee Payroll Tax

Contribution Rate (%)
National Social Security fund* 5

Employee Income Tax

Annual Chargeable Income

(UGX, Ugandan Shillings)

Tax Rate (%)
0 to 2,820,000 (235,000 per month) 0%
2,820,000 (235,000 per month) to 4,020,000 (335,000 per month) 10% of the amount exceeding 2,820,000 (235,000 per month)
4,020,000 (335,000 per month) to 4,920,000 (410,000 per month) 120,000 + 20% of the amount exceeding 4,020,000 (335,000 per month)
Exceeding 4,920,000 (410,000 per month) 300,000 + 30% of the amount exceeding 4,920,000 (410,000 per month) + 10% of amount exceeding 120,000,000 (10,000,000 per month)

The income tax rates applicable to non-resident individuals are as follows:

Annual Chargeable Income

(UGX, Ugandan Shillings)

Tax Rate (%)
0 to 4,020,000 (335,000 per month) 10%
4,020,000 (335,000 per month) to  4,920,000 (410,000 per month) 402,000 + 20% of the amount  exceeding 4,020,000 (335,000 per month)
Exceeding 4,920,000 (410,000 per month) 582,000 + 30% of the amount exceeding 4,920,000 (410,000 per month) + 10% of the amount exceeding 120,000,000 (10,000,000 per month)

VAT

The standard VAT in Uganda is 18%.

Bonus

13th Month Pay

The 13th-month pay is customary in Uganda.

Employee Benefits

Full-time employees in Uganda are ensured to have insurance benefits such as

  • Employment Injury Benefits
  • Invalidity, Old age, and survivors’ benefits
  • Medical Care and Sickness Benefits
  • Unemployment Benefits

Employee offboarding

Employers must provide written notice for termination or pay in lieu of notice specifying valid reasons under the labor code of Uganda. An employee terminated unfairly is entitled to four weeks’ worth of wages.

Employees, on the other hand, may terminate the contract with or without notice provided that there is misconduct on the part of the employer and before the expiry of the notice of termination.

The notice period for probationary and regular employees ranges from 2 – 3 weeks.

The severance pay is under the provisions of the agreement between the employer and employee. However, employees are entitled to severance pay with at least 6 months of continuous service.

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Visa and
immigration

Apply for a business visa to Uganda requires you to submit the application form electronically (email) and will be studied by an Immigration Officer. Once approved, the document will be sent electronically (email), which can be printed or presented upon entering the country.

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