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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
1 Jan New Year Public Holiday
26 Jan Liberation Day Public Holiday
8 Feb Prešeren Day National holiday
16 Feb Remembrance of Archbishop Janani Luwum Public Holiday
8 Mar International Women’s Day Public Holiday
8 Apr Funeral of Jacob Oulanyah Public Holiday
15 Apr Good Friday Public Holiday
17 Apr Easter Sunday Observance
18 Apr Easter Monday Public Holiday
27 April Day of Uprising Against Occupation National holiday
1 May Labour Day Public Holiday
2 May Eid al-Fitr Public Holiday
2 May Labour Day holiday National holiday
3 Jun Martyr’s Day Public Holiday
5 Jun Whit Sunday National holiday
9 Jun National Heroes Day Public Holiday
9 Jul Eid al-Adha Public Holiday
9 Oct Independence Day Public Holiday
1 Nov Remembrance Day National holiday
25 Dec Christmas Day Public Holiday
26 Dec Independence and Unity 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

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 130,000.00 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

*As of 2021, according to the National Social Security Fund Act of 2021, employees can voluntary contribute above the standard rate. Self-employed people can also apply for voluntary contributions.

Employee Income Tax

Resident Individuals 

Taxable Base (UGX) Tax on Column 1 (UGX) Tax on Excess (%)
0 – 2,820,000 0
2,820,001 – 4,020,000 10
4,020,001 – 4,920,000 120,000 20
4,920,001 – 120,000,000 300,000 30
120,000,001 and above 34,824,000 40

Non-resident Individuals 

Taxable Base (UGX) Tax on Column 1 (UGX) Tax on Excess (%)
0 – 4,020,000 10
4,020,001 – 4,920,000 402,000 20
4,920,001 – 120,000,000 582,000 30
120,000,001 and above 35,106,000 40

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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