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Expand your Global Workforce to Uganda

Uganda 1
POPULATION

45,935,046

LANGUAGES

English, Swahili

COUNTRY CAPITAL

Kampala

CURRENCY

UGX

Uganda 2

Employment Laws in Uganda

Uganda has various statutes that govern the employment laws. These include the Employment Act, the Labour Unions Act, and the Occupational Safety and Health Act. These statutes dictate the employment standards, working hours, minimum wage, and other requirements. Failure to comply with the employment laws attracts hefty fines and legal consequences. Here is an overview of these laws.

16

Holidays Per Year

48 hrs per week

Working hours

Compensation & Benefits in Uganda

UGX 130,000

Average wage per month

3-4 weeks

Annual vacation leave (min)

Workers receive mandatory and additional benefits from their employers. Some of the benefits include annual leave, sick leave, paternity and maternity leave, NSSF contributions, and public holidays. The additional benefits include bonuses and health insurance.

An Overview of Income Tax in Uganda

The Uganda Revenue Authority (URA) collects and accounts for taxes in Uganda. An employer is obligated to withhold tax on payments of employment income made to employees. The tax rate ranges from 0% to 30% depending on the employee’s pay. The URA ensures proper compliance. Every payroll should show evidence of NSSF and withheld payroll deductions in Uganda.

Uganda has various statutes that govern the employment laws. These include the Employment Act, the Labour Unions Act, and the Occupational Safety and Health Act. These statutes dictate the employment standards, working hours, minimum wage, and other requirements. Failure to comply with the employment laws attracts hefty fines and legal consequences. Here is an overview of these laws. 

  • Minimum Wage. The Minimum Wage Bill of 2015 proposes a monthly minimum wage of UGX 130,000. 
  • Employment Contracts. There are three types of employment contracts in Uganda: express term, fixed-term, and indefinite period contracts. 
  • Working Hours. The legal maximum working hours in Uganda are eight hours per day and 48 hours per week.
  • Employee Benefits. Workers receive mandatory and additional benefits from their employers. Some of the benefits include annual leave, sick leave, paternity and maternity leave, NSSF contributions, and public holidays. The additional benefits include bonuses and health insurance.

Talent Grid Africa can help you with the following EOR services in Uganda. 

  • Hiring and Onboarding. We can help you recruit and onboard employees, ensuring compliance with Uganda labour laws. Our team will verify eligibility and manage the required documentation. 
  • Payroll Outsourcing. Our team handles payroll calculations and deductions, ensuring timely and accurate payments while complying with Uganda’s tax regulations. 
  • Tax Compliance. We handle all tax-related matters, including withholding and remitting taxes, ensuring adherence to local tax laws and regulations.
  • Mitigate Compliance. Our team ensures all employment-related legal obligations are fulfilled, including compliance with labour laws, timely and accurate filing of taxes, immigration support for expatriates, and meeting employment contract requirements.
  • As your employer of record in Uganda, we handle all employment compliance in line with local labour laws.
  • You can hire and onboard talent in Uganda quickly without setting up a local company. We act as your legal employer while you manage your team’s daily work.
  • We process accurate payroll every month ensuring timely payments and proper deductions for PAYE and other contributions.
  • Our team manages work permits and visas, making it easy for you to hire both local and foreign employees legally and efficiently.
  • We provide comprehensive HR and benefits administration in Uganda, including leave tracking, medical insurance, and pensions, to ensure your employees are well supported.
  • With our local expertise and risk management, we protect your business from compliance issues, giving you peace of mind to focus on growth.

Frequently Asked Questions

An Employer of Record is a third-party service provider that legally employs workers on your behalf, managing payroll, taxes, and compliance without the need for your company to set up a local entity.

No, with Talent Grid Africa’s EOR services, you can hire employees in Uganda without registering a local company.

Employees in Uganda work a maximum of eight hours per day and 48 hours per week as per the law.

Mandatory benefits include annual leave, sick leave, maternity and paternity leave, NSSF contributions, and public holidays. Employers may also offer additional perks like bonuses and health insurance.

We handle payroll, tax remittance, employment contracts, and immigration support for expatriates, ensuring adherence to all labour regulations and minimizing legal risks.