Country Payroll Guide Uganda

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Key Facts

Capital
Kampala
Date format
dd/mm/yyyy
Currency
Ugandan Shilling (UGX)
VAT
the standard rate is 18%

Contributions

Employers

Social Security
Social Security - 10%
Total Employment Cost
Total Employment Cost - 10%

Employees

National Security Fund
National Security Fund - 5%
Total Employee Cost
Total Employee Cost - 5%

Minimum Wage

Minimum Wage
The minimum wage in Uganda is 6000 UGX per month.

Payroll

Payroll Cycle
Bi-Weekly, Monthly
13th Salary

There are no provisions in the law regarding 13th salaries.

Income Tax

Employee Income Tax (1)
Up to 2,820,000 UGX - 0%
Employee Income Tax (2)
2,820,001 - 4,020,000 UGX - 10%
Employee Income Tax (3)
4,020,001 - 4,920,000 UGX - 20%
Employee Income Tax (4)
4,920,001 - 120,000,000 UGX - 30%
Employee Income Tax (5)
Over 120,000,001 UGX - 40%

Working Hours

General Working Hours

48 hours per week, over 6 days.

Overtime

Overtime rates and hours must be outlined in the contract of employment.

Leave

Paid Time Off

Employees are entitled to at least 21 days of annual leave per year.

Public Holidays

15 public holidays.

Sick Days

Employees are entitled to sick leave if they have been in continuous employment for more than one month, this will be paid at the employee’s regular rate.

Maternity Leave

Female employees are entitled to 60 days of fully paid maternity leave, at least 4 weeks of this leave must be taken after the birth. An additional 4 weeks can be added in the event of complications regarding the birth.

Paternity Leave

4 fully paid days of paternity leave.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

Compassionate leave: An employee can receive up to 14 days of compassionate leave in the event of serious illness or death of an immediate family member.

Termination

Termination Process

For an employer to terminate a fixed term contract, they must provide notice, however an employee is not obligated to provide notice for a fixed term contract. If the employee breaks their obligations under the employment contract, the employer is not required to provide a notice period.

Notice Period

The employer is required to give between two weeks and three months, depending on the length of service.

Severance Pay

Employees are entitled to severance pay once they have been in continuous employment for more than six months, the rates will be outlined in the contract of employment.

Probation Period

Up to 6 months.

Visa

Employment Visa

Any foreign national who plans to travel to Uganda for work purposes will need to get a work permit. Options for work permits include Class A and A2, Class B, Class C, Class D, Class E, Class F, Class G1 and G2.