Uganda
Employ in Uganda without an entity.
A contract under Uganda's Employment Act, pay in shillings, and social security and income tax handled every month. One contact and one invoice.
The facts of employing in Uganda.
Paid in shillings, every month.
With a rest day after no more than six days in a row.
NSSF at 15% of gross pay.
10% from the employer and 5% from the employee.
Income tax up to 30%.
And 10% more on income above UGX 10,000,000 a month.
Every employer registers.
With the NSSF, whatever its size.
What employing in Uganda involves, in plain words.
Each is handled for everyone you employ through Global Kinect EOR.
- Contracts
Written particulars of the job, the pay, the hours and the leave, given within twelve weeks of the start.
- Trial period: up to six months, and by agreement up to twelve in total.
- NSSFSocial security
The National Social Security Fund, on gross monthly pay.
- 10% from the employer and 5% from the employee, paid by the 15th of the next month.
- PAYEIncome tax
Withheld by the employer each month, on monthly bands.
- Nothing up to UGX 335,000 a month, then 20%, 25% and 30%.
- A further 10% on income above UGX 10,000,000 a month.
- Leave
Seven days of annual leave on full pay for every four months' service, after six months' continuous service.
- Sick pay, after a month's service: two months on full pay, then four on half pay.
- Maternity leave: 60 working days on full pay.
- Paternity leave: four working days on full pay.
- Ending employment
Notice rises with service: two weeks after six months, a month after a year, two months after five years and three months after ten years.
- Severance, where the Act gives it: a month's salary for each year worked.
- An unfair dismissal costs at least eight weeks' wages, and up to three months' more.
- Work permits
A foreign employee needs an entry permit in Class G2, granted before they enter Uganda to take up the job.
Hiring in Uganda, step by step.
You choose the person
And agree the role and the salary in shillings.
The contract is put in place
Under Uganda's Employment Act, with a work permit where one is needed.
They are paid monthly
In shillings, with NSSF and income tax handled.
You get one invoice
With every other country you hire in.
Questions about employing in Uganda
What does an employer pay into social security in Uganda?
Employers in Uganda pay 10% of each employee's gross monthly pay to the National Social Security Fund, and deduct a further 5% from the employee. Contributions are due by the 15th of the following month. Every employer must register with the Fund, whatever its size.
What permit does a foreign employee need?
How is income tax worked out?
Employing in Uganda, worked through in full.
The guide goes further than this page.
- Hiring in Uganda: the entry permit, the contract and what comes off pay, step by step
How you hire in Uganda without an entity of your own: the entry permit step by step, moving someone already in Uganda, the contract, the employee test, what comes off pay each month, leave, and what changed this year.
8 min read