Guide to employment, payroll and benefits in

Uganda

Rivermate offers complete payroll, benefits and compliance services for

Uganda

01. Overview

Last updated: 

August 19, 2021

Currency
Ugandan Shilling
Capital
Kampala
Ease of doing business
60
Language
English
Population
45741007
GDP growth
3.86%

02. Grow your team in

Uganda

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Uganda

, particularly if you don't have established local relationships. You can hire employees in

Uganda

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Uganda is a landlocked nation in East-Central Africa, formally known as the Republic of Uganda. Kenya borders it on the east, South Sudan on the north, the Democratic Republic of the Congo on the west, Rwanda on the south-west, and Tanzania on the south. The country's southern region contains a large portion of Lake Victoria, which it shares with Kenya and Tanzania. Uganda is located in the Great Lakes region of Africa. Uganda, like the rest of the Nile basin, has a diverse but mostly changed equatorial climate. Uganda is named after the Buganda empire, which spans a wide part of the country's south, including Kampala, the capital. Ugandans were hunter-gatherers before Bantu-speaking peoples moved to the country's southern regions 1,700 to 2,300 years ago. The region was administered as a protectorate by the United Kingdom beginning in 1894, which defined administrative law throughout the territory. On October 9, 1962, Uganda declared independence from the United Kingdom. Since then, violent conflicts have characterized the country, including an eight-year military dictatorship led by Idi Amin. Although "any other language" may be used as a medium of instruction in schools or other educational institutions, or for legislative, administrative, or judicial purposes as may be prescribed by law, the official languages are English and Swahili. Luganda, a central region-based language, is widely spoken across the Central and South Eastern regions of the country, and many other languages are also spoken.

04. Public holidays

05. Types of leave

Paid time off

After six months of continuous employment, employees are entitled to 21 days of paid annual leave if they work a minimum amount of hours each week. Collective labor agreements may offer additional vacation time.

Public holidays

The following public holidays are observed in Uganda:New Year’s DayLiberation DayArchbishop Janani Luwum Memorial DayInternational Women’s DayGood FridayEaster MondayLabour DayEid al-FitrUganda Martyrs’ DayNational Heroes’ DayFather’s DayEid al-AdhaIndependence DayChristmasBoxing Day

Sick days

After one month of continuous employment, employees who work at least 16 hours per week are eligible to paid sick leave. This sick leave is paid at the full rate of the employee's regular salary.

Maternity leave

Employees who are female are entitled to 60 days of paid maternity leave. After the kid is born, at least four weeks of maternity leave must be taken. In the event of illness or delivery problems, maternity leave might be extended for up to four weeks.

Paternity leave

Male employees are entitled to four days of paternity leave.

Parental leave

Apart from maternity and paternity leave, there is no statutory parental leave in Uganda.

Other leave

06. Employment termination

Termination process

An employment contract may be terminated at the conclusion of the contract term, with or without notice, by either the employer or the employee. Employers have the right to fire an employee without cause if the employee has materially breached their employment contract responsibilities. Otherwise, the employer must offer notice to the employee. The notice period is between two and three months, depending on the duration of employment of the employee.

Notice period

The required notice period is determined by the employee's length of service. The notice period is two weeks for employees who have served for more than six months but less than one year. The notice period is one month for employees who have served for more than twelve months but less than five years. The notice period is two months for employees who have served for more than five but less than ten years. The notice period is three months for employees who have served for more than ten years.

Severance pay

Although the law contains a provision for severance pay, this compensation is negotiable between the employer and the employee. After six months of continuous service, the employee is entitled to severance pay. It is due in the following circumstances: unfair dismissal of the worker by the employer; death of the worker on the job not attributable to the worker's misconduct; termination by the worker due to physical incapacity not attributable to the worker's misconduct; termination due to the employer's death or insolvency; termination by a labor officer due to the inability or insolvency of the employer. Severance pay is negotiable between the employer and the employee or their labor union.

Probation period

Probation periods are limited to six months but may be extended to one year with the consent of a worker.

07. Working hours

General

In Uganda, the standard workweek is 48 hours spread over six days. Employees are not permitted to work more than 10 hours per day or more than 50 hours per week. However, there are exceptions for shift work.

Overtime

Employees are entitled to overtime pay for work performed outside of their normal work hours.

08. Minimum wage

General

Uganda currently has no minimum wage.

09. Employee benefits

General

The government offers free healthcare to all citizens. Employers, on the other hand, often provide supplemental private healthcare insurance.

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Uganda

to hire a team takes time, money, and effort. The labor law in

Uganda

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Uganda

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Uganda

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Uganda

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.