Uganda

Employer of Record (EOR) in Uganda

Only 299 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Uganda . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Uganda.

Employer of Record people
A coin
Currency
Ugandan Shilling
A pin
Capital
Kampala
A paper airplane
Region
Africa
Megaphone
Language
English
Hire remote employees
Population
45741007
A pile of gold
GDP
$26.00 billion
Line graph
GDP growth
0.0386
Business suitcase
Ease of doing business
60
Planet earth
World GDP share
0.0003

1. Grow your team in Uganda with Rivermate as your Employer of Record (EOR) / PEO

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 Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Uganda (Yuganda in Ugandan languages), formally the Republic of Uganda (Swahili: Jamhuri ya Uganda), is an East African landlocked republic. Kenya borders the nation 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 comprises a large chunk of Lake Victoria, which it shares with Kenya and Tanzania. Uganda is located in Africa's Great Lakes area. Uganda, which is similarly located in the Nile valley, has a variable but usually modified tropical climate. It has a population of approximately 42 million people, with 8.5 million living in Kampala, the capital and biggest city.

Uganda is named after the Buganda kingdom, which spans most of the country's south, including the capital Kampala.

The region was administered as a protectorate by the United Kingdom beginning in 1894, which created administrative law across the territory. Uganda obtained independence from the United Kingdom on October 9, 1962. Since then, there have been violent battles, including an eight-year military dictatorship headed by Idi Amin.

Although English and Swahili are the official languages, the Constitution stipulates that "any other language may be used as a medium of instruction in schools or other educational institutions or for legislative, administrative, or judicial functions as may be authorized by law." Luganda, a central region-based language, is extensively spoken across the nation, as are numerous other languages, including Ateso, Lango, Acholi, Runyoro, Runyankole, Rukiga, Luo, Rutooro, Samia, Jopadhola, and Lusoga.

Yoweri Kaguta Museveni, Uganda's current president, came to power in January 1986 following a six-year guerrilla battle. Following constitutional revisions that abolished term restrictions for the president, he was allowed to run for and be elected president of Uganda in 2011, 2016, and 2021.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Uganda is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

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

Uganda recognizes 18 national public holidays.

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

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

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

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the minimum wage for this country.

Uganda currently has no minimum wage.

8. Employee benefits

There is no information about the employee benefits for this country.

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.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

A resident business gets taxed on all of its revenue, regardless of where it comes from. A non-resident business is only taxed in Uganda on revenue generated from Ugandan sources.

The income tax rate on chargeable income of businesses is 30%, with the exception of resident enterprises having a turnover of less than UGX 150 million, to whom presumptive tax applies.

Chargeable income is defined as gross income for the year minus any deductions permitted under the Income Tax Act (ITA).

Individual income tax

A resident's gross income comprises earnings from all geographical sources. A non-gross resident's income comprises solely money received from Ugandan sources.

Individuals are taxed on their gross income for the year, minus any permitted deductions given by the ITA.

For a taxable income of up to UGX 2,820,000, the tax rate is 0.

For a taxable income from UGX 2,820,001 to UGX 4,020,000, the tax rate is 10 percent.

For a taxable income from UGX 4,020,001 to UGX 4,920,000, the tax rate is 20 percent.

For a taxable income from UGX 4,920,001 to UGX 120,000,000, the tax rate is 30 percent.

For a taxable income over UGX 120,000,001, the tax rate is 40 percent.

For non-resident individuals, the personal income tax generally ranges from 10 percent to 40 percent.

VAT, GST and sales tax

The VAT Act governs VAT, and the URA is in charge of enforcing it. In Uganda, VAT is levied at an 18% rate on the supply of the majority of products and services in the course of business. Certain products and services, as well as exports outside of Uganda, are exempt from taxation.

Some supplies are exempt from VAT, the main categories being government subsidies, some unprocessed foodstuffs, financial services, health and life insurance, agriculture insurance policies, re-insurance services, unimproved land, leases and sale of certain residential properties, betting and gaming, education, medical and health services, imported drugs and medicines, social welfare services, pesticides, and petroleum products subject to excise duty.

The VAT on expenses spent in producing a zero-rated delivery may be recovered, while costs incurred in making an exempt supply cannot.

The supply of goods and services exported from Uganda; the supply of drugs and medicines manufactured in Uganda; the supply of seeds, fertilizers, pesticides, and hoes; and the supply of leased aircraft, aircraft engines, spare engines, spare parts for aircraft, and aircraft maintenance equipment are all zero-rated supplies.

In addition to exempted and zero-rated goods, there is a presumed VAT system that applies to upstream and midstream oil and gas activities, mining operations, and aid-funded projects. The tax payable on a taxable supply made by a supplier to a contractor executing an aid-funded project and by a contractor to a licensee to undertake mining or petroleum operations is deemed to have been paid by the supplier (in the case of the aid-funded project) or the contractor (in the case of mining and petroleum operations), provided the supply is solely and exclusively for the contractor's use.

10. VISA and work permits

There is no information about VISA and work permits for this country.

The Uganda visa policy establishes the prerequisites for an application, such as the kind of travel document or limits that a foreigner must consider in order to visit the East African country.

The regulations and guidelines are established by considering the traveller's nationality, the purpose of their journey, and the duration of their stay into account.

For many, Uganda's visa policy is unrestricted. These passport holders from more than 30 countries are not need to get a visa in order to visit the nation.

Travelers from these countries will only need to show a valid passport to obtain entry for up to 90 days. The passport must be valid for a minimum of six months. The visa exemption applies to travels that are primarily for tourist, business, or transit to a third location.

The Uganda policy also indicates that the remainder of the nationalities have three alternatives for tourism, medical treatment, family visits, or conducting business. They have the option of applying for an electronic travel permission (the simplest option) or obtaining a visa on arrival.

Visas are not exempted. Passengers passing through Uganda for less than two days must get a transit or electronic transit visa.

Any additional journey to Uganda that lasts longer than three months and is for reasons other than those stated above will need either a student visa, a work permit, or another suitable authorization, depending on the circumstances.

A unique visa is also available: the East African visa. It permits tourists to visit three East African nations for tourism reasons without having to get all of the necessary visas.

Somali nationals are not permitted to enter or transit Uganda unless they have a biometric passport.

Through the years, Uganda's visa policy has encouraged tourism. The government established the eVisa platform in July 2016. The goal of this new method was to simplify the paperwork required to get an electronic visa or travel authorisation to enter the nation.

Visas are not required for less than 40 countries in Uganda. For the remaining travelers, the electronic visa, or eVisa, is one of the options available to citizens of non-visa-exempt countries seeking to enter Uganda.

They may also get visas on arrival. It is not, however, as efficient or as fast as obtaining an eVisa since travelers may have to wait in large queues until they reach at their entry port.

It is also possible to apply for an East Africa visa online using the Uganda eVisa system.

All foreigners entering Uganda, including those without a visa, must have a passport valid for at least six months from the date of departure.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Employment agreements may be either oral or written. If the contract is written, it must be in a language that both the employer and the employee understand. Employment contracts must include:

Employee and employer addresses

The job's title and nature

Salary information

Rate of remuneration for overtime

Working schedules

The date of the start

Severance salary and notice period

If the contract is oral, the employer is obligated to furnish an employee with a written copy of the contract upon request. Both the employer and the employee must sign written contracts.

With Rivermate being your Employer of Record (EoR) in Uganda, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Ugandan Shilling

13.Opening a subsidiary in Uganda

There is no information about the working hours for this country.

How to set up a subsidiary

When deciding how to establish up a Uganda subsidiary, you must evaluate all of the aspects that may influence your incorporation procedure. Everything from the location in which you establish your office to the company you register might have an impact on the Uganda subsidiary rules that you must follow. That is why we suggest consulting with a professional or a third-party consultant who can help you locate the ideal spot to incorporate.

Next, you must consider your objectives for working in Uganda. The sort of structure you need to succeed will be determined by your intended company activities. For example, if you wish to operate as a resident firm, you need form a limited liability corporation (LLC). If you merely require an office in Uganda to conduct a few basic duties, a branch office is a preferable option.

The following are the stages to forming an LLC:

1. Completing certified copies of the Memorandum of Association

2. Completing further registration forms and paying the applicable costs

3. Providing a full list of all the company's directors and secretaries, as well as their personal information

4. The Uganda Revenue Authority can help you get a Tax Identification Number.

Subsidiary laws

Uganda's subsidiary laws can differ depending on company, region, and other circumstances, therefore it's critical to identify the rules that apply to your organization. According to Uganda's Company Act of 2012, LLCs must have at least two directors and one shareholder. There is no minimum share capital requirement, but you must pick a distinct business name that includes the words "Ltd." or "Limited" at the end.

All Ugandan businesses must hire a company secretary, however there are no educational requirements. Despite the fact that the necessity for one to two directors has made incorporation a bit more complex, most businesses still prefer the LLC structure. Keep in mind that as a private LLC, you cannot sell business stock to the general public.

13. Why choose Rivermate as your Employer of Record / PEO in Uganda

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 (EOR) 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 (EOR) / PEO solution.

A woman relaxing and drinking coffee
Hire anyone, anywhere
Ready to get started?
Get started