Uganda Employer of Record & Payroll

ADS EOR & Payroll Uganda

Africa Deployments Uganda offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed-term contracts based on your requirements in Uganda for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our clients on best Human Resource (HR) practices when setting up employees locally in Uganda under Employer of Record services. ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis, ensuring full compliance with the law. We will also ensure that salaries are paid on time monthly and issue pay slips. In addition to our services, we can offer employees in Uganda Medical, Disability, Life, and Workmen’s Compensation Insurances.

Uganda Overview

• Population: 45.85 million (2021)
• Currency: Ugandan Shilling
• Capital: Kampala
• Language: Swahili / Ugandan English / English
• GDP: 40.53 billion USD (2021)
• Industries: Agriculture and Services

Main Languages Spoken in Uganda: Uganda is a multilingual country with over ±70 languages spoken. The most spoken language in the capital city is Luganda, followed by English (also the official language since 1962). Other widely spoken languages include Swahili. The three major indigenous language families are Bantu, Central Sudanic, and Nilotic.

Types of Employment Contracts in Uganda: Through our Employer of Record (EOR) solutions in Uganda, we can offer the following types of employment contracts:

• Fixed Term
• Indefinite Term

Contracts and Offer Letters must:

• Be in writing
• Be in the official local language and the local currency
• Include salary/compensation, benefits, and termination requirements

Full-Time Employees:

• Have specific working terms and conditions
• Can be eligible for organizational perks and/or other benefits
• Tend to be more focused on one employer and familiar with the specific business due to ongoing company training
• Probationary period is 6 months (maximum) but may be extended for a further period of not more than 6 months with the agreement of the employee

Taxable Income in Uganda: Any individual who works and lives in Uganda for more than 183 days a year will be subject to local taxes in Uganda. The tax year runs from 01 July to 30 June of the following year. Taxable income includes:

• Cash earnings, wages, salary
• Overtime, leave pay, or payment in lieu of leave
• Commissions, gratuity, bonuses, or any other financial benefit received

Tax-Exempt Income in Uganda:

• Pensions
• Emoluments payable to employees of the East African Development Bank (since 01st July 1997)
• Official employment income of persons employed by the Uganda Police Forces, Ugandan Army, Ugandan Prison/Correctional Services, or within a civil capacity

Standard Working Hours and Overtime Pay:

• Standard working hours: 8 hours per day, 48 hours per week
• Overtime limit: Should not exceed 10 hours per day or 56 hours per week (except for shift workers)
• Rest day: Employees are entitled to 24 hours of uninterrupted rest each week
• Overtime pay:
  • More than 8 hours/day or 48 hours/week: Minimum of 1.5 times the regular hourly rate
  • Public holidays: Double the normal hourly rate

Mandatory Contributions:

• Employee Contribution: 5% of gross earnings (Social Security)
• Employer Contribution: 10% of gross earnings (Social Security)

Maternity and Paternity Leave in Uganda:

• Maternity Leave: 12 weeks / 60 working days (minimum of 4 weeks post-birth)
• Paternity Leave: 4 days paid leave per year

Types of Leave in Uganda:

• Annual Leave: 7 days of full pay for four months of continued service (to be used during the calendar year)
• Public Holidays: 15 per year as per government gazette
• Sick Leave: Eligible after one month of continuous service. Full pay for the first month; if the employee has not returned to work after two months, the employer can terminate the contract

Bonus and Gratuity in Uganda:

• Mandatory Bonus: No statutory requirement for a 13th-month salary or annual bonus
• Severance Pay: Provided in cases of unfair dismissal, employer insolvency, or inability to pay wages

Fringe Benefits in Uganda:

• Employers can provide fringe benefits, but they will be subject to PAYE tax unless they cannot be converted to cash. If an employer covers expenses such as a mobile phone, it must be subject to PAYE tax, either covered by the employer or deducted from the employee’s salary.

Probation Period in Uganda:

• Maximum of six months, extendable by another six months with the employee’s consent

Corporate and VAT / Sales Tax Rates in Uganda:

• Corporate Tax Rate: 30% (general)
• VAT / Sales Tax Rate: 18% (on most goods and services)

Public Holidays in Uganda:

• January 1 – New Year’s Day
• January 26 – NRM Liberation Day
• February 16 – Archbishop Janani Luwum Day
• March 08 – International Women’s Day
• April 07 – Good Friday
• April 10 – Easter Monday
• April 21 – Eid-Ul-Fitr
• May 01 – Labor Day
• June 03 – Martyrs’ Day
• June 09 – National Heroes’ Day
• June 29 – Eid Al Adha
• October 09 – Independence Day
• December 25 – Christmas Day
• December 26 – Boxing Day

Industries Supported in Uganda:

• Non-Governmental Organizations (NGOs) / Non-Profit
• Engineering & Construction
• Government / Development Agencies
• Oil & Gas
• FMCG & Manufacturing
• Private Equity, Finance, Insurance & Banking
• Mining
• Agriculture

• Contact Us
  For detailed assistance with Employer of Record (EOR) services in Uganda, including specific payroll and employment solutions tailored to your needs, contact our team at Africa Deployments.