Uganda PEO Services

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Hire & Pay Employees in Uganda

Uganda PEO & Employer of Record Services

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Global PEO Services (GPS) helps companies hire employees in Uganda without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.

When hiring employees in Uganda, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Uganda labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Uganda. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

Uganda - Country Overview

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Uganda has ample natural resources including deposits of copper, gold, and other minerals, recently discovered oil, and regular rainfall. Agriculture is a major sector of the economy, employing one-third of the workforce. Coffee is a principal contributor to export revenues.

Public infrastructure investment, improvements in the services sector, mainly in trade, banking, information and communication technology, transport, and recovery in manufacturing and construction are expected to drive economic growth.

Currency

Ugandan Shilling

Principal Language

English, Swahili, Bantu, Central Sudanic, and Nilotic

Government

Democracy, Republic, Presidential System, Semi-presidential System

Capital City

Kampala

Major Cities

Nansana, Kira Town, Mbarara

Employment Contracts in Uganda

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Written employment contracts are not mandatory but common in Uganda. Employees must be provided with specific minimum terms in writing within 12 weeks of commencement of employment. These minimum terms are:

  • The date on which the employment began under the contract, which implies the date from which the employee’s period of continuous service, for the purpose of the Employment Act, shall begin
  • Full name and address of the parties to the contract of service
  • The title of the job
  • The place where the employee’s duties are to be performed
  • The rate of applicable overtime pay
  • The wages, the intervals at which they will be paid, and the deductions or other conditions which apply to them
  • The number of days of annual leave to which the employee is entitled
  • The employee’s normal working hours, shifts or days of the week on which such work is to be done
  • The terms or conditions relating to incapacity to work due to injury or sickness, including any provision for sick pay

The length of notice in excess of that provided by the Employment Act required for the contract’s lawful termination by the employer or employee.

Working Hours in Uganda

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The maximum workweek is 48 hours. Employees may work in excess of 48 hours, but working hours must not exceed 10 hours a day or 56 hours a week. Working hours must not exceed 10 hours a day or 56 hours a week for shift workers over a 3-week period.

Overtime

Overtime rate:

  • 5 times the regular hourly pay for work done on normal days
  • 2 times the regular hourly pay for work done on gazette public holidays

Employee Leave in Uganda

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Holidays

The following public holidays are observed in Uganda:

  • New Year’s Day – January 1
  • NRM Victory day – January 26
  • Bishop Janan Luwum Day – February 16
  • International Women’s Day – March 8
  • Good Friday
  • Easter Monday
  • Labor Day – May 1
  • Martyrs’ Day – June 3
  • Eid al-Fitr
  • National Heroes Day – June 9
  • Eid al Adha
  • Independence Day – October 9
  • Christmas Day – December 25
  • Boxing Day – December 26

Annual Leave

Employees are entitled to a minimum of 21 days’ annual leave each year.

Sick Leave

Employees are allowed to take up to 2 months’ sick leave and are entitled to full pay for the 1st month only. The employer may terminate the employment contract if the employee is absent for 2 consecutive months.

Maternity/Parental Leave and Pay

Pregnant employees are entitled to 60 days’ paid maternity leave, of which at least 4 weeks must be taken post childbirth. Male employees are entitled to 4 days’ paid paternity leave. Female employees cannot be terminated during maternity leave period or for any reasons related to their pregnancy.

Employee Benefits in Uganda

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Pension & Social Security

Old-Age Benefits
A lump sum of contribution (employee and employer) plus accrued interest is paid. Interest rate adjustment: the interest rate is based on the National Social Security Fund’s rate of return and set after consulting Minister of Finance, Planning, and Economic Development.

Permanent Disability Benefits

Disability Benefit:
A lump sum of contribution (employee and employer) plus accrued interest is paid.

Interest Rate Adjustment: the interest rate is based on the National Social Security Fund’s rate of return and set after consulting Minister of Finance, Planning, and Economic Development.

Survivor Benefits

Survivor Benefit: A lump sum of contribution (employee and employer) plus accrued interest is paid.

Interest Rate Adjustment: the interest rate is based on the National Social Security Fund’s rate of return and set after consulting Minister of Finance, Planning, and Economic Development.

Workers’ Compensation 

Temporary Disability Benefits
The benefit is provided as a lump sum or over periods. The amount is based on the assessed degree of disability, circumstances of the accident, probable duration of the disability, and the loss of earnings.

The benefit is provided for a maximum of 96 months and can be extended post a medical examination.

Permanent Disability Benefits
A lump sum of 60 months’ earnings (maximum) is paid to the insured individuals assessed with a total disability.

Constant-attendance supplement: The insured receive 25% of the permanent disability benefit if they need constant attendance of others to carry out daily functions.

Partial Disability: A specific percentage of the total benefit is paid based on the assessed degree of disability.

Workers’ Medical Benefits
Benefits include surgical, medical, and nursing care; medicine; and hospitalization.

Survivor Benefits
A lump sum of deceased’s 60 months earnings (maximum) is paid, minus 50% of the value disability benefits paid to the deceased for the accident before death.

Fully dependent survivors receive the full benefit. In the absence of eligible survivors, the employer is required to pay expenses for medical care deceased used to receive, and the cost of the funeral.

Retirement in Uganda
The official age of normal retirement in Uganda is 55 years which is a policy rather than a Legal matter as it is not provided in Law. There is no early retirement age in Law or by practice in Uganda.

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