Uganda

Overview

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 Languages: English, Swahili, Bantu, Central Sudanic, and Nilotic

Government: Democracy, Republic, Presidential System, Semi-presidential System

Capital City: Kampala

Other Major Cities: Nansana, Kira Town, Mbarara

Employment Contracts

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.

Work/Time Regulations

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

Leave

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.

Benefits

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.

How GPS can Help

With our Global PEO/Employer of Record services, companies can expand into Uganda and hire their employees without having to establish a branch office or subsidiary in Uganda.

  • Your candidate is hired via our Uganda PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services
  • Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll – all in full compliance with the Uganda laws
  • Global PEO Services experts manage all day-to-day operational issues, such as employee expenses, and severance/termination if required.
  • No contractor risks, pass on the compliance burden to Global PEO Services.

 Spin Off/M&A Support

  • Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.

24/7 Support in 100+ Countries

  • Empower your teams with 24×7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
  • We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.

Easy Visibility into Your Employee Time & Attendance and Benefits Data

With our Global PEO, you get access to our proprietary Mihi SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.

Ready for Growth When You Are

When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services here.

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