Payroll and Benefits Guide Uganda
Last updated: Mar 03, 2026
Contribution
|
Employer
|
Employer Payroll Contributions
|
|
|
10%
|
National Social Security Fund (NSSF) | |
|
10%
|
Total Employment Cost
|
|
|
Employee
|
Employee Payroll Contributions
|
|
|
5%
|
National Social Security Fund (NSSF) | |
|
5%
|
Total Employee Cost
|
|
Employee Income Tax
|
Annual | |
|
Residents:
|
||
|
0%
|
0 – 2,282,000 UGX | |
|
10%
|
2,282,001 – 4,020,000 UGX | |
|
20%
|
4,020,001 – 4,920,000 UGX | |
|
30%
|
4,920,001 – 120,000,000 UGX | |
|
40%
|
Above 120,000,000 UGX | |
|
Non-Residents
|
||
|
10%
|
0 – 4,020,000 UGX | |
|
20%
|
4,020,001 – 4,920,00 UGX | |
|
30%
|
4,920,001 – 120,000,000 UGX | |
|
40%
|
Above 120,000,000 UGX |
Employer taxes
Employee taxes
Payroll
Payroll Cycle
Payroll frequency is biweekly or monthly, paid at the end of every fortnight or month. Hourly and daily workers must receive their pay at the end of the current day or week.
Working Hours
General
The standard workweek is 8 hours per day or 48 hours a week.
Overtime
| Aspect | Regulation Details | Notes |
| Maximum Ordinary Hours | The statutory maximum is 8 hours per day and 48 hours per week. | Overtime is any work performed beyond these limits. |
| Daily Work Limit | The total working time, including overtime, generally should not surpass 10 hours per day. | This limits standard overtime to 2 hours per day, except where shifts are involved. |
| Absolute Weekly Cap | Total working hours, including overtime, must not exceed 56 hours per week. | |
| Consent | An employee generally does not have to work overtime if they are not interested in doing so, as overtime should be voluntary unless otherwise required by law or contract. | |
| Exemptions | The Act covers most employees, but certain managerial or supervisory employees whose terms are determined by contract may not be eligible for statutory overtime. |
Mandatory Overtime Pay Rates
Overtime compensation is mandatory.4 The minimum premium rate is determined by the day the overtime is worked.
| Day/Condition | Minimum Compensation Rate (Multiplier) | Total Pay Rate | Notes |
| Standard Overtime (Normal Working Days) | 1.5 times the regular hourly rate (Time and a half). | 150% | Applies to hours worked beyond 8/day or 48/week. |
| Weekly Rest Day Overtime | 2 times the regular hourly rate (Double Pay). | 200% | Applies to work on the designated weekly rest day (often Sunday). |
| Public Holiday Overtime | 2 times the regular hourly rate (Double Pay). | 200% | This premium is the minimum for work on an official public holiday. |
Compensation Note
-
Written Agreement: The 150% and 200% minimum rates apply if there is no written agreement to the contrary (though any written agreement cannot offer less than the statutory minimum).
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Piecework/Commission: Overtime for piecework or commission-based pay must be calculated based on the employee’s normal rate or an hourly conversion of their earnings, multiplied by 6$1.5$ or 7$2.0$ as applicable.
Leave
Annual Leave (vacation)
Employees are entitled to a minimum of 21 working days of paid annual leave, accruing at a rate of seven days for each continuous period of four months of service. Employees may not relinquish their right to annual leave in exchange for monetary compensation. Failure to apply for leave within a certain year implies forfeiture of the employee’s right to leave, the alternative option is for the employer to defer the employee’s leave to another year. The maximum carry over of unused leave is one year. Leave is granted when the employee applies for it, an employer may not force an employee to go on leave.
In the event of termination, an employee is entitled to compensation for any unused annual leave.
Public Holidays
Public holidays that fall on the weekend are usually lost. Some religious holidays are determined by the lunar cycle and will show as ‘Tentative’ until they are confirmed nearer the date of the holiday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 26 January 2026 | Monday | NRM Liberation Day | Standard holiday |
| 16 February 2026 | Monday | Remembrance of Archbishop Janani Luwum | Standard holiday |
| 8 March 2026 | Sunday | International Women’s Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | |
| 3 June 2026 | Wednesday | Uganda Martyrs’ Day | Standard holiday |
| 9 June 2026 | Tuesday | National Heroes Day | Standard holiday |
| 9 October 2026 | Friday | Independence Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
Sick Leave
If an employee is unable to work due to illness, they can take up to 2 months of sick leave per year. The first month of absence is paid by the employer at full pay and benefits. The second month of absence is unpaid. If an employee is still unable to work due to sickness at the end of the second month, the employer may terminate their employment.
Leave entitlement applies to employees who work at least 16 hours per week and have completed at least one month of continuous service.
Employees must promptly notify their employer of their absence and provide a written certificate from a qualified medical practitioner.
Maternity Leave
Female employees are entitled to 60 working days of paid maternity leave. They must provide at least seven days’ written notice before beginning their leave and returning to work afterward. Maternity leave can be extended by 20 additional workdays in exceptional circumstances, such as illness related to the pregnancy or childbirth.
Paternity Leave
Male employees are entitled to four paid days of paternity leave per year following the birth of a child or their wife’s miscarriage.
Other Leave
Employees are entitled to three paid days of compassionate leave on a single occasion and a maximum of six paid days in a given calendar year due to the death of a family member or dependent relative.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Employers cannot terminate employees at will in Uganda and must have legitimate grounds for termination. Prior to termination, a fair hearing/consultation procedure should be followed, with the reasons for termination being explained.
Employers who terminate unfairly must compensate the affected employee with a basic compensation order for four weeks’ salary. If an employee is served a notice of termination by the employer, he or she may terminate the contract of employment before the end of the notice period without having to compensate the employer for the remainder of the notice period.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| If worker is hired for a day → wage must be paid at end of that day. For weekly employments → at end of the week. For fortnightly or monthly pay basis → at end of each fortnight or month. For piecework/results based pay → intervals of not more than one fortnight. | The employer must settle all wages and entitlements when employment ends. | Wages must be paid in money/legal tender. Payment at the workplace is standard, but with prior written consent of the worker, payment may be by bank cheque, postal order, money-order, or direct deposit into worker’s bank account. |
Notice Period
The required notice period depends on the employee’s length of service as follows:
- Less than six months of service: no notice required
- More than six months but less than one year service: two weeks notice
- More than 12 months but less than five years service: one month notice
- More than five years but less than 10 years: two months notice
- 10 years or more service: three months service
The employer can choose to Pay in Lieu of Notice.
Severance Pay
Employers are required to provide severance pay in the following circumstances:
- Cases of unfair dismissal
- If an employment contract is terminated due to the employer’s insolvency or death
- If the employee dies while in the employ of the employer
- If the employee terminates the contract due to physical incapacity
To qualify for severance pay, the affected employee must have completed a minimum of six months of continuous service. The amount of severance pay is negotiated between the employer and the employee or the labor union representing the employee.
Probation Period
The maximum probation period should be 6 months. An extension to the probation period might be possible with the workers consent. An employee may not be placed on probation twice by the same employer.
During the probation period, either the employee or employer can terminate the employment contract by giving 14 days’ notice or by the employer paying seven days’ wages in lieu of notice.
Common Benefits
Employers in Uganda frequently offer employment insurance and health insurance as supplemental employee benefits. These types of insurance policies are handled by private service providers.
Immigration
Foreign nationals planning to work in Uganda, whether for paid employment or as volunteers, are required to obtain a work permit. It’s crucial for them to choose the appropriate type of work permit before commencing the application process. The following are the common types of work permits for paid employment in Uganda:
- Class A and A2: For government employees, diplomats and government contractors
- Class B: For foreign nationals who intend to invest in the agricultural industry
- Class C: For foreign nationals who intend to invest in the mining industry
- Class D: For foreign nationals who intend to engage in business or commerce in Uganda
- Class E: For manufacturers who plan to invest in or establish a manufacturing business in Uganda
- Class F: For working professionals who intend to practice their profession in Uganda
The duration of work permits in Uganda varies from six months to 36 months.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 26 January 2026 | Monday | NRM Liberation Day | Standard holiday |
| 16 February 2026 | Monday | Remembrance of Archbishop Janani Luwum | Standard holiday |
| 8 March 2026 | Sunday | International Women’s Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | |
| 3 June 2026 | Wednesday | Uganda Martyrs’ Day | Standard holiday |
| 9 June 2026 | Tuesday | National Heroes Day | Standard holiday |
| 9 October 2026 | Friday | Independence Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
Questions & Answers