Ugandan Shilling (UGX)
Hire employees in Uganda. No entity needed.
Usually, to hire in Uganda, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Uganda also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Uganda quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Uganda
built right in
Deel allows you to provide localized benefits for employees in Uganda within minutes. All in one manageable online dashboard.
- Private Healthcare - Unisure (optional)
- Workman’s Compensation Insurance
Our quickstart guide to hiring in Uganda
Navigate the tabs below to learn everything you need to know about hiring an employee in Uganda
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
|Gross Annual Income||Tax Rate (%)|
|Up to UGX 235,000||0%|
|UGX 235,000 to 335,000||10%|
|UGX 335,000 to UGX 410,000||20%|
|Over UGX 410,000||30%|
The employer cost is generally estimated at 10.30% of the employee's salary.
- National Social Security Fund 10.00%
- Workman’s Compensation Insurance - 0.30%
Overtime Pay & Maximum Hours
Pregnant employees are entitled to 60 working days of paid leave. 28 days must be taken after the child's birth. The remaining days can be divided into two periods of time. The employee will receive 100% of their salary during this period, and the employer will be responsible for this pay.
The employee can extend leave an additional 4 weeks due to sickness at 100% pay.
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Uganda can be complex. There is no at-will termination in Uganda for employers and termination must be done for just cause. Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- By the expiration of the contract
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
The minimum notice period is 2 weeks and will be increased according to the length of employment.
- Two weeks notice for service of more than six months but less than one year.
- One month notice for service of more than 12 months but less than five years.
- Two months notice for service of more than five years but less than ten years.
- Three months notice for service of 10 years or more.
Severance for Employees
In Uganda, all employees who are terminated because of the following are entitled to severance pay unless termination is due to gross misconduct or they have worked under 6 months.
- The employee is unfairly dismissed by the employer.
- The employee dies in the service of his or her employer unless death is due to an act occasioned by his or her of serious and willful misconduct.
- The employee terminates his or her contract because of physical incapacity not occasioned by his or her own serious and willful misconduct.
- The contract is terminated by reason of the death or insolvency of the employer.
- The contract is terminated by a labor officer following the inability or refusal of the employer to pay wages under section 31 of the Labour Act.
- Such other circumstances as the Minister may, by regulations, provide.
Severance pay is negotiated between the employee and the employer but the standard is 1 month for every year of service. In the absence of such a negotiated agreement, the determination may be done by a labor officer.
To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country. Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.
Paid Time Off
Uganda celebrates 13 national holidays. National public holidays include:
- New Year’s Day
- NRM Liberation Day
- International Women’s Day
- Good Friday
- Easter Monday
- Labor Day
- Martyr’s day
- National Heroes’ Day
- Eid al- Fitr
- Independence Day
- Eid al-Aduha
- Christmas Day
- Boxing Day
Employment Contract Details
Contracts must be in English. They must be in writing and signed by both parties.
A contract must include:
- Start date
- Length of the employment
- Job description
- Termination conditions
Hiring in Uganda, hassle-free
With Deel, your business can easily hire employees in Uganda. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
Estimate Employer Cost
*of employee salary
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