Powering Payroll, Compliance & Workforce Management in Uganda

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Uganda at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Uganda
Work Permits & Visas

Foreign employees must secure both a work permit and entry visa before starting employment in Uganda. The most common permits include:

  • Class G1: For employees of NGOs and private firms
  • Class G2: For company directors and business owners

Applications require a valid passport, offer letter, CV, police clearance, academic qualifications, company registration documents, and justification for hiring a non-Ugandan. Permits are typically valid for 1–2 years and must be renewed before expiry. Visa-on-arrival may apply in some cases, but work cannot begin until the permit is approved.

Payroll

Ugandan payroll is typically monthly and includes both income tax and statutory deductions.

Key components include:

  • Pay-As-You-Earn (PAYE): Withheld from gross salary based on progressive tax rates
  • NSSF Contributions:
    • Employer: 10%
    • Employee: 5%
    Local Service Tax (LST): Applied annually based on salary band
  • Payroll Requirements: Payslips must be provided, and accurate records must be kept. Payroll returns and payments for PAYE and NSSF must be filed monthly.
Employment Contracts

Written employment contracts are required and must specify duration, responsibilities, probation terms, benefits, and termination conditions.

  • Probation: Up to 6 months
  • Minimum Wage: UGX 130,000/month (sectoral wages may apply)
  • Standard Working Hours: 48 hours/week
  • Overtime: 150% pay for extra hours; 200% for public holidays
  • Termination Notice: Depends on contract and duration of service
  • Severance Pay: May apply after one year of service in certain termination scenarios
Employee Benefits

Employees are entitled to statutory benefits under Uganda’s labor laws.

  • Sick Leave: 1 month per year (full pay for 1st month)
  • Maternity Leave: 60 working days (paid)
  • Paternity Leave: 4 working days
  • Annual Leave: 21 days per year
  • NSSF Benefits: Retirement, disability, survivor’s pension
  • Private Benefits: Optional, but many employers offer private health insurance and bonuses
Tax Overview
  • Tax Year: January to December
  • Residency Rules: Individuals resident for 183+ days are taxed on worldwide income; non-residents are taxed only on Uganda-sourced income
  • PAYE: Covers employment income and must be filed monthly
  • Withholding Tax: Applies to non-resident service providers, directors’ fees, etc.
  • Local Service Tax (LST): Deducted based on salary bands and remitted to local authorities annually
Personal Income Tax
Annual Taxable Income (UGX) Tax Rate
0 – 2,820,0000%
2,820,001 – 4,020,00010%
4,020,001 – 4,920,00020%
4,920,001 – 120,000,00030%
Over 120,000,00030% + 10% surtax on excess

Full Country Guide

How We Help You with Payroll & Compliance in Ghana

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Uganda

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Why Global Companies Trust Us for Uganda Payroll

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With over 30 years of experience managing payroll and compliance across continents, we’re a trusted partner to enterprises in

Uganda

and beyond.

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Support

Experts with deep local knowledge guide you through every step—onboarding, payroll, compliance—ensuring smooth operations in

Uganda
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Trust

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Scalable

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Compliance

Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

Uganda

's laws

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Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

Uganda