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Africa

Uganda

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Employer of Record (EOR) in Uganda

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Uganda Introduction

Uganda is a landlocked country in east Africa, bordered by Kenya, South Sudan, the Democratic Republic of the Congo, Rwanda, and Tanzania. The country contains a large portion of Lake Victoria, and also lies within the Nile basin. While the official languages of Uganda are English and Swahili, Luganda (a Bantu language) is widely spoken across the Central and South Eastern regions of the country, along with other languages that are also spoken.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees in Uganda are entitled to 60 days of paid maternity leave, of which at least 8 days have to be taken after the child's birth. The full salary is paid out during this time by the employer.

Partners of employees who gave birth are entitled to 4 days of paternity leave, paid at 100% of the salary by the employer.

Sick Leave

Employees can receive sick leave for up to 2 months each year. The 1st month is paid at the full salary by the employer, and the 2nd is unpaid.

Paid Leave

Uganda has 13 national holidays, and employees are entitled to 21 days of paid time off each year (after working 4 months at their company).

Wage Requirements and Working Hours

The minimum wage is UGX 6,000 per month, and a standard workweek is 40 hours at 8 hours per day. Overtime work is usually paid at 150% of the regular rate.

Termination Process

Process

There is no at-will terminations in Uganda, and dismissals must be done for just cause such as resignation, misconduct, performance, or other work offenses.

Notice Period

The notice period for terminations is at least 2 weeks and increases based on the length of employment:

  • 6 months-1 year = 2 weeks of notice
  • 1-5 years = 1 month of notice
  • 5-10 years = 2 months of notice
  • 10+ years = 3 months of notice

Severance Pay

Employees who are terminated without just cause are entitled to severance pay. This amount is usually negotiated between the employee and the employer, with the standard payment being 1 month of pay for each year of service.

Additional Information

N/A

OVERVIEW
Language(s):
English, Swahili, Bantu, regional languages
Currency:
Ugandan Shilling (UGX)
Capital City:
Kampala
Population:
47.3 Million
Cost of Living Rank:
109th
VAT (Valued Added Tax):
18%
Employer TaxES
10%
(estimated)

★  10% - Social Security

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Uganda

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Uganda get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Uganda are paid on time in Ugandan Shilling (UGX). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Uganda, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.