Uganda
Remote makes employment in Uganda easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence. Note that we can currently employ contractors in Uganda but our employer of record services are not yet live.
- Capital city
Kampala
- Currency
Ugandan shilling (Sh, UGX)
- Languages
English and Swahili
- Population size
42,729,036
Facts & Stats
- Capital city
Kampala
- Currency
Ugandan shilling (Sh, UGX)
- Languages
English and Swahili
- Population size
42,729,036
- Ease of doing business
Medium
- Cost of living index
N/A
- Payroll frequency
Bi-monthly, monthly
- VAT - standard rate
18%
- GDP - real growth rate
2.9% (2020)
Uganda is famous for its cultural diversity, inredible wildlife, mineral wealth, and rich biodiversity. Uganda is a landlocked country in the East of Africa and it is home to the world’s largest primate population, 1,066 bird species, and massive wildlife reserves that draw over 1.25 million visitors to the pearl of Africa every year.
The country’s capital city of Kampala is a burgeoning African metropolis with an array of modern skyscrapers contrasting with areas of more traditional huts and high-density village life. The capital is a feast for the eyes with a chaotic mix of intense traffic and signs of both extreme wealth and generational poverty, which is broadly reflective of the country’s journey since gaining independence from the UK in 1962.
Uganda has one of the youngest populations in the world and this represents an opportunity and a challenge. A significant proportion of Ugandans from the ages of 18-30 are unemployed, but global companies can find a groundswell of qualified talent, many with experience working for multinational firms in the resources industry. There is also a strong entrepreneurial spirit developing in Uganda led by the highly ambitious younger generation.
Grow your team in Uganda with Remote
You can pay contractors now in Uganda with Remote in some currencies (talk to an expert now for full details).
Note that we are busy building our own entity in Uganda to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.
To employ in Uganda, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Uganda can get complicated fast, especially without localized expertise.
If you're looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.
In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
Risks of misclassification
Uganda, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Uganda may lead to fines and penalties for the offending company.
Employing in Uganda
Provisions for employee protections and workers’ rights are spelled out in Uganda’s 1995 Constitution and the Employmnet Act of 2006, both of which guarantee equal work for equal pay and protections against discrimination based on age, religion, gender expression, and race.
Common questions that could come up during the hiring process will likely cover topics like minimum wage, overtime rates, and guaranteed paid time off.
Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Uganda.
Competitive benefits package in Uganda
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
We are still busy building our own entity in Uganda, but our benefits packages for all countries are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Uganda
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Uganda.
10%
Social security
Types of Leave
Workers who’re engaged for at least 16 hours per week are entitled to 21 workdays of paid leave every year, provided they’ve been employed for at least 12 years. Employees who meet these conditions can take seven days off for every four months of continuous employment.
Employment termination
Termination process
Ugandan labor law demands that employees are only terminated for cause, otherwise they are entitled to four weeks’ wages.
Notice period
Ugandan employees are required to a period of advance notice before they can be let go, depending on their tenure with their employer:
Less than six months: no advance notice
Six months to one year: two weeks notice
One to five years: one month’s notice
Five to ten years: two months notice
10+ years of employment: three months of notice
Severance pay
Ugandan employment law provides a wide range of situations where an employee would be entitled to severance pay, including:
Unfair dismissal from work
Termination due to physical incapacity that wasn’t caused by an employee’s misconduct
Termination due to the death or insolvency of the employer
Termination by a labor officer, due to the inability or refusal of the employer to pay any wages due
Probation periods
Limited to six months, although it can be extended for another six months with an employee’s consent.