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POPULATION

50m

CURRENCY

USh (UGX)

CAPITAL CITY

Kampala

Overview

Uganda, officially the Republic of Uganda, is a landlocked country in East Africa. Known for its diverse culture, stunning landscapes, and rich history, Uganda is a popular destination for tourism and cultural exploration. From the bustling streets of Kampala to the serene landscapes of the Ugandan savanna, Uganda offers a wealth of cultural and natural attractions.

Uganda's economy is diverse, with key sectors including manufacturing, services, and agriculture. The country is a major exporter of goods and a popular tourist destination, attracting visitors from around the world with its beautiful cities, historic sites, and world-renowned cuisine.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

Uganda's labor law generally allows the use of both oral and written contracts. However, a contract of service made with an employee who cannot read or understand the language in which the contract is written must be attested to by a labor officer or magistrate.

Additionally, a written statement of particulars must be provided to the employee within 12 weeks of the employment commencement. The written statement must at least include the following information:

  • Full names and addresses of the contracting parties
  • Employment start date
  • Workplace
  • Job title
  • Rate of overtime pay
  • Wages including payment intervals and other deductions
  • Employee's normal work hours and the shifts or days of the week during which such work is to be performed
  • The number of days for the annual leave and wages during the period
  • Terms relating to incapacity for work due to sickness or injury
  • Length of notice and sick pay.

Employers are required to provide the above information in a language that the employee can easily understand.

Oral Agreements

According to Uganda’s Employment Act, a service contract or employment contract may generally be made orally or in writing. The Act's provisions apply equally to oral and written contracts.

Additionally, a written statement of particulars must be provided to the employee within 12 weeks of employment commencement.

Implied Agreements

Uganda's labor law offers no provisions or guidance on implied contracts. The industry's best practice is to be cautious of implied contracts by frequently utilizing or adapting written agreements.

Working Hours

Per Uganda's Employment Act, the maximum working hours for employees are generally 48 hours per week and 8 hours per day. However, an employee and employer may agree in advance to increase the maximum working hours per week to more than 48 hours. In that case, hours of work shall not exceed 10 hours per day or 56 hours per week.

Even then, it is permissible to employ shift workers for more than 10 hours in any one day or 48 hours in any 1 week (without paying overtime) as long as the average number of hours over a period of three weeks does not exceed 10 hours per day and 56 hours per week.

In any organization where the maximum working hours are at least 8 hours per day, a 30-minute break must be granted to employees.

After consultation with the Labor Advisory Board, the Minister may regulate the maximum number of hours per week (including overtime work) that may be worked in any industry or occupation. By order, the minister may also provide for temporary exceptions in extraordinary situations where the public interest requires.

Public Holidays

January 1 (New Year’s Day), Jan 26 (Liberation Day), Date variable (Good Friday and Easter Monday), March 8 (Women’s Day), May 1 (Labor Day), June 3 (Martyr’s Day), June 9 (National Heroes Day), Date variable (Eid al-Fitr, End of Ramadan), October 9 (Independence Day), Date variable (Eid al-Adha, Feast of the Sacrifice), December 25 (Christmas Day), December 26 (Boxing Day). Other Holidays, January 26 (NRM Liberation Day), February 16 (Archbishop Janan Luwum Day).

Probationary Period

Per Uganda's Employment Act, the maximum length of a probationary period is 6 months. However, the probationary period may be extended for a further period of not more than 6 additional months with the employee's agreement.

An employer may not place the same employee under probation twice. A probationary contract may be terminated by either party after giving at least a 14-day notice or by the employer after paying 7 days' wages in lieu of notice.

Employment Termination/Severance

Notice Period

Per Uganda's Employment Act, before deciding to dismiss an employee on the grounds of misconduct or poor performance, an employer must explain the reason for dismissal to the employee. In addition, the employee is entitled to have another person of their choice present during this conversation. Employers who fail to comply with this procedure are liable to pay the employee a sum equivalent to 4 weeks of net pay.

The statutory minimum notice period in Uganda is established according to the employee's length of service:

  • At least 2 weeks, for a period of service of more than six months but less than 1 year
  • At least 1 month, for a period of service of more than 12 months but less than 5 years
  • At least 2 months, for a period of service of more than five years but less than 10 years
  • At least 3 months, for a period of service of 10 years or more

The notice must be in writing and in a form and language that the employee can reasonably be expected to understand. Employees may accept payment in lieu of notice. When the employee's pay period is longer than the period of notice to which the employee would be entitled, the employee is entitled to notice equivalent to that pay period.

Severance Benefits

An employer must pay a severance allowance if an employee has been in continuous service with the employer for a period of 6 months or more and where any of the following conditions apply:

  • The employer unfairly dismisses the employee
  • The employee dies in their employer's service (other than a death caused by the employee's own serious and willful misconduct).
  • The employee terminates their contract because of a physical incapacity (not brought about by their own serious and willful misconduct)
  • A labor officer terminates the contract following the inability or refusal of the employer to pay wages

Payment of a severance allowance is not required in the following circumstances:

  • The employee is summarily dismissed with justification
  • The employee is dismissed by the employer and unreasonably refuses to accept an offer of re-employment by the employer at the same workplace and under terms and a wage rate no less favorable than they had when employed immediately before dismissal
  • The employee abandons their employment or absconds from their place of work without leave for a period of more than 3 days without an explanation being provided to the employer

A severance allowance is not required upon the termination of a probationary contract. The amount of severance pay is to be negotiated between the employer and the employee or union representing the employee.

Compensation

Minimum Wage

In Uganda, the statutory minimum wage is fixed by a Wages Regulation Order. The minimum wage was last updated in 1984 and set at UGX 6,000 (Ugandan shilling) per month. It has not been revised since.

Uganda's Parliament passed a minimum wage bill in February 2019, but President Yoweri Museveni failed to sign it into law.

Uganda's Employment Act stipulates that in the absence of a written agreement, employees engaged to work for one day must be paid at the end of the day. Similarly, those paid by the hour or week must receive their wages at the end of that hour and week, respectively. Employees paid monthly are to be paid fortnightly or monthly, and those paid by the piece of work must be paid at intervals of not more than 1 fortnight. In case of contract termination, the employee is to receive wages and any accrued benefits or other remuneration within 7 days of the contract's termination date.

Overtime, Holiday & Vacation Pay

Per Uganda's Employment Act, the maximum working hours for employees are generally 48 hours per week and 8 hours per day. However, an employee and employer may agree in advance to increase the maximum working hours per week to more than 48 hours. In that case, hours of work shall not exceed 10 hours per day or 56 hours per week.

Even then, it is permissible to employ shift workers in excess of 10 hours in 1 day or 48 hours in any 1 week (without paying overtime), as long as the average number of hours over a 3 week period does not exceed 10 hours per day and 56 hours per week.

Generally, where hours in excess of 8 per day or 48 per week are worked, they shall, in the absence of a written agreement to the contrary, be paid at a rate of 150% of the normal hourly rate if the overtime is on normal working days, and at 200% the normal hourly rate if the overtime is worked on gazetted public holidays.

Employees are entitled to their normal wage while on annual leave.

Immigration & Visas

Visas

There are 4 types of Ugandan visas:

  • Tourist single - granted to those who want to enter the country once during the 3-month validity period. The consular fee for the tourist single visa is USD 100 (U.S. dollars) for 2-day processing or USD 130 for 1-2 day processing.
  • Tourist multiple - granted to those who wish to enter Uganda more than once during the validity period. A multiple visa can be valid for either 6 months or 1 year upon arrival. The consular fees associated with this type of visa are USD 100 (2-day processing) and USD 120 (1-2 day processing).
  • Business single - granted to those who wish to enter Uganda for business purposes. This only allows 1 entry during the 3-month validity period. The consular fees for this visa type are either USD 100 (2-day processing) or USD 130 (1-2 day processing).
  • Business multiple - granted to individuals seeking to enter Uganda more than once during the allowed validity period. The consular fees for this type of visa are USD 100 (2-day processing) and USD 130 (1-2 days processing).

Tourist and business single visas are only valid up to 3 months upon arrival. Multiple entry visas may be valid for either 6 months or 1 year upon arrival.

Work Permits

Uganda issues the following work permits:

  • Class A (Government & diplomatic service)
  • Class A2 (Government contractors)
  • Class B (Investment in agriculture)
  • Class C (Mining)
  • Class D (Business and trade)
  • Class E (Manufacturers)
  • Class F (Professionals)
  • Class G1 (Volunteers, NGO workers, And missionaries)
  • Class G2 (Employees)

Uganda Work Permit Class G

The Uganda Work Permit Class G is for employees who intend to work in Uganda. The work can be either on a paid or unpaid basis. The work permit is issued by the Department of Immigration in cases where a foreigner has provided adequate evidence to the immigration board that they have been offered and have accepted an offer of employment with a specific company or institution operating in Uganda.

There are two classes of Ugandan Work Permit Class G:

  • Work permit Class G1 – Volunteers, NGO workers, missionaries
  • Work permit Class G2 – Employees

Population 50m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

27.4%

Urban Population

9%

Internet access

72.8%

Banking access

76%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

In Uganda, all employees who have performed continuous service for their employer for a minimum period of 6 months and those who normally work under a contract of service for 16 hours a week or more are entitled to annual leave.

Per Uganda's Employment Act, an employee is entitled to 21 annual paid leave days each year at the rate of 7 days for each continuous 4-month period of service.

Employees can take their annual leave at any time during a particular calendar year, subject to any prior agreement they have made with their employer. The 21 days of leave only includes working days. Public holidays are also not counted as leave days.

If an employee gets sick during annual leave, it will still be counted as part of annual leave and not sick leave.

Annual leave days cannot be carried forward into another calendar year unless the employee and employer mutually agree to do so.

Sick Leave

Per Uganda's Employment Act, an employee who has completed at least one month of continuous service (and at least 16 hours per week) with an employer and is incapable of work because of sickness or injury is entitled to sick pay as follows:

  • For the first month's absence from work, the employee is entitled to full wages and all other benefits stipulated in the service contract.
  • If the sickness continues after the first month, the employer is entitled to terminate the service contract upon compliance with all terms within it.

The employer bears the full cost of sick leave.

For the employee to be entitled to sick pay, they must notify (or cause to be notified) the employer of their absence and the reason for it as soon as is reasonably practicable. If requested by their employer, the employee must also produce a written certificate signed by a qualified medical practitioner certifying the employee's incapacity for work and the duration of the incapacity.

Maternity Leave

In Uganda, female employees are entitled to 60 working days of fully paid maternity leave, of which at least 4 weeks must follow childbirth or miscarriage. The employer is responsible for paying 100% of the employee's earnings during maternity leave.

A female employee who becomes pregnant has the right to return to the job she held immediately before her maternity leave or to a reasonably suitable alternative job on terms and conditions equally favorable to those she would have received had she not been absent on maternity leave.

In the event of sickness arising out of pregnancy or confinement that affects either the mother or the baby and makes the mother's return to work inadvisable, the right to return must be available within 8 weeks after the date of childbirth or miscarriage.

Paternity Leave

In Uganda, male employees are entitled to a period of 4 working days of paternity leave per year. The leave must be taken immediately after the wife's delivery or miscarriage. During this leave, the male employee is entitled to his regular wages, to be paid by the employer.

After his paternity leave, a male employee has the right to return to the job which he held immediately before the leave.

Social Security

Pension

Uganda's National Social Security Fund Act provides old-age benefits to employees who have attained 55 years of age. As of January 4, 2022, participants of the country's pension program who are 45 years or older and have at least 10 years of contribution are eligible to withdraw up to 20% of their account balances prior to the normal retirement age of 55. Previously, early withdrawals were only allowed for participants at least 50 years of age, but the Ugandan president approved this change to provide relief for those impacted by COVID-19.

Persons who work in firms with five or more employees, including temporary employees, are covered under the above provision. Voluntary coverage is also available.

Insured employees must contribute 5% of gross monthly earnings. The voluntarily insured and self-employed must contribute at least 7.5% of gross monthly earnings. Employers must contribute 10% of gross monthly payroll.

Dependents/Survivors Benefits

Uganda's National Social Security Fund Act provides for survivors benefits to dependents, including the surviving spouse, dependent children under 18 years of age or who are disabled, parents, siblings, grandparents or next-of-kin.

A total lump sum of employee and employer contributions, plus interest, is paid to the dependents as a benefit if an insured worker dies before retirement.

In the case of an employee's death due to work-related accidents or diseases, the employer pays compensation to survivors equal to 60 months' earnings. If the deceased employee has already been compensated for the injury while alive, the employer-paid benefit is reduced by 50%.

Invalidity Benefits

Uganda's National Social Security Fund Act provides for invalidity benefits under the following circumstances:

  • Individuals are permanently disabled for any work that they were able to perform before the disability began
  • Individuals have permanent partial invalidity that prevents them from earning a reasonable living

A lump sum of total employer and employee contributions plus interest is paid in the case of permanent disability.

In case of disability due to work-related accidents or diseases, it is the employer's responsibility to pay compensation to employees. If the insured has a total permanent disability, a lump sum of up to 60 months of earnings is paid. In the case of permanent partial disability, a percentage of the full benefit is issued according to the assessed degree of disability. In case of temporary disability, a lump sum or periodic payments are granted up to a maximum of 96 months.

Both employees and employers contribute to the social security fund.

Minimum Age

According to Uganda's Employment Act, a minor under 14 years of age may not be employed except in light work that does not affect the minor's education and that takes place under the supervision of an adult over 18 years of age. A minor under the age of 12 years may not be employed in any undertaking.

Light work must be work that is not considered harmful to a child's health or development, not prejudicial to a minor's attendance at school or participation in vocational training, and that does not exceed 14 hours per week. A child aged between 15 and 18 who has completed their education or does not attend school may work up to 7 hours a day but not exceed 35 hours per week.

A minor must undergo a medical examination before engaging in any job but also every six months thereafter. Before hiring a minor between 15 to 17 years of age, authorization from the Commissioner is obligatory. Before authorization, the Commissioner will verify the minor's age, medical certificate, parental permission, prior instruction and training in the job, availability, and use of protective clothing. Employers must also maintain a register as prescribed in Schedule Five of the employment regulations.

According to Uganda's labor law, the minimum age for hazardous work is 18 years. A minor under the age of 18 years may not be employed to do work that is injurious, dangerous, or hazardous. However, a minor between the ages of 12 and 17 engaged in educational training or apprenticeship programs might be allowed to perform hazardous worked if approved by the Commissioner.

Overtime work is prohibited for minors. A minor may not be employed at night between the hours of 7:00 PM and 7:00 AM.

Unemployment 2.9%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

80.9%

Labor force population share

48.3%

Female share of labor force

49%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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