UGANDA
Payroll Outsourcing
Pay Your Talents in Uganda Compliantly.
Pay Your Team in Uganda. On Time. Everytime.
Ensure your team in Uganda is paid accurately and on time with our Payroll Outsourcing services.
Gain expert support to keep your operations fully compliant with Uganda's Labour Code and tax regulations.
- Pay your team in Uganda - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Uganda.
Flexible Payroll Solutions in Uganda
Payroll solutions that adapt to your needs whether you are established or growing in Uganda.
Uganda Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Uganda and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes - manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Uganda
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Uganda legislation at all times.
Uganda Country Overview
Geographic location: Uganda is located in eastern Africa, west of Kenya, south of South Sudan, east of the Democratic Republic of the Congo, and north of Rwanda and Tanzania.
Population: Uganda is the world's second most populous landlocked country after Ethiopia.
Economy: This low-income country relies heavily on oil export and food products such as coffee, maize, tea, tobacco, sugar, and cocoa beans. Uganda is well known for being rich in natural resources like crude oil and natural gas.
Payroll in Uganda - What You Should Know
Country Profile - Uganda
Population: 51,384,894
Gross Domestic Product (GDP): $64.99 billion
GDP Growth: 6.4%
Inflation, consumer prices: 3.3%
Foreign Direct Investment (% of GDP): ~4.4%
Unemployment Rate: 2.7%
Capital: Kampala
Currency: Ugandan shilling (UGX)
Languages: English and Swahili (official), Luganda, Runyankole, Runyoro, Ateso, Luo, and many other indigenous languages
Social Security Contributions
Employer Contribution
- 10% of the employee's gross salary must be contributed to the National Social Security Fund (NSSF).
- Employers are responsible for Pay As You Earn (PAYE) withholding and remittance obligations.
- Workers' compensation insurance is generally funded by the employer.
Employee Contribution
- 5% of the employee's gross salary must be contributed to the National Social Security Fund (NSSF).
Consumption Taxes
- Value-added tax (VAT)
VAT: The standard VAT rate is 18%.
Working Hours and Employee Benefits
Paid Time-Off
Employees are generally entitled to 21 days of paid annual leave.
Sick Leave
According to the Employment Act 2006, an employee is entitled to paid sick leave on completion of one month of service with the employer.
Should the worker be incapable of work because of sickness or injury, they are entitled to paid sick leave paid full for the first month of illness.
Maternity Leave
In Uganda, women are entitled to a maximum of 60 days of maternity leave – 4 weeks must be taken in the postnatal period.
Paternity Leave
In Uganda, men are entitled to 4 days of paid paternity leave. They are still eligible in case of miscarriage of their wife.
Termination in Uganda
Notice periods in Uganda are as follows:
- For employees with more than 6 months but less than 1 year of service: 2 weeks
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- For employees with more than 12 months but less than 5 years of service: 1 month
- For employees with more than 5 years but less than 10 years of service: 2 months
- For employees with more than 10 years of service: 3 months
Severance Pay in Uganda
Under the Ugandan Labour Code, employees are generally entitled to severance pay. However, compensation needs to be negotiated between the employer and the worker.
An employee is entitled to severance pay after completing 6 continuous months of work under the same employer.
Public Holidays in Uganda
- New Year’s Day
- NRM Liberation Day
- Archbishop Janani Luwum Memorial Day
- International Women’s Day
- Good Friday
- Easter Monday
- Labor Day
- Eid al-Fitr
- Uganda Martyrs’ Day
- National Heroes’ Day (in Uganda)
- Father’s Day
- Eid al-Adha
- Independence Day of Uganda
- Christmas Day
- Boxing Day
While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.
Seeking a Reliable Payroll Partner in Uganda?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Uganda's labour Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Value of Payrolls Processed Annually
Payslips Issued Annually
Payrolls Process Annually
Trusted by Inspiring Changemakers
Africa HR Solutions is for us everything what we have hoped for. Customer- and people oriented, fast and always willing to think along and find the best possible solution. We get professional services and an exceptional single point of contact.
Africa HR Solutions has been a great partner to our organisation, allowing us to quickly expand and operate in new markets while they flag and support management of compliance and risk issues. We now use Africa HR for support in some capacity in 8 of our geographic locations.
We really valued how quickly Africa HR set up an operational platform for our programme in Tanzania. The team were responsive over Teams and email and provided clear guidance on local employment requirements, which helped us structure delivery quickly and with confidence.
Africa HR is responsive, proactive, and accommodating, even with the time difference. In fact, it works in my favour - they have time to handle tasks before I start my day. Our payroll, especially in Senegal, is complex, but their attention to detail and willingness to go the extra mile definitely stand out.
Africa HR has taken the stress out of compliance - we no longer have to worry about changing regulations. Their team is professional, knowledgeable, and always available. Payroll runs smoothly, which saves us valuable time and our staff appreciates being paid on time! Kudos to the team!
Simplify and manage your team's payroll in Uganda
Your payroll in Uganda is simplified with PAYE, NSSF compliance, and secure monthly salary payments.
Frequently Asked Questions
What is payroll outsourcing?
Payroll outsourcing is when a specialist partner manages salary calculations, tax deductions, and statutory filings on your behalf. This ensures employees are paid correctly and on time while keeping your business compliant with local laws.
How does tax outsourcing work?
Tax outsourcing covers the preparation, filing, and payment of employee and employer-related taxes. It reduces the risk of errors, missed deadlines, or penalties by ensuring all contributions are handled according to local regulations.
Why should I outsource payroll and tax in Africa?
Africa’s employment laws and tax frameworks differ from country to country. Outsourcing ensures compliance, saves administrative time, and avoids costly mistakes while giving you access to local expertise in multiple jurisdictions.
Can you manage payroll for both local and expatriate employees?
Yes. We manage payroll for both local hires and expatriates, including handling multi-currency payments, cross-border compliance, and special tax considerations.
How do you ensure compliance with local laws?
Our experts stay updated with labour codes, tax rates, and social contribution requirements in each country. We file directly with authorities, ensuring your business remains compliant at all times.