Employee Leasing in Uganda

• Outstaffing to Uganda through employee leasing allows companies to enjoy streamlined expenses and optimized resource allocation, as they do not have to handle recruitment, training, and payroll management.
• Employee leasing helps businesses unlock growth opportunities by entrusting administrative and legal functions to FMC Group, allowing them to focus on innovation and growth.
• Employee leasing gives companies direct access to the vast Ugandan talent pool to quickly acquire skilled professionals and ensure their project’s success.
• Businesses benefit from unparalleled workforce flexibility thanks to employee leasing, allowing them to adapt to dynamic market conditions.

• We meticulously match candidates to meet our clients’ precise requirements.
• We conduct rigorous interviews and recruit top-tier candidates for our clients.
• We handle all tax and social contribution obligations in accordance with Ugandan labor law.
• Our payroll management follows international standards.
• We take care of all expenses and allowances to ensure smooth operations.
• We monitor paid vacations and other employee benefits to ensure compliance and satisfaction.
• Upon request, we negotiate and implement private insurance packages for employees.
• We maintain open and regular communication with our clients.

• Uganda’s central location within East Africa positions it as a strategic hub for regional trade and investment. Its proximity to key markets such as Kenya, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo offers businesses easy access to a large consumer base of over 200 million people. Moreover, Uganda’s membership in the East African Community and the Common Market for Eastern and Southern Africa provides preferential access to these markets.
• Uganda has a young and rapidly growing population, with approximately 78% of its citizens below the age of 35. This demographic offers a large and dynamic labor force, driving consumer demand and innovation. The growing Ugandan middle class and the increasing urbanization rates also contribute to the rising demand for goods and services across various sectors, notably healthcare, education, and technology.
• The Ugandan government has implemented several reforms to improve the business environment and attract foreign investment. The Uganda Investment Authority and the Uganda Free Zones Authority provide several incentives for investors, including tax holidays and efficient administrative processes. Additionally, there are many ongoing projects to enhance infrastructure, such as road networks, energy supply, and telecommunications.
• Despite external challenges, Uganda has maintained relative macroeconomic stability over the years, with a moderate inflation rate (4.6% in 2023). The country’s GDP growth has consistently averaged around 5-6% per year, driven by agriculture, services, and construction. Thanks to its solid monetary policies and its efforts to diversify the economy, Uganda has a predictable economy and conducive business environment.
• You can read more about the advantages of the Ugandan market on the website of Uganda’s Investment Authority.

Minimum Wage and Payroll

• The minimum wage in Uganda is set at UGX 136,000 (EUR 33.6) per month.
• Salaries are usually paid either monthly or bi-weekly in Uganda.

Social Contributions and Taxes

Employer Contributions
National Social Security Fund	10%
Employee Contributions
National Social Security Fund	5%
Employee Income Tax
For Non-Residents
Up to UGX 335,000 (EUR 82.8) per month	10%
Between UGX 335,000 and UGX 410,000 (EUR 82.8 – EUR 101.3)	20%
Between UGX 410,000 and UGX 1,000,000 (EUR 101.3 – EUR 247.2)	30%
From UGX 1,000,000 (EUR 247.2)	40%
For Residents
Up to UGX 235,000 (EUR 58.1) per month	0%
Between UGX 235,000 and UGX 335,000 (EUR 58.1 – EUR 82.8)	10%
Between UGX 335,000 and UGX 410,000 (EUR 82.8 – EUR 101.3)	20%
Between UGX 410,000 and UGX 1,000,000 (EUR 101.3 – EUR 247.2)	30%
From UGX 1,000,000 (EUR 247.2)	40%

 

Working Hours and Overtime

• Working hours in Uganda cannot exceed 48 hours per week and 8 hours per day.
• Overtime work has to be paid at a minimum rate of 150% of the regular salary on regular days and 200% on public holidays.

Vacation Days

• Employees in Uganda are entitled to 21 days of paid leave per year, accumulated at a rate of 7 days for each 4 months of service.
• Uganda celebrates 14 public holidays:
  • New Year’s Day: January 1^st
  • NRM Liberation Day: January 26^th
  • Archbishop Janani Luwum Day: February 16^th
  • Women’s Day: March 8^th
  • Good Friday: Between March and April
  • Easter Monday: Between March and April
  • Labor Day: May 1^st
  • Uganda Martyrs’ Day: June 3^rd
  • National Heroes Day: June 9^th
  • Independence Day: October 9^th
  • Christmas Day: December 25^th
  • Boxing Day: December 26^th
  • Eid al-Fitr: Varies according to the Islamic calendar
  • Eid al-Adha: Varies according to the Islamic calendar

Parental Leave and Sick Leave

• Female employees in Uganda are entitled to 60 days of paid maternity leave, provided they present a 7-day notice before they leave. Maternity leave can be extended to 80 days in exceptional situations that require additional rest for the employee.
• New fathers are entitled to 4 days of fully paid paternity leave after the birth of their child.
• Employees in Uganda are entitled to 2 months of sick leave per year. The first month is fully paid by the employer, while the second month is unpaid.

Other Types of Paid Leave

• Employees have the right to take a 3-day paid leave per year in the case of a family emergency.
• Employees are entitled to 6 days of paid leave after the death of an immediate family member.

Further Useful Information

• You can consult the Ugandan employment regulations for more information on labor laws in Uganda.