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hire in Uganda

Uganda PEO

SALARY PAYMENT IN Ugandan Shilling

CONTRACT LANGUAGE English 

PAYROLL TAX 10%

PAYROLL CYCLE Monthly or bi-weekly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

Hire in Uganda

Horizons enables any business, anywhere in the world, to hire employees in Uganda, quickly, and in full compliance with local laws and regulations. The Horizons Uganda PEO solution enables your company to hire a , without the need for a local entity or subsidiary.

When you engage a Uganda PEO, you save your business time and money, and guarantee compliance.

Facts & Stats

PEO Platform Hire in Uganda , and pay employees through our platform or app. PEO Cost Our Uganda PEO solution is the most affordable on the market. Time-to-hire Fast Uganda onboarding, hire in as little as 24 hours.
Contracts We draft compliant Uganda labor contracts. Local benefits We manage all Uganda mandatory and optional benefits for your Uganda employees. 180+ Countries It doesn’t stop with Uganda — we hire employees globally.
stay compliant with Uganda labor laws

Uganda is a small country in Southeastern Africa primarily focused on the services industry, with notable economic activity related to agriculture products (especially coffee), oil, and precious metals; growth is expected in energy exports in the coming years.

With the youngest median age in the world at age 15, Uganda’s workforce is young, with most service-industry professionals living in major cities and most agriculture workers working in rural areas. Uganda’s official language is English, largely influenced by the country being administered by the United Kingdom until 1962.

Uganda maintains relatively strong economic ties with Kenya, which it relies on for port access to the Indian Ocean via Mombasa.

For companies looking to access the East African market, and especially those who want to hire English-speaking talent, Uganda is a good option.

What is a Uganda PEO?

A Uganda professional employer organization, or Uganda PEO, is an HR company that helps companies employ and pay workers in Uganda.

The Uganda PEO hires workers on behalf of companies, taking on the responsibilities of payroll management, ensuring all social and tax contributions are completed, and confirming that all HR and employment law formalities are adhered to.

While companies use a Uganda PEO for a variety of reasons, some of the top reasons for engaging a Uganda PEO include:

  • Ensuring labor compliance is maintained
  • To manage payroll and submit tax withholdings and declarations correctly
  • As a temporary step for international companies waiting to open a Uganda legal entity or subsidiary
  • To maximize labor force flexibility
  • To ‘upgrade’ contractors/freelancers to full-time employees
  • To reduce the risks of disguised employment or legal action from workers.

What are the benefits of a Uganda PEO?

Partnering with a Uganda PEO enables companies to access Uganda talent quickly, and at limited risk. For international companies who are interested to gain a foothold on the continent, or those who are interested in trying the market in Uganda or the surrounding region, engaging a PEO might be the best option. The benefits of using a Uganda PEO include:

  • Cost savings – up to 85% savings compared to opening a subsidiary in Uganda
  • Speed of hiring – Hire your employee in 24 hours, instead of the months it may take to open a subsidiary in Uganda
  • Guaranteed labor law compliance – as the Uganda PEO becomes the legal employer, they care of all HR and payroll formalities
  • Access to global benefits – a global PEO company with broad reach maybe able to provide unbeatable benefits to a Uganda-based team
  • Data security – a secure Uganda PEO platform can help to manage leave, expenses, and keep data safe in Uganda.

How does a Uganda PEO help businesses hire employees?

By engaging a Uganda PEO, the PEO becomes the legal employer for employees based in Uganda.

The client company maintains full control over the employees’ day-to-day activities, while the Uganda PEO takes on responsibility for formal back-office functions in Uganda.

The Uganda PEO drafts the employment contract, calculates & distributes payroll, makes all obligatory tax & social security payments, and manages all ongoing local HR duties for the duration of the employment lifecycle. The client company focuses on core business, while the Uganda PEO manages the compliance side of things.

You can see a full breakdown of how it works here.

Benefits administration in Uganda

When you engage a Uganda PEO, the PEO will administer all benefits as requited by Ugandan law. This includes all public holidays, parental leave, healthcare, pensions, and more.

A Uganda PEO may also offer supplementary benefits, including global healthcare plan options. Many modern PEOs operate through a user-friendly cloud platform: The Horizons PEO platform will inform you of public holidays, and provide access to a simple yet effective system for leave requests & approvals.

Leave management and national holidays in Uganda

A Uganda PEO can administer benefits for all your staff in country. This includes leave management, pensions, healthcare and various social contributions.

Paid annual leave in Uganda is at least 21 consecutive days. In addition, employees are entitle to the following paid public holidays:

Uganda has a range of national public holidays that are celebrated annually. In 2023 these holidays are:

DateHoliday name
1 Jan SundayNew Year’s Day
26 Jan ThursdayLiberation Day
16 Feb ThursdayRemembrance of Archbishop Janani Luwum
8 Mar WednesdayInternational Women’s Day
7 Apr FridayGood Friday
10 Apr MondayEaster Monday
22 Apr Saturday Eid al-Fitr (Tentative Date)
1 May MondayLabour Day
3 Jun SaturdayMartyr’s Day
9 Jun FridayNational Heroes Day
29 Jun Thursday Eid al-Adha (Tentative Date)
9 Oct Monday Independence Day
25 Dec MondayChristmas Day
26 Dec TuesdayBoxing Day

Note also that there are some regional or local holidays that are only celebrated in Uganda.

Paternity and Maternity leave in Uganda

Mothers are entitled to a total maternity leave allowance of 60 days, with 4 weeks of that time to be used after the pregnancy.

Fathers are entitled to 4 fully paid days of paternity leave per year, to be taken after the birth of the child or miscarriage of a wife.

Employer pension contributions in Uganda

Uganda has a multi-tier pension system. The two most common tiers are the public system (covering national and district government employees) and the National Social Security Fund (or NSSF, which covers employees of companies with more than 5 employees).

Still, less than 5% of Ugandans are currently covered by national pension plans. This is because until recently, pensions were unregulated in Uganda. In itself, this does not necessarily spell crisis for Uganda since the demographics of the country allow the government some time to build and implement a pension system in the coming years. Those doing business in Uganda should expect an increase in pension costs in the coming years.

Income tax withholding in Uganda

Uganda income tax is based on a progressive system and ranges from 10% – 40%. Uganda uses the Uganda Shilling (UGX) as its currency.

  • Up to UGX 282,000: 0%
  • UGX 2,820,000-4,020,000: 10%
  • UGX 4,020,001-4,920,000: 20%
  • UGX 4,920,001-120,000,000: 30%
  • UGX 120,000,001+ : 40%

Payroll tax in Uganda

As mentioned, Uganda has a national social security fund which covers pension contributions and other basic entitlements. This is the equivalent of what is known as ‘payroll tax’ in countries like the United States.

Individuals are required to contribute 5% gross earnings to this fund.

Employers are required to make contributions of 10 percent, meaning a total contribution of 15 percent for payroll taxes.

Healthcare and health insurance in Uganda

Uganda’s healthcare system has both publicly funded (both national & district based) and privately funded facilities. While the Ugandan government regulates the operation of all healthcare facilities in the country, private business invests in and run hospitals, clinics, and pharmacies.

There is no national health insurance scheme present in Uganda, and private health coverage is not common. Private health coverage includes both traditional health coverage schemes as well as health insurance plans offered by hospitals directly.

With the Horizons Uganda PEO solution, you would have an option to purchase Horizons Health on behalf of your employee. Horizons Health is a global health insurance plan that would cover you employee in Uganda and would provide a valuable benefit for you to attract and retain top talent.

Hire through a Uganda PEO

Due to the young population, key location in Eastern Africa, and English-speaking workforce, many companies are considering expanding to Uganda to gain a foothold on the African continent. Hiring with a PEO offers a great deal of protection from risks related to opening an entity and hiring in Uganda, while providing the maximum amount of employer flexibility and speed of hiring.

Hire in Uganda in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Uganda Professional Employer Organization (Uganda PEO) offers a full employment solution in Africa. It ensures that your employees are hired and paid in full compliance with applicable labor and tax laws. It may also provide you with associated employment and HR services, such as visa support and recruitment.

A Uganda Employer of Record (Uganda EOR) means a company that provides compliant legal hiring in Uganda.

Some companies, like Horizons, are both a Uganda PEO and a Uganda EOR.

A Uganda PEO is a good option for international businesses that seek to hire in Uganda and need to ensure that their hiring is in full compliance with local laws. It saves time, and money, and avoids the compliance risks of setting up a local entity.