HR Software for Uganda

Leave Policy

Maternity Leave

Pregnant employees are entitled to 60 working days of paid leave. 28 days must be taken after the birth of the child. The remaining days can be divided into two periods. During this period, the employee receives 100% of her salary and the employer is responsible for payment.

The employee can extend his sick leave by a further 4 weeks with 100% continued payment of wages.

You can use the leave module in IceHrm to manage maternity leave in Uganda.

Paternity Leave

Employees whose official spouse has given birth are entitled to 4 days of paid paternity leave. The employee receives 100% of his salary during this period and the employer is responsible for payment.

Parental Leave

Parental leave is not regulated by law in Uganda. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Employees are entitled to up to 2 months of paid sick leave per year. During the first month, the employee receives his full salary from his employer. The second month is unpaid leave.

Pay & Tax

Minimum Wage Requirements

The minimum wage is 6,000 Ugandan shillings per month.

Individual Income Tax

Individual income tax ranges from 0% to 30%. Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: B. the household status and the number of children.

Gross Annual Income	Tax Rate (%)
Up to UGX 235,000	0%
UGX 235,000 to 335,000	10%
UGX 335,000 to UGX 410,000	20%
Over UGX 410,000	30%

Payroll Cost

The cost to the employer is generally estimated at 11.50% of the employee’s salary.

National Social Security Fund 10.00%.
Workers’ compensation insurance – 1.50%

These costs are estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday. Pay for overtime is mandatory and can be compensated with salary. Hours outside of standard working hours are considered overtime. Employees receive 150% of their hourly rate for overtime.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Layoffs in Uganda can be complex. In Uganda, employers cannot terminate at will and the termination must be for a valid reason. Proper terminations include:

Voluntary by the employee
By mutual agreement
Due to the expiry of the contract
Unilaterally by the employer due to:
- Probation period
- Objective reasons
- Dismissal for disciplinary reasons
- Performance due to unsuitability for the position

Notice Period

The notice period is at least 2 weeks and increases depending on the length of employment.

Two weeks’ notice if you have been with the company for more than six months but less than a year.
One month’s notice period if you have been with the company for more than 12 months but less than five years.
Two months’ notice if you have been with the company for more than five years but less than ten years.
Three months’ notice if you have been with the company for 10 years or more.

Severance for Employees

In Uganda, all employees who are dismissed for the following reasons are entitled to severance pay unless the dismissal is due to gross misconduct or they have worked for less than six months.

The employee is unfairly dismissed by the employer.
The employee dies in the service of his employer, unless the death is due to serious and intentional misconduct on the part of the employee.
The employee terminates his contract due to physical incapacity not attributable to his own serious and willful misconduct.
The contract is terminated by the death or insolvency of the employer.
The contract is terminated by a labor official due to the employer’s inability or refusal to pay wages in accordance with Section 31 of the Labor Law.
Other circumstances as the Minister may specify by regulation.

Severance pay is negotiated between the employee and the employer, but the standard is 1 month for each year of service. In the absence of such a negotiated agreement, severance pay may be determined by a labor official.

To protect you from unforeseen financial risks arising from the termination of an employment relationship, IceHrm applies a severance pay provision to all employment contracts in this country. IceHrm has extensive expertise in managing litigation around the world and our settlement reserve calculation is based on prevailing common law or statutory claims and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 21 days of paid time off (PTO) per year. For every 4 consecutive months that an employee works, 7 days are credited. Employees are eligible for PTO after 4 months of work.

Public Holidays

There are 13 national holidays celebrated in Uganda. National holidays include:

New Year’s Day
NRM Liberation Day
International Women’s Day
Good Friday
Easter Monday
Labor Day
Martyr’s day
National Heroes’ Day
Eid al- Fitr
Independence Day
Eid al-Aduha
Christmas Day
Boxing Day

Onboarding

Onboarding takes 2 working days after the customer signs the SOW.

Additional Info

Employment Contract Details

The contracts must be written in English. They must be in writing and signed by both parties.

A contract must contain:

Surname
Start date
Length of employment
Job descrption
Conditions for Termination

Probation Period

Probationary periods are not mandatory. The maximum duration of the probationary period is 6 months.