Recent developments in Uganda
We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment landscape in Uganda.
Minimum wage framework (2026)
Uganda continues to operate without an enforceable national minimum wage. Although a historical statutory benchmark of UGX 130,000 per month exists in legislation, it has not been updated or implemented for decades and remains non-operative. In 2026, wages are therefore determined by market conditions, employer–employee negotiation, and sectoral standards. Discussions on potential wage reforms continue at policy level, but no binding changes have been adopted. Employers should ensure salaries remain competitive within industry norms and compliant with contractual and collective agreement obligations.
Remote and work-from-home arrangements (2026)
Ugandan employment law does not yet have a standalone remote work statute. Instead, remote and hybrid work arrangements continue to be governed by general provisions under the Employment Act and workplace policy frameworks. In 2026, employers and employees may mutually agree on remote work terms, including working hours, supervision, deliverables and communication practices. Clear written agreements remain best practice to ensure transparency and mitigate disputes, especially regarding overtime, productivity expectations and equipment use.
Maternity, paternity and parental leave entitlements (2026)
Maternity protections under the Employment Act remain unchanged for 2026. Female employees continue to be entitled to 60 working days of maternity leave, with full wages paid for at least the first 45 days. Paternity leave remains four working days for male employees. Although Uganda has explored broader parental leave reforms, no amendments have yet been enacted. Employers are encouraged to review internal policies to ensure they align with statutory entitlements and evolving best-practice standards in the region.
National Social Security Fund (NSSF) obligations (2026)
The expansion of NSSF membership introduced in previous years remains fully in force in 2026. All employers, regardless of size, are required to register and contribute to the National Social Security Fund for all eligible employees, including those in small enterprises and non-traditional sectors. Contribution rates remain split between the employer and employee, with employers bearing the higher share. Continuous enforcement efforts mean that employers must maintain accurate payroll records and ensure timely monthly remittances to avoid penalties.
Taxation and PAYE compliance updates (2026)
Uganda continues to refine its Pay-As-You-Earn (PAYE) and withholding tax systems. For 2026, the Uganda Revenue Authority (URA) has emphasized stricter compliance monitoring through digital tax administration tools, including the electronic invoicing and receipting system (EFRIS). While no structural changes have been made to the individual income tax brackets, employers must ensure the correct application of tax thresholds, deductions and statutory contributions through payroll. Ongoing digital oversight means that accurate, timely reporting is a critical compliance requirement.
