Global EOR Services in Uganda
Find, Hire & Pay Employees in Uganda
Global Employer of Record (EOR) services in Uganda offer a seamless solution for companies aiming to hire employees in the region without setting up a local legal entity. By managing compliance, payroll, taxation, and employee benefits in accordance with Uganda regulations, Global EOR services enable businesses to focus on growth while navigating the complexities of local labor laws with ease.
Why Use Global EOR Services in Uganda?
An Employer of Record (EOR) in Uganda enables foreign companies to hire employees locally without setting up a legal entity. The EOR:
Acts as the legal employer on behalf of the client
Prepares and executes contracts compliant with Ugandan labor law
Registers employees for statutory taxes and social security
Runs payroll in UGX and manages all withholdings
Administers statutory benefits (NSSF, PAYE, leave entitlements, etc.)
Manages compliant termination procedures and severance
Ensures adherence to Ugandan labor law and reporting obligations
🇺🇬 Uganda: Country Overview
Uganda, located in East Africa, is known for its rich natural resources, agricultural potential, and a youthful, fast-growing population. The economy is primarily driven by agriculture, services, construction, and increasingly, oil and gas as commercial production ramps up. Uganda has positioned itself as a regional trade and logistics hub, offering opportunities for businesses looking to access East and Central Africa.
Foreign investment is encouraged, especially in sectors like infrastructure, manufacturing, agriculture, IT, and energy.
Capital: Kampala
Currency: Ugandan Shilling (UGX)
Population: ~47 million
Official language: English (Swahili is also official; many local languages)
Main industries: Agriculture, construction, manufacturing, services, oil & gas (emerging), tourism
Main exports: Coffee, tea, fish, gold, maize, sugar
Main trading partners: Kenya, UAE, China, EU, DR Congo
Employment Laws and Policies
Uganda’s employment is governed mainly by:
Employment Act, 2006
Labour Unions Act, 2006
Occupational Safety and Health Act, 2006
National Social Security Fund Act (NSSF)
Income Tax Act (PAYE provisions)
📄 Employment Contracts
Must be in writing for contracts of service longer than 6 months.
Must specify: job title, duties, salary, working hours, leave entitlements, termination conditions.
Types:
Indefinite-term contract (most common)
Fixed-term contract (for specified period/projects)
🕰 Working Hours
Standard: 48 hours/week, typically 8 hours/day over 6 days
Overtime: Max 10 hours/week; paid at 1.5x (or 2x on public holidays/rest days)
🌴 Leave Entitlements
Annual leave: 21 working days (after 12 months of continuous service)
Sick leave: 1 month full pay + 1 month half pay (after 1 month of service)
Maternity leave: 60 working days (at full pay)
Paternity leave: 4 working days (full pay)
Public holidays: 12+ days (paid days off)
Payroll, Taxes & Contributions
Personal income tax (PAYE): Progressive up to 30% (on monthly income > UGX 10 million)
Employer contributions:
NSSF: 10% (employer share)
Employee contributions:
NSSF: 5%
Local service tax: May apply depending on location
Payroll must be processed in UGX, with timely filing and payment to Uganda Revenue Authority (URA) and NSSF.
🏥 Health & Safety
Employers must provide a safe working environment, protective gear, and health and safety training under the Occupational Safety and Health Act.
Mandatory reporting of workplace accidents.
⚠ Termination & Severance
Notice periods:
2 weeks (6 months–1 year of service)
1 month (1–5 years)
2 months (5–10 years)
3 months (10+ years)
Severance pay: Mandatory in cases like redundancy (calculated as per law or collective agreement — typically 1 month’s pay for each year worked)
Lawful termination must follow procedure including notice, final pay, and NSSF clearance.
⚖ Non-Discrimination
Discrimination based on race, color, sex, religion, political opinion, nationality, or social origin is prohibited.
Equal pay for equal work is mandated.
Opening a Legal Entity in Uganda
Business structures:
Private Limited Company (Ltd) — most common
Branch of foreign company
Representative office (non-trading)
Setup process:
Name reservation (URSB)
Company registration (URSB)
Obtain Tax Identification Number (TIN)
Register for NSSF and PAYE
Open local bank account
Timeline: 3–6 weeks
Popular Global EOR Providers Supporting Uganda
(They often partner with in-country firms for local compliance.)
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