EOR Service in Uganda

Hire, Onboard and Pay Employees in Uganda Quickly and Efficiently

Hiring in Uganda at a glance

CURRENCY
Ugandan Shilling (UGX)
working hours
48 hours/ week
public/bank holidays
12
capital
Kampala
language
English; Swahili
date format
dd/mm/yyyy
remote workers
1.2M
tax year
1 July - 30 June
minimum hourly salary
No minimum wage
CURRENCY
Ugandan Shilling (UGX)
working hours
48 hours/ week
public/bank holidays
12
capital
Kampala
language
English; Swahili
date format
dd/mm/yyyy
tax year
1 July - 30 June
payroll frequency
Biweekly/Monthly
GDP
$45.56B (2022)

Employer of Record in Uganda

Uruguay, a South American nation, holds a notable economic position globally. In Sub-Saharan Africa, it ranks in the middle tier. For businesses entering Uruguay, Employer of Record (EOR) services offer a streamlined solution for hiring and managing employees, ensuring compliance and ease of entry into the local market.

Why use Uganda EOR?

EORs can help bridge language and cultural gaps for businesses looking to expand businesses in Uganda, facilitating effective communication with local employees and navigating cultural nuances in business operations. There are differences between labor laws in countries like USA and Uganda. While Uganda has labor laws protecting workers' rights, including provisions for minimum wage, working hours, and leave entitlements, Employment in the U.S. is generally "at-will," allowing employers to terminate employees for any reason. Before engaging an EOR in Uganda, companies must conduct thorough due diligence, assess the specific services offered by the EOR provider, and ensure alignment with the company's needs and compliance requirements. Consulting with legal and business professionals familiar with the Ugandan market is advisable to understand local regulations comprehensively.

EOR Costs in Uganda

In Uganda, Employer of Record (EOR) services commonly provide two pricing models: fixed and variable. Opting for Gloroots' Uganda EOR means embracing a transparent fixed fee, removing hidden charges and easing budget planning for employers. This differs from variable fee structures, which may complicate salary budgeting as costs rise with higher employee salaries. Gloroots offers a reliable and predictable solution for managing workforce expenses in Uganda.

Key Metrics For Foreign Employers 

Uganda, the Pearl of Africa, is known for its splendor, natural wonders, and amazing people. With the increasing integration of technology in various industries, IT professionals remain in high demand

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Uganda.

Factors Global Ranking Interpretation
Rule of law 84 Indicates effectiveness of law enforcement
Labour-employer cooperation 74 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 76 Indicates average QS rankings
Labor productivity per employee 109 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 60 Indicates findability of skilled talent
Workforce with tertiary education 106 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Uganda.

Why work in Uganda?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Uganda

Expand your team in Uganda effortlessly with Gloroots, your strategic partner in navigating local employment intricacies. Our tailored solutions align seamlessly with your business objectives, streamlining the hiring process while our comprehensive Employer of Record (EOR) service manages compliance, payroll, tax obligations, and benefits. With Gloroots, you can concentrate on nurturing your team and driving company expansion in the dynamic Ugandan market, confident that your operations are in compliance with local regulations.

Risks of misclassification

In Uganda, misclassifying employees poses significant risks, potentially leading to severe legal consequences and undermining essential legal protections. To safeguard against these risks, embracing a proactive approach through a Professional Employer Organization (PEO) or Employer of Record (EOR) is crucial. Businesses opting for this strategy ensures meticulous compliance, precise employee classification, and comprehensive benefits administration. Collaborating with seasoned professionals allows companies to concentrate on core operations with confidence, as employment responsibilities are expertly managed in accordance with Ugandan regulations, prioritizing the well-being and legal protection of the workforce.

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Employing in Uganda

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer

Category Contribution Rate
National Social Security Fund (NSSF) 10%
Total Employment Cost 10%

Employee

Category Contribution Rate
National Social Security Fund (NSSF) 5%
Total Employee Cost 5%

Employee Income tax

Residents:
Rate Contribution
0% 0-235,000UGX per month
10% 235,001-335,000UGX per month
20% 335,001-410,000UGX per month
30% 410,001- 1,000,000UGX
40% 1,000,000UGX and above
Non-Residents
10% 0-335,000UGX per month
20% 335,001-410,000UGX per month
30% 410,001- 1,000,000UGX
40% 1,000,000 UGX and above

Separation

Termination 

In Uganda, employers are not permitted to terminate employees arbitrarily and must cite valid reasons for termination. A fair hearing or consultation process must precede termination, during which the grounds for termination should be clearly communicated. Unfairly terminated employees are entitled to a basic compensation order equivalent to four weeks' salary. If an employer issues a termination notice, the employee can end the employment contract before the notice period concludes without being obligated to compensate the employer for the remaining duration.

Severance Pay

Employers must offer severance pay under the following conditions:

  • Unfair dismissal cases.
  • Termination of employment due to employer insolvency or death.
  • Death of an employee during their tenure.
  • Employee-initiated contract termination due to physical incapacity.

The employee must have completed at least six months of continuous service to be eligible for severance pay. The specific amount of severance pay is subject to negotiation between the employer and the employee or the labor union representing the employee.

Notice Period

The notice period mandated is contingent on the employee's tenure:

Length of Service Notice Period Required
Less than 6 months No notice required
More than 6 months to 1 year Two weeks' notice
More than 1 year to 5 years One month of notice
More than 5 years to 10 years Two months' notice
10 years or more Three months' notice

Alternatively, the employer has the option to provide compensation instead of the required notice.

Probation period

The probation period is limited to a maximum of six months. Extending the probation period is allowed with the employee's consent, but an employer cannot subject the same employee to probation more than once. Within the probation period, either the employee or employer can end the employment contract by providing a 14-day notice, or the employer can opt to pay seven days' wages in lieu of notice.

Start Hiring in Uganda Today

When expanding globally, ensuring compliance poses unique challenges. Employers must navigate employment laws, adhere to payroll protocols, uphold DE&I standards, comply with GDPR and data protection regulations, and more. While establishing local entities and commencing hiring can be daunting, staying abreast of a dynamic compliance landscape is even more demanding.

Gloroots streamlines this process, offering a centralized platform to manage these tasks effortlessly. Our in-house experts provide comprehensive protection against cross-border employment and payroll compliance risks. We assist in crafting employment contracts, ensuring timely payments, and delivering compliant benefits, allowing you to concentrate solely on talent screening.

Our commitment is to provide a seamless global employment experience, alleviating stress for both you and your employees.

Connect with our experts today to launch your global recruitment initiative.

Start Hiring in Uganda today

When expanding globally, ensuring compliance poses unique challenges. Employers must navigate employment laws, adhere to payroll protocols, uphold DE&I standards, comply with GDPR and data protection regulations, and more. While establishing local entities and commencing hiring can be daunting, staying abreast of a dynamic compliance landscape is even more demanding.

Gloroots streamlines this process, offering a centralized platform to manage these tasks effortlessly. Our in-house experts provide comprehensive protection against cross-border employment and payroll compliance risks. We assist in crafting employment contracts, ensuring timely payments, and delivering compliant benefits, allowing you to concentrate solely on talent screening.

Our commitment is to provide a seamless global employment experience, alleviating stress for both you and your employees.

Connect with our experts today to launch your global recruitment initiative.

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Experience Seamless Hiring in Uganda?

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