Uganda, often called “The Pearl of Africa,” is known for its national parks and mountain gorillas. These natural wonders have helped Uganda’s tourism sector rebound from the pandemic, growing substantially in 2023.
With a population of over 48 million and an expanding IT sector, this African nation has also gained a reputation as a desirable talent pool for companies seeking remote employees.
Benefits of Hiring in Uganda
Uganda is a source of cost-effective labor for international businesses seeking to lower overhead costs by building a global remote team while also providing Ugandan remote workers with an opportunity to pursue flexible work and improve their economic status.
Uganda has implemented universal primary education as a participating nation in the Global Partnership for Education. English is the primary language of instruction, although many students also learn Swahili.
Here are some essential facts to know about Uganda:
- Languages: English and Swahili
- Currency: Ugandan Shilling (UGX)
- Capital City: Kampala
- Population: 48.5 Million
- Cost of Living Rank: 109th
Strong Economic Growth Outlook in Uganda
While Uganda’s market-based economy has traditionally been agriculturally driven, the country gained lower-middle-income status in 2024. The economy is projected to grow by 6% in 2024 and 7% in 2025.
Uganda’s information and communications technology sector has recently experienced double-digit growth. Common job sectors for international companies hiring top talent in Uganda include:
- Executive associate
- Software engineer
- Social media specialist
- Project management
- Virtual assistant
- Copywriter
- Graphic designer
- Interpreter
Employment Laws: Hiring Compliantly in Uganda
Employment Contracts
Employment contracts are required under Ugandan labor law. Contracts can be oral or in writing, but employers must provide the written details to employees within 12 weeks of their employment start date.
Ugandan employment contracts should be written in English and Swahili and include:
- Employee’s full name and address
- Job title
- Start date
- Wages
- Overtime pay rate
- Benefits
- Scheduling
- Termination process
During the hiring process in Uganda, employers may not discriminate based on race, gender, origin, religious beliefs, disability, or HIV status.
Working Hours & Pay
The standard work week in Uganda is 40 hours, with a legal maximum of 48 hours, and workdays may not exceed 10 hours. The work week can be extended to 56 hours with the employee’s consent, including overtime. Employers must pay 1.5 times the employee’s regular rate for any time worked beyond 48 hours.
There’s an ongoing effort to establish a universal minimum wage in Uganda. In 2019, the Ugandan parliament passed a bill establishing minimum wages for varying sectors. However, the president declined to sign the bill.
Probation Periods
Uganda’s Employment Act specifies that an employee’s probationary period can’t exceed six months unless the employee agrees to one additional six-month period.
Employer Taxes
Uganda’s multi-tiered pension system has two main components: the public pension system for public sector employees and the national social security fund, which is meant to cover workers at companies with more than five employees.
Employers must make monthly contributions to the fund for each eligible employee. The total contribution is 15% of the employee’s gross monthly wage, calculated as follows:
- Employee contribution: 5% deducted from the employee’s gross monthly salary
- Employer contribution: 10% of the employee’s gross monthly salary
Termination Process & Severance Pay
Uganda does not permit at-will termination, although employers can terminate an employee for just cause, such as misconduct, gross negligence, and insubordination. The minimum notification period for termination is two weeks, which increases up to three months based on the length of employment.
When employers are terminated without cause they may be entitled to severance pay if they’ve worked continuously at one company for at least six months. The employer and employee must then negotiate the severance pay amount.
Paid Leave Laws in Uganda
Vacation & Holiday
Ugandan employees receive at least 21 days of paid time off each year and over a dozen paid national holidays.
Sick Leave
Ugandans are entitled to two months of sick leave per year. The employer pays the employee’s standard wages for the first month; the second month is unpaid.
Maternity Leave
New and expectant mothers are entitled to 60 days of paid maternity leave, during which the employer pays their full salary.
Paternity Leave
Fathers are entitled to four days of paid paternity leave after their partner gives birth.
Why Digital Nomads Love Uganda
Uganda does not offer a digital nomad visa, but visitors can stay in the country for up to 90 days on a tourist visa. Work permits are valid for up to two years, and the cost depends on the type of work. The Ugandan government offers an online process for applying for visas and permits.
For nature-loving digital nomads, Uganda provides many exciting and scenic areas to explore. From Lake Victoria to the mountain gorillas of Bwindi Impenetrable National Park, Uganda offers world-renowned natural wonders.
Kampala and other urban centers feature dynamic nightlife and a comparatively low cost of living.
Uganda’s investments in communications infrastructure, including improving internet connections, have made it increasingly easy to perform remote work in the country, especially within Kampala.
Hire in Uganda with Remofirst
As an Employer of Record (EOR), Remofirst helps companies hire global talent in over 180 countries, including Uganda. An EOR helps ensure compliance with local employment laws — preventing potentially significant financial penalties for noncompliance.
Book a demo today to learn how Remofirst can assist with hiring and onboarding global team members, managing benefits such as healthcare insurance, protecting your IP, and more.
