Employer of Record Services in Uganda (EOR)
Are you looking for Employer of Record services in Uganda? Afrilink Consultants simplifies hiring, payroll, talent matching, and your compliance needs for employees in Uganda. No need for a subsidiary or company setup. From contracts and onboarding to taxes, payroll, and admin tasks, our Employer of Record services in Uganda will help you focus on growth for greater levels of success.
How Employer of Record (EoR) Works in Uganda
EOR service providers make it hassle-free to hire and manage your remote staff in Uganda without setting up a subsidiary or entity in the country. It handles staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. Business.
Employment Contracts in Uganda
Employment contracts in Uganda encompass the following features;
- Payroll frequency is monthly and bi-monthly.
- The probationary period lasts for a maximum of six months.
- However, it can be extended for up to six months with the employees’ agreement.
- Day of rest: Employees have the right to 24 consecutive hours of rest per week, which can occur on a customary rest day (Sunday) or a day mutually agreed upon by both the employer and the employee.
- In Uganda, the minimum age for commercial employment is 16 years. Children aged 14 and above can be engaged in light work under the supervision of an adult over 18. However, the work hours and tasks should not interfere with the child’s education.
Working Hours in Uganda
In Uganda, employees’ standard working hours are a maximum of eight hours per day and 48 hours weekly. Including lunch and worship time, the working hours can be nine hours daily.
Observed National Holidays and Vacation
There are the official public holidays in Uganda:
- New Year’s Day – 01 January
- NRM Liberation Day – 26 January
- International Women’s Day – 8 March
- Good Friday (exact day varies)
- Easter Monday (exact day varies)
- Labour Day – 1 May
- Martyrs’ Day – 3 June
- National Heroes’ Day – 9 June
- Eid al-Fitr (end of Ramadan, exact day varies)
- Independence Day – 9 October
- Eid al-Adha (Feast of the Sacrifice, exact day varies)
- Christmas Day – 25 December
- Boxing Day – 26 December
Expats, Visas & Work Permits
To qualify for a work permit in Uganda, you must satisfy the following conditions:
- Have a valid passport
- Secure a job offer from a Ugandan company or organisation
- Demonstrate the requisite qualifications and experience for the position offered
An EoR service provider offers this service to help global businesses manage their team expansion.
Paid Leave
An employee working sixteen or more hours per week is eligible for 21 working days of paid annual leave. This entitlement accrues at a rate of 7 days for every continuous 4-month period of service after completing 12 months of continuous service. Both parties must mutually agree upon the timing for taking annual leave.
- Sick leave: Following one month of uninterrupted employment, employees working at least 16 hours per week become eligible for paid sick leave.
- Maternal leave: Employees are entitled to 60 days of maternity leave.
- Paternal leave: Male employees are entitled to four days of paternity leave.
Statutory Deductions
- Social Security Contributions: An employed individual must contribute 5% of their gross earnings to the national social security fund. Employers must also contribute 10% of each employee’s gross pay to the National Social Security Fund.
Workers who work in multiple places are subject to a fixed tax rate of 30% on their total income from all employment.
- Corporate Tax Rate: The corporate income tax rate stands at 30%. However, oil, gas, and specific mineral exploitation activities face varying tax rates, ranging from 25% to 45%. These rates depend on the ratio of their taxable income to gross revenue.
- VAT / Sales Tax Rate: VAT is charged at the rate of 18%
Health Insurance
Medical insurance is not compulsory, but it’s best practice. Uganda’s healthcare system comprises publicly funded (national and district-based) and privately funded facilities. The government regulates all healthcare facilities, and private businesses invest in and manage hospitals, clinics, and pharmacies. An Uganda employer of record can help employers make provision of health insurance for their remote employees.
Other Compensation and Benefits
The compensation and benefits in Uganda include maternity benefits, compensation to the family for death during service, disability benefits, retirement compensation, and more.
Termination/ Severance in Uganda
- Termination Process: The employment agreement can be terminated by the employer or the employee, with or without notice. Employers retain the right to dismiss employees without cause in the event of a significant breach of contract obligations by the employee. The length of the notice period ranges from two to three months, determined by the employee’s tenure.
- Notice Period: The notice period depends on the employee’s tenure. It is two weeks for employees with over six months but less than one year of service, one month for those with over twelve months but less than five years, two months for those with over five but less than ten years, and three months for those with over ten years of service.
- Severance Pay: While the law outlines provisions for severance pay, this compensation is subject to negotiation between the employer and the employee. After six months of continuous service, the employee becomes eligible for severance pay.
Conclusion
Whether you are looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organisation. For more information on Employer of Record services in Uganda, reach out to our experts.
📩 clientservice@afrilinkconsultants.com
📞 +254707280366
