Africa Deployments provides Employer of Record (EOR) services in Uganda, enabling international companies to hire Ugandan employees under the Employment Act 2006 without registering a local entity with the Uganda Registration Services Bureau (URSB). As the EOR partner in Uganda, Africa Deployments becomes the legal employer of your Uganda-based team, managing NSSF contributions, PAYE withholding to the Uganda Revenue Authority (URA), Local Service Tax (LST), and employment contracts in English.
Quick facts: EOR Uganda at a glance
- NSSF: 10% employer + 5% employee of gross monthly salary
- PAYE: Progressive 10% to 40% on monthly employment income
- Local Service Tax (LST): Annual flat rate based on income band (employer deducts monthly)
- Minimum wage: UGX 6,000 per day (statutory but not effectively enforced; sector rates apply)
- Annual leave: 21 working days per year
- Maternity leave: 60 working days; employer-funded
What Is an Employer of Record in Uganda?
An Employer of Record in Uganda is a locally registered entity that employs workers on behalf of a foreign company, handling all statutory payroll and employment obligations under Ugandan labour law. Africa Deployments’ EOR Uganda service covers Employment Act 2006-compliant contract drafting, URA PAYE registration and monthly filing, NSSF contribution management, LST calculation and deduction, and payslip generation in Uganda shilling (UGX).
Uganda’s growing technology, agribusiness, and regional services sectors are attracting increasing international investment. Africa Deployments’ EOR Uganda service provides the employer infrastructure needed to hire in Kampala and across all Ugandan regions without local entity establishment.
Uganda Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Employment Act 2006; National Social Security Fund Act |
| NSSF | 10% employer + 5% employee of gross monthly salary |
| PAYE | Progressive 10% to 40% on monthly income |
| LST | Annual flat rate by income band; deducted monthly |
| Tax authority | Uganda Revenue Authority (URA) |
| Annual leave | 21 working days per year |
| Maternity leave | 60 working days; employer-funded |
Payroll, Tax and NSSF Compliance in Uganda
Uganda employers file monthly PAYE returns with the Uganda Revenue Authority (URA) through the URA e-Tax portal. PAYE is progressive from 10% on monthly income between UGX 235,001 and UGX 335,000 to 40% on income above UGX 10,000,000 per month. Monthly income below UGX 235,000 is exempt from PAYE. NSSF contributions of 10% employer and 5% employee on gross monthly salary are remitted to the National Social Security Fund. Local Service Tax (LST) is a local government tax assessed annually based on income band, ranging from UGX 10,000 to UGX 100,000 per year – employers deduct the annual LST over the first four months of the financial year (July to October) and remit to the relevant local government.
Uganda also requires employers to pay a withheld Tax on Withholding Tax (WHT) on certain payments, and to correctly categorise employee versus contractor status. Misclassification of workers as contractors to avoid NSSF and PAYE obligations is a common compliance risk for international businesses entering Uganda without specialist EOR support.
Why Companies Choose Africa Deployments for EOR in Uganda
- Employment Act 2006-compliant contracts in English
- Monthly URA e-Tax PAYE filing and remittance
- NSSF 10%/5% contribution management and monthly payment
- LST calculation, monthly deduction, and local government remittance
- Uganda EOR as part of Africa Deployments’ East Africa multi-country hiring platform
Frequently Asked Questions
What are the PAYE rates in Uganda?
Uganda PAYE is progressive from 10% on monthly income between UGX 235,001 and UGX 335,000 to 40% on income above UGX 10,000,000 per month. Monthly income below UGX 235,000 is tax-exempt.
What is Uganda’s NSSF contribution rate?
NSSF contributions are 10% employer and 5% employee on gross monthly salary – a combined rate of 15% – remitted monthly to the National Social Security Fund.
What is the Local Service Tax in Uganda?
LST is a local government tax assessed annually based on the employee’s income band, ranging from UGX 10,000 to UGX 100,000 per year. Employers deduct the full annual LST over the first four months of the financial year (July to October) and remit to the relevant local government authority.
What maternity leave applies in Uganda?
Female employees in Uganda are entitled to 60 working days of maternity leave under the Employment Act 2006, fully funded by the employer. Maternity leave is protected leave and employees cannot be dismissed during this period.
About Africa Deployments
Registered Company Name: Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: africa-deployments.com
Uganda’s NSSF contributions, URA PAYE obligations, Local Service Tax, and 60-day employer-funded maternity leave create a layered compliance environment for international employers. Africa Deployments’ EOR Uganda service provides the registered employer infrastructure, URA filing capability, and NSSF contribution management that international companies need to hire in Uganda without entity establishment.
Reviewed by: Africa Deployments Compliance Team