PopayPayroll
Payroll in Uganda, built for URA and NSSF compliance.
PAYE to the URA, NSSF contributions and Local Service Tax each run on their own filing rhythm, and the Ugandan tax year does not follow the calendar year.
One engine, all of Africa. Uganda's rules run natively inside our own gross-to-net engine — PAYE, NSSF, Local Service Tax and the overtime premiums — maintained by our Pan-African legislation team.
UG Kampala · East Africa / EAC — payroll across the continent
Understand HR in Uganda
Everything Uganda payroll asks of an employer — in one place.
The full local picture for Uganda: statutory contributions and the rules our engine runs natively — maintained by our Pan-African legislation team.
01 · At a glance
Uganda payroll, by the numbers
The fixed parameters every Uganda payroll run starts from.
02 · Statutory obligations & contributions
Social contributions in Uganda
Statutory contributions declared by the employer, each scheme with its own rate,
| Contribution | Employer | Employee | Basis & notes |
|---|---|---|---|
| NSSF — National Social Security Fund | 10% | 5% | Of gross cash emoluments |
| LST — Local Service Tax | 0% | Banded — see below Section 3 | Charged on employment income |
03 · Local Service Tax (LST)
How the LST works in Uganda
The LST is charged on employment income for the period July to October each year; remitted to the local authority of the employee's residence by 15 November.
| Monthly income (UGX) | LST per year (UGX) | ||
|---|---|---|---|
| Exceeding 100,000 but not exceeding 200,000 | 5,000 | ||
| Exceeding 200,000 but not exceeding 300,000 | 10,000 | ||
| Exceeding 300,000 but not exceeding 400,000 | 20,000 | ||
| Exceeding 400,000 but not exceeding 500,000 | 30,000 | ||
| Exceeding 500,000 but not exceeding 600,000 | 40,000 | ||
| Exceeding 600,000 but not exceeding 700,000 | 60,000 | ||
| Exceeding 700,000 but not exceeding 800,000 | 70,000 | ||
| Exceeding 800,000 but not exceeding 900,000 | 80,000 | ||
| Exceeding 900,000 but not exceeding 1,000,000 | 90,000 | ||
| Exceeding 1,000,000 | 100,000 |
04 · Income tax brackets
The employment income tax withheld for URA
In Uganda, progressive PAYE tax bands are applied to your monthly gross employment income after deducting Local Service Tax (LST), with the first UGX 335,000 taxed at 0% and an additional 10% surtax on income above UGX 10,000,000.
Annual Income Tax (UGX)
- Not exceeding 4,020,000
- 0% (tax free)
- Exceeding 4,020,000 but not exceeding 4,920,000
- 20% of the amount exceeding 4,020,000
- Exceeding 4,920,000 but not exceeding 5,820,000
- 180,000 + 25% of the amount exceeding 4,920,000
- Exceeding 5,820,000 but not exceeding 120,000,000
- 405,000 + 30% of the amount exceeding 5,820,000
- Exceeding 120,000,000
- 405,000 + 30% of the amount exceeding 5,820,000; plus a further 10% on the amount exceeding 120,000,000
Annual Income Tax (UGX)
- Exceeding 2,820,000 but not exceeding 4,020,000
- 10%
- Exceeding 4,020,000 but not exceeding 4,920,000
- 402,000 + 20% of the amount exceeding 4,020,000
- Exceeding 4,920,000
- 582,000 + 30% of the amount exceeding 4,920,000 ; plus a further 10% on the amount exceeding 120,000,000
05 · Employment contracts & other terms
The contract types and the formalities that frame them
Contract types
Full-time · Part-time; terms are negotiable between employer and employee
Notice Period
2 weeks (6–12 months); 1 month (1–5 years); 2 months (5–10 years); 3 months (10+ years). Payment in lieu permitted as per contract.
Severance pay
1 month’s salary per year of service. Payable upon cessation of employment or commencement of leave pending cessation, whichever comes first.
Termination calculations
1 month’s salary per completed year of service. Payable for unfair dismissal, redundancy, qualifying death or incapacity, employer death/insolvency, or termination by a labour officer due to unpaid wages.
End-of-year bonus
No statutory regulation; payment of any bonus or gratuity is entirely at the employer's discretion
Retirement calculations
In addition to the mandatory NSSF contributions, some employers operate gratuity or savings schemes at their discretion for the benefit of their employees.
06 · Leave & employee rights
The law sets the floor; contracts and collective agreements can add to it. Below are the statutory minimums your accruals must track.
Annual leave
7 days per 4 months of continuous service (approx. 21 days/year), full pay
Sick leave
Up to 6 months/year after 1 month’s continuous service: 2 months at full pay, followed by 4 months at half pay. After 6 months, termination requires a medical doctor’s opinion.
Maternity leave
60 working days at full pay, with at least 4 weeks after birth or miscarriage. No service requirement; 7 days’ notice required where possible. Right to return to the same role, extendable to 8 weeks if medically necessary.
Paternity leave
4 working days/year at full pay, taken immediately after the spouse’s delivery or miscarriage. No service requirement.
Other leave (compassionate/bereavement, study leave)
Not set by law. Provided at the employer's discretion.
07 · Unions & collective agreements
The federations and the framework that shape pay
Affiliated unions negotiate wage scales and union dues that your payroll must calculate, deduct and remit. A poorly applied collective agreement can lead to a dispute before the required Court.
NOTU — National Organisation of Trade Unions
A registered federation of labour unions, comprising affiliated trade unions representing employees across sectors. The representative body for employees in the tripartite structure with the Federation of Uganda Employers (FUE) and government.
COFTU — Central Organisation of Free Trade Unions
The second national trade union centre. Represents workers across multiple sectors in collective bargaining. Relevant where employees are represented by a COFTU-affiliated labour union and the employer is subject to a recognition or collective bargaining arrangement. Such arrangements may determine remuneration, allowances, benefits, deductions and other employment terms.
Ready to run Uganda payroll properly?
We'll walk through your Ugandan population, the URA and NSSF filings, and what moving to Popay looks like.
Uganda payroll, answered
Do you run Uganda payroll on your own engine?
Yes. Uganda statutory rules are configured natively inside our own gross-to-net engine and maintained by our Pan-African legislation team.
Can you handle payslips and leave locally?
Yes — compliant payslips and statutory leave are all part of the service.