How to hire remote employees in

Uganda

In the next five minutes, you’ll learn how you can hire talent remotely in Uganda—without paying thousands in fees and wading through months of legal red tape.

Country snapshot

CURRENCY
Ugandan shilling
EMPLOYER TAXES
15%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Swahili/English

What to know before you hire in 

Uganda

Laws about hiring are complicated. Uganda’s no different. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in Uganda, you have two real options when it comes to hiring. We’ll detail both below.

If you want to successfully hire in 

Uganda

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Uganda

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Uganda

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Uganda

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Uganda

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Uganda

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Uganda

?

If you’re hiring contractors in 

Uganda

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Uganda

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Uganda

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Uganda than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Uganda.

Taxes in 

Uganda

Employer tax

National Social Security Fund(NSSF)

Individual tax

Leave

Paid Time Off (PTO)

A worker, working weekly for sixteen or more hours, is entitled to 21 working days paid annual leave at the rate of 7 days for each period of continuous 4 months of service on completion of 12 months of continuous service.

The time to take annual leave has to be agreed between the parties.

Public Holidays

There are 18 public holidays. Public holidays that occur on a weekend remain on that date.

Sick Days

An employee who has served at least one month of continuous service is entitled to sick leave

  • Two months in any one calendar year one month on full pay and one month with no pay.
  • The employer may require a medical certificate from a qualified medical practitioner before granting sick leave or at the earliest opportunity but the sick must be supported a sick off certificate issued by a qualified medical doctor.
  • For the first month’s absence from work he or she is entitled to full wages and every other benefit for the first month and nil salary and benefits in the second month.
  • If at the expiration of the first month the sickness of the employee still continues, the employer is entitled to terminate the contract of service on complying with all the terms of the contract of service

Maternity Leave

A female employee who has a valid contract of service is entitled to maternity leave. The law does not provide a minimum period of service to qualify for maternity leave.

The female employee Shall have the right to a period of sixty working days leave from work of which at least four weeks shall follow the childbirth or miscarriage. A female employee shall be entitled to full pay during maternity leave.

Paternity Leave

Private sector employees are not entitled to receive paternity leave.

Parental Leave

A male employee whose official spouse gives birth shall be entitled to paternity leave.

The employee shall be entitled to four (4)working days Leave yearly.

Other Leave

No Info.

Marriage Leave

Marriage Leave - 14 days

Bereavement Leave

A worker can receive a maximum of 14 days’ leave per year for bereavement due to death in the family, illness of family.

Termination

Termination Process

An employment contract can be terminated at the end of the contract term (if for a fixed period), by the employer with notice, or by the employee with or without notice.

An employer can dismiss an employee without notice if the employee has fundamentally broken their obligations under the employment contract. Otherwise, the employer must provide the employee with notice.

Notice Period

The notice period is between two week and three months depending on the employee’s length of service.

The employer shall pay severance allowance where an employee has been in his or her continuous service for a period of 1 year or more and the severance allowance shall be paid to the employee within twenty-one days from the date of expiry or termination of the contract of service.

Severance Pay

Severance pay shall be at the minimum the employee's one-month gross salary at the date of termination per year worked.

Probation Period

The maximum period of probation in Uganda is 6 months but which can be extended in writing to one year giving reasons for the extension.

Employee requirements in 

Uganda

Working Hours

Normal working hours are 8 per day and 48 per week.

Overtime

Workers may be required to work overtime, provided that total working hours, inclusive of overtime, must not exceed 10 hours per day or fifty-six hours per week except when persons are employed in shifts.

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