--- title: "Uganda" id: "11857" type: "global-payroll" slug: "uganda" published_at: "2025-08-05T09:41:43+00:00" modified_at: "2026-10-07T15:13:41+00:00" url: "https://topsourceworldwide.com/global-payroll/uganda/" markdown_url: "https://topsourceworldwide.com/global-payroll/uganda.md" taxonomy_continent: - "Africa" --- # Payroll Services in Uganda Fully managed Ugandan payroll: PAYE on the new 2026/27 bands, 15% NSSF and Local Service Tax calculated on every payslip, returns filed with URA by the 15th and every payment made on time, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What payroll in Uganda actually involves Payroll in Uganda combines PAYE, a 15% NSSF contribution with no ceiling and an annual Local Service Tax collected through payroll. PAYE and NSSF are due within 15 days after the end of each month, and the PAYE bands changed with effect from 1 July 2026. ### New PAYE bands from July 2026 The Income Tax (Amendment) Act 2026 raised the tax-free threshold to UGX 335,000 a month and replaced the 10% band with a 25% band, backdated to 1 July 2026. ### NSSF at 15% of total wages Employers pay 10% and employees 5% of total wages to the National Social Security Fund, with no ceiling. Every employer contributes, whatever its number of employees. ### Local Service Tax, July to October Employees earning over UGX 100,000 a month pay UGX 5,000 to 100,000 a year, deducted by the employer in the first four months of the financial year. ### Deadlines on the 15th PAYE returns, PAYE and NSSF are all due within 15 days after the end of the month. Unpaid tax carries interest of 2% a month. ### Itemised pay statements Every payment of wages comes with a written pay statement showing each deduction, its purpose and the net pay, in a language the employee understands. ## Our Partners Globally ## Calculate Your Employee Costs in Uganda Enter a gross annual salary to see the employer’s statutory cost for a Ugandan employee in 2026/27: 10% NSSF on total wages, with no ceiling. The employee’s 5% NSSF, PAYE and Local Service Tax are withheld from salary. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Uganda Annually Monthly | | British Pound | Uganda | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your Ugandan hiring costs before you commit Tell us the role and the salary. We’ll send back the full Ugandan employer cost and the employee’s net pay after PAYE, NSSF and Local Service Tax within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in Uganda Explained A Ugandan employee costs 10% on top of gross salary in NSSF at every pay level, because the contribution has no ceiling. PAYE, the employee’s 5% NSSF and Local Service Tax come out of the employee’s pay, so they change net pay, not the employer’s cost. Here’s the breakdown. #### NSSF and who must contribute The National Social Security Fund takes 15% of each employee’s total wages every month: 10% from the employer and 5% deducted from the employee. Wages means all cash pay before deductions, allowances included, and there is no ceiling. Since the NSSF (Amendment) Act 2022, every employer must register and contribute, whatever its number of employees. Contributions are due within 15 days after the end of the month. Late contributions attract a 10% penalty, and a further 10% of the original amount is added for each month they remain unpaid. #### PAYE and the 2026/27 bands From 1 July 2026, resident employees pay no PAYE on the first UGX 335,000 of monthly chargeable income. The next UGX 75,000 is taxed at 20%, the following UGX 75,000 at 25% and income above UGX 485,000 at 30%, with an extra 10% on income above UGX 10 million a month. The new bands come from the Income Tax (Amendment) Act 2026, assented to on 20 August 2026 and backdated to 1 July. Because the Act arrived after the July and August payrolls had run, the Uganda Revenue Authority asked employers to amend those PAYE returns and refund the over-withheld tax to employees, which can be done through a later payroll. For pay above UGX 485,000 a month the difference is UGX 13,750 a month. The employee’s NSSF contribution is not deductible for PAYE; Local Service Tax is. #### Local Service Tax Local Service Tax is an annual tax on employees earning more than UGX 100,000 a month, set by monthly income band: UGX 5,000 a year on UGX 100,001 to 200,000, rising in steps to UGX 100,000 a year on pay above UGX 1 million. Employers deduct it from pay in the first four months of the financial year, July to October, and pay it to the local government, which in Kampala is the Kampala Capital City Authority. Late payment carries a 50% surcharge. Local Service Tax paid by the employee reduces chargeable income for PAYE, so net pay in July to October differs slightly from the rest of the year. #### What a Ugandan employee actually costs For an employee earning UGX 3,000,000 gross a month, the employer pays UGX 300,000 to NSSF, a total cost of UGX 3,300,000 a month, 10% on top of salary. In a month without Local Service Tax, the employee pays UGX 150,000 in NSSF and UGX 788,250 in PAYE, and takes home UGX 2,061,750. Uganda’s only general minimum wage order dates from 1984 and has not been updated, so pay is set by contract and, in some sectors, by collective agreement. Monthly-paid staff are paid at the end of each month, and final pay is due within seven days of the end of employment. #### Leave, notice and the Employment (Amendment) Act 2025 After six months of continuous service, employees earn seven days of paid annual leave for every four months worked, 21 days a year. Maternity leave is 60 working days on full pay, at least four weeks of it after the birth, and paternity leave four working days. Notice is two weeks after six months of service, one month after a year, two months after five years and three months after ten. Today, sick pay covers the first month of absence on full wages. The Employment (Amendment) Act 2025 was assented to on 29 April 2026 and starts on a date the labour minister sets by statutory instrument; none had been published by October 2026. Once in force, sick pay becomes two months on full pay and four on half pay, ending probation requires a month’s notice or pay instead of seven days’ wages, severance is fixed at one month’s salary for each completed year of service and planned redundancies must be notified to the Labour Commissioner 30 days in advance. ## Ugandan payroll contributions and taxes, 2026/27 | Item | Employer | Employee | Applies to | | --- | --- | --- | --- | | NSSF | 10% | 5% | Total wages, no ceiling | | PAYE | — | Nil to 30%, plus 10% above UGX 10 million a month | Monthly chargeable income, bands in force from 1 July 2026 | | Local Service Tax | — | UGX 5,000 to 100,000 a year | Monthly income above UGX 100,000, deducted July to October | | Payment deadline | 15th of the next month | — | PAYE return and payment, NSSF contributions | | Late payment | PAYE: 2% interest a month; NSSF: 10% penalty a month | — | On the unpaid amount | | Minimum wage | Not updated since 1984 | — | Pay set by contract or collective agreement | ### Ugandan PAYE bands for residents, from 1 July 2026 | Monthly chargeable income | PAYE | | --- | --- | | Up to UGX 335,000 | Nil | | UGX 335,001 to 410,000 | 20% of the amount above UGX 335,000 | | UGX 410,001 to 485,000 | UGX 15,000 plus 25% of the amount above UGX 410,000 | | UGX 485,001 to 10,000,000 | UGX 33,750 plus 30% of the amount above UGX 485,000 | | Above UGX 10,000,000 | As above, plus 10% of the amount above UGX 10,000,000 | ### Gross to net and employer cost in Uganda, 2026/27 | Monthly gross | Employee NSSF | PAYE | Net pay | Employer NSSF | Total monthly cost | | --- | --- | --- | --- | --- | --- | | UGX 1,000,000 | UGX 50,000 | UGX 188,250 | UGX 761,750 | UGX 100,000 | UGX 1,100,000 | | UGX 3,000,000 | UGX 150,000 | UGX 788,250 | UGX 2,061,750 | UGX 300,000 | UGX 3,300,000 | | UGX 15,000,000 | UGX 750,000 | UGX 4,888,250 | UGX 9,361,750 | UGX 1,500,000 | UGX 16,500,000 | The gross-to-net table is for a resident employee in a month outside July to October, when no Local Service Tax is deducted, with no other deductions. The employee’s NSSF does not reduce chargeable income for PAYE. These are TopSource calculations from the verified 2026/27 rates. Rates, bands and amounts shown are for the 2026/27 financial year and were verified on 7 October 2026 against the Income Tax Act, the Uganda Revenue Authority notice on the Income Tax (Amendment) Act 2026, the National Social Security Fund Act, Kampala Capital City Authority guidance on Local Service Tax and the Employment Act. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our Ugandan payroll service works 1. Map your setup We confirm your registrations with the Uganda Revenue Authority, NSSF and the local government, each employee’s TIN and NSSF number, and any collective agreement or contract terms that set pay and allowances. 2. Migrate or onboard New hires are registered with NSSF from their first month. Year-to-date pay, PAYE, Local Service Tax already deducted and leave balances are carried across so nothing is lost at the changeover. 3. Run and review Each period you receive a payroll report for approval before anything is paid: gross to net per employee, NSSF, PAYE and Local Service Tax, with variances explained. Nothing is paid until you approve it. 4. File and pay We pay salaries, issue itemised pay statements, file PAYE returns with URA, pay PAYE and NSSF by the 15th and remit Local Service Tax to the right local government, whether your team works in Kampala, Entebbe or anywhere else in Uganda. 5. Stay current PAYE bands change with each income tax amendment, and the Employment (Amendment) Act 2025 starts on a date the minister sets. We apply each change as it takes effect and re-verify the figures on this page. ## Why Choose TopSource for Global Payroll in Uganda TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases. We run Ugandan payroll in-house and file under your own URA and NSSF registrations rather than a bureau’s, so the same team that files your PAYE returns answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions, taxes and fees, and one live Portico view of Uganda beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in Uganda and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for Uganda Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Ugandan payroll FAQs ### What are the PAYE rates in Uganda for 2026/27? From 1 July 2026, residents pay nil on the first UGX 335,000 of monthly chargeable income, 20% on the next UGX 75,000, 25% on the next UGX 75,000 and 30% above UGX 485,000, plus 10% on income above UGX 10 million. The threshold was UGX 235,000 before the Income Tax (Amendment) Act 2026. ### Do employers have to refund PAYE for July and August 2026? Yes. The Act was assented to on 20 August 2026 with effect from 1 July, so URA asked employers who filed July or August returns on the old bands to amend them and refund the over-withheld tax to employees, which can be done through a later payroll. ### What are the NSSF contribution rates in Uganda? 15% of total monthly wages: 10% paid by the employer and 5% deducted from the employee, with no ceiling. Every employer must register and contribute, whatever its size, within 15 days after the end of the month. ### How much does it cost to employ someone in Uganda? The statutory employer cost is the 10% NSSF contribution, with no ceiling: an employee on UGX 3,000,000 a month costs UGX 3,300,000. Tell us the role and salary and we’ll send the full cost within one business day. ### What is Local Service Tax in Uganda? An annual local government tax on employees earning more than UGX 100,000 a month, from UGX 5,000 to UGX 100,000 a year depending on monthly income. Employers deduct it from pay between July and October and pay it to the local government. ### When are PAYE and NSSF due in Uganda? Both are due within 15 days after the end of the month. Unpaid PAYE carries interest of 2% a month, and late NSSF contributions a 10% penalty that is added again for each month they stay unpaid. ### Is there a minimum wage in Uganda? Uganda’s only general minimum wage order dates from 1984 and has not been updated, so pay is set by contract and, in some sectors, by collective agreement. ### What does the Employment (Amendment) Act 2025 change in Uganda? Once the labour minister sets its start date, sick pay becomes two months on full pay and four on half pay, severance is fixed at one month’s salary per completed year of service and redundancies need 30 days’ notice to the Labour Commissioner. It was assented to on 29 April 2026. ### How much leave do employees get in Uganda? Seven days of paid annual leave for every four months of continuous service, 21 days a year, once they have six months of service. Maternity leave is 60 working days on full pay and paternity leave four working days. ### Can a foreign company run payroll in Uganda without an entity? Registering as an employer with URA and NSSF generally requires a local presence, such as a Ugandan subsidiary or a registered branch. Without one, the usual route is an Employer of Record. TopSource can run payroll for your Ugandan entity or employ your team through our Employer of Record service. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations employ and pay teams in 164 countries. 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Tögrög](https://topsourceworldwide.com/global-payroll/mongolia/) [Montenegro Capital: Podgorica Currency: Euro](https://topsourceworldwide.com/global-payroll/montenegro/) [Morocco Capital: Rabat Currency: Moroccan Dirham](https://topsourceworldwide.com/global-payroll/morocco/) [Mozambique Capital: Maputo Currency: Mozambique metical](https://topsourceworldwide.com/global-payroll/mozambique/) [Namibia Capital: Windhoek Currency: Namibian Dollar](https://topsourceworldwide.com/global-payroll/namibia/) [Nepal Capital: Kathmandu Currency: Rupee](https://topsourceworldwide.com/global-payroll/nepal/) [New Zealand Capital: Wellington Currency: New Zealand Dollar](https://topsourceworldwide.com/global-payroll/new-zealand/) [Nicaragua Capital: Managua Currency: Nicaraguan córdoba](https://topsourceworldwide.com/global-payroll/nicaragua/) [Nigeria Capital: Abuja Currency: Nigerian Naira](https://topsourceworldwide.com/global-payroll/nigeria/) [Norway Capital: Oslo Currency: Norwegian krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more