Minimum Wage
In Uganda, the minimum wage is primarily set through legislation via a Wages Regulation Order issued under the authority of the Minimum Wages Advisory Boards and Wages Councils Act. The Order includes any order made by the President and the Labour Minister. Minister appoints a Minimum Wage Advisory Board from time to time for any specified area or for a group of workers in any occupation, where it is desirable to fix a minimum wage and other conditions of employment. The Minister decides the statutory minimum wage based on wage regulation proposals made by the board or wage council. The Minister causes the order to be published in the Gazette and from the date of the publication or the other date as the order may prescribe. The board or council may, when deemed necessary, reconsider and recommend to the Minister the cancellation or modification of remuneration rates or employment conditions set under the Act. These recommendations are treated as wage regulation proposals and processed accordingly. However, neither the Minimum Wages Advisory Boards and Wages Councils Act, 1964, nor the Employment Act, 2006, explicitly mandates that the minimum wage must cover the living expenses of the employees.
The authorised labour officers and inspectorates ensure compliance with the minimum wage. The labour commissioner may appoint authorised officers to inspect and examine any record at the workplace and conduct any prosecution if non-compliance is found.
When an employer does not pay the required remuneration to an employee or does not follow the employment rules stated in the order, they commit an offence. If found guilty, the employer must pay a fine of at least 500 shillings for each violation, or additionally, the court may order the employer to repay to the employee the sum improperly received by way of premium.
Source: §3, 5, 11, 13, 14, & 17-21 of the Minimum Wages Advisory Boards and Wages Councils Act 1964
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
Wages are remuneration or earnings, however designated or calculated, capable of being expressed in terms of money and fixed by mutual agreement or by national laws or regulations, which are payable under an oral or written contract of service for work done or to be done, or for services rendered or to be rendered but it excludes any contributions made or to be made by the employer regarding his or her employee’s insurance, medical care, welfare, education, training, invalidity, retirement pension, post-service gratuity or severance allowance.
The Employment Act regulates the payment of wages to all classes of workers. The Act requires an employer to make timely payment of remuneration to the employees as prescribed in the employment contract or by law. If a worker is hired for a day, he is to be paid wages at the end of that day. Similarly, if he is hired for a week, he should be paid wages at the end of that week. An employee who is engaged to be paid on a fortnightly or monthly basis must be paid wages at the end of each fortnight or month. Similarly, an employee who is engaged to be paid by a piece of work done or by results must be paid by intervals of not more than one fortnight. However, the Act does not specify an exact number of days within which wages must be paid after the end of the wage period.
The wages should be paid in legal tender to the worker at the workplace or, with prior written consent of the worker, wages may be paid by bank cheque, postal order, money order or by direct payment to the worker's bank account. This means that the law does not usually allow in-kind payment of wages. However, the Minister may make regulations in this regard after consultation with the Labour Advisory Board. No individual is permitted to collect or receive wages on behalf of an employee without obtaining the employee's explicit written consent.
The Minimum Wage Advisory Board has the power to recommend the maximum sum of deductions (to represent the cost of food or housing or both food and housing provided by an employer) and an extra rate of remuneration (if an employee uses his tools).
Deduction from wages (either direct or indirect) for the purpose of obtaining or retaining employment is not allowed. Deduction from wages is permitted in case of any tax, rate, subscription, or contribution imposed by law and in any other case where the worker has agreed to the deduction (for contribution to any provident, pension fund, and scheme, or rent and accommodation provided by the employer). Union dues may also be deducted from the wage, provided that the amount of deduction does not exceed two-thirds of the wages due in respect of that pay period.
An employer should provide itemised pay statement to all workers in writing, in a form and language that is understandable by the worker. These pay slips should contain the worker's gross salary and the details related to the amount and purpose of deductions made.
Uganda does not have a legal requirement for a 13th or 14th-month pay as a compulsory bonus.
In case of non-compliance by the employer, the employee has the right to file a complaint to a labour officer.
A Labour officer has the authority to declare the termination of an employment contract if an employee files a complaint against their employer for failing to pay wages or refusing to do so. The employer, upon conviction, may be liable to repay any remuneration wrongfully withheld or wrongfully deducted from the employee.
Source: §5 of the Minimum Wages Advisory Boards and Wages Councils Act 1964; §2, 30, 40, 42-47 & 48-49 of the Employment Act of2006, last amended in 2023
