HRsolution » COUNTRIES » Uganda

Population

Uganda has about 48 million inhabitants (as of 2023). It is an ethnically diverse country with over 50 ethnic groups, including the Baganda, Banyankole, Basoga, Bakiga, and Iteso. Uganda has a young population with a high percentage of youth.

Capital

The capital of Uganda is Kampala, the largest city in the country and the economic, political, and cultural center. Kampala is located on the shores of Lake Victoria and is known for its bustling markets, cultural sites, and economic growth.

Economic Power

Uganda has one of the fastest-growing economies in East Africa. The economy is based on agriculture, which employs around 70% of the population. Key exports include coffee, tea, tobacco, and fish. The service sector, especially telecommunications and financial services, is growing rapidly. Despite economic growth, Uganda remains a low-income country, with widespread poverty, particularly in rural areas. The informal sector also plays a significant role in the economy.

Culture

Uganda’s culture is diverse and shaped by the many ethnic groups and traditions in the country. Music, dance, and traditional rituals play a central role in daily life. Ugandan cuisine mainly consists of staple foods like matoke (cooked bananas), maize porridge, and various meat and fish dishes. Uganda is predominantly Christian, but it also has a significant Muslim community.

Currency

The official currency of Uganda is the Ugandan Shilling (UGX).

Health Insurance and Social Security System

Uganda has a public health system, which is often underfunded and operates with limited resources. There is no mandatory national health insurance, and access to healthcare often depends on the financial situation of the patients. Private health insurance is available for wealthier individuals but does not provide comprehensive coverage for the broader population.
The social security system is primarily managed by the “National Social Security Fund” (NSSF), which covers pension insurance and work accident insurance. However, the system is limited and mainly covers formally employed individuals.

Costs for Employers

Employers in Uganda must contribute to social security (NSSF), which amounts to 15% of gross salary (10% from the employer and 5% from the employee). These contributions cover pension insurance and some other social security benefits.

Salaries and Bonuses

Salaries in Uganda vary widely depending on the occupation, industry, and qualifications. The minimum wage is relatively low and often does not cover the cost of living. Bonuses are not legally required but are frequently used as incentives in the private sector.

Payroll

Payroll in Uganda must account for legal deductions for taxes and social security contributions. Employers are responsible for properly calculating and remitting these deductions.

Public Holidays

Public holidays in Uganda include New Year’s Day (January 1), Liberation Day (January 26), International Women’s Day (March 8), Labor Day (May 1), Independence Day (October 9), Christmas (December 25), and Boxing Day (December 26). There are also religious holidays such as Eid al-Fitr and Eid al-Adha.

Working Hours

Regular working hours range from 40 to 48 hours per week, depending on the industry. Overtime is legally regulated and must be compensated.

Vacation

Employees are entitled to at least 21 paid vacation days per year, depending on the length of employment. There are also paid public holidays. The vacation entitlement may be extended by collective agreements or individual contracts.

Incapacity for Work

In the event of incapacity due to illness, employees must provide a medical certificate. Sick pay is arranged by the employer but is often limited. The public system offers only limited support for illness cases.

Termination/Severance Pay

Uganda’s labor law requires that terminations be justified and come with a notice period, which varies depending on the length of employment. Severance pay is required in certain circumstances, particularly for wrongful termination. The amount of severance pay depends on the length of employment and the specific circumstances of the termination.

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