Home Employer of record Employer of record in Uganda
Employer of record in Uganda
You can employ people in Uganda without registering a company there. We engage a vetted local partner as the locally registered legal employer in Uganda and manage the employment for you, with SLONEC Advisory Group as your single contracting party in the UK. We cover contracts, PAYE, NSSF, local service tax and work permits for foreign staff.
Services we coordinate in Uganda
Employer of record; set-up coordination with the Uganda Registration Services Bureau and Uganda Revenue Authority; payroll and compliance; market entry support for East Africa.
Payroll in Uganda
- PAYE on graduated rates under the Income Tax Act, paid to the Uganda Revenue Authority by the 15th of the following month.
- NSSF: 15% of gross pay, 10% from the employer and 5% from the employee, due by the 15th of the following month.
- Local service tax, deducted by employers from eligible employees’ pay under the Local Governments Act and paid to the local government in instalments during the first four months of the financial year (July to October).
- Employment terms under the Employment Act 2006.
Foreign staff: permits
Foreign employees usually need a Class G2 work permit from Uganda’s immigration authority, applied for online at visas.immigration.go.ug, with the employer as sponsor.
Who hires in Uganda
Uganda received about US$3.3 billion of foreign direct investment in 2024 (UNCTAD), much of it linked to oil development around Lake Albert and infrastructure.
UK tax angle (general information, not advice)
The UK and Uganda have a double taxation convention in force from 21 December 1993. Tax treaties do not cover National Insurance. The UK has no social security agreement with Uganda. If a UK employer sends one of its own employees to work there, UK Class 1 National Insurance may continue for the first 52 weeks if the conditions are met, and NSSF contributions may also be due. If the person is employed locally through the employer of record instead, UK Class 1 National Insurance does not normally continue, although they may be able to pay voluntary Class 3 contributions if they meet the conditions. UK income tax depends on residence under the Statutory Residence Test. Using an employer of record does not by itself prevent a permanent establishment. Ask us for a proposal and we will look at your facts.
Pricing. Our employer of record service in Uganda is US$199 to US$399 per employee per month (excluding UK VAT or any local sales tax, where either applies), plus the employment costs, which are charged at cost. We confirm the fee for your team in a written proposal.
Invoicing and VAT. Employment costs (salary, employer social security, pension contributions and other agreed employment costs) are charged at cost. VAT, where it applies, is charged on the total of the employment costs and our service fee. Our fees for this service are set out in US dollars in your proposal and invoiced in US dollars, exclusive of VAT. Where UK VAT applies, the VAT amount is also shown in pounds sterling on our invoice, as UK VAT rules require. SLONEC Advisory Group has applied for VAT registration. Where VAT applies, it will be charged at the applicable rate on fees for work carried out on or after our VAT registration date, and our VAT number will be shown on our invoices.
Frequently asked questions
Can I hire in Uganda without a local company?
Yes, where we engage a vetted local partner as the locally registered legal employer, with SLONEC Advisory Group as your contracting party.
What are NSSF rates in Uganda?
15% of gross pay: 10% from the employer and 5% from the employee.
When is PAYE due?
By the 15th of the following month, to the Uganda Revenue Authority.
What permit does a foreign employee need?
Usually a Class G2 work permit from Uganda’s immigration authority, applied for online.
Is there a UK tax treaty with Uganda?
Yes, a convention in force from 21 December 1993. It doesn’t cover National Insurance.
Do you cover Kenya and Tanzania too?
Yes, with separate pages for each.
How much does it cost?
Our service fee is US$199 to US$399 per employee per month. Salary, employer contributions and other agreed employment costs are charged at cost on top. UK VAT or any local sales tax is payable on top where either applies, and we confirm everything in a written proposal.