Income tax and Statutory deductions in Uganda
1. Income tax/PAYEThe Uganda Revenue Authority (URA) is responsible for the administration and collection of different taxes including income tax. Income tax is a direct tax on individuals and limited companies. Below are the tax brackets and amounts per month.
|Monthly taxable income (UGX)
|UGX 0 - 235,000
|UGX 235,000 - 335,000
|UGX 335,000 - 410,000
|UGX 410,000 -10,000,000
|UGX 10,000,000 and Above
2. Pension and social security
The National Social Security Fund (NSSF) is a quasi-government agency responsible for the collection, safekeeping, responsible investment, and distribution of retirement funds from employees of the private sector in Uganda who are not covered by the Government Retirement Scheme. Participation for both employers and employees is compulsory. The total contribution is equal to 15% of an employee's gross salary, with the employer contributing 10% and the employee 5%.
3. Occupational accidents and Health
In Uganda, employers are required to obtain and maintain an insurance policy with an insurer approved by the Government in respect of any liability that the employer may incur. This is for the purpose compensating workers who suffer occupational injuries arising out of and in the course of their employment in accordance with the worker’s compensation Act 2000.
• Notice of Accident by Employee to Employer
- Written or verbal notice of any occupational disease or accident must be given by or on behalf of the employee concerned to the employer after such a disease or accident happens.
• Notice of injury or accident by employer to the Labour office
-An employer must report the accident to the labour office as soon as is reasonably practicable.
• Examination and treatment
- Employee must avail themselves at the medical practitioner’s office for thorough examination.
-The compensation to be provided will be determined as per the Act