Uganda Guide
A detailed analysis of payroll statutory rates, contributions, progressive tax brackets, and compliance requirements in Uganda. Vetted by our local legal desk.
Interactive Calculation
Dynamic Compliance Estimator.
Input a gross salary below to view real-time statutory payroll deductions for both employee and employer.
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This estimator operates dynamically using current statutory formulas under the local laws of Uganda.
Detailed Payroll Breakdown
Statutory Coverage
Understanding Your Deductions.
Vetted summaries of local statutory regulations and payroll laws operating in this country.
NSSF (National Social Security Fund)
Mandatory savings scheme for employees in the private sector.
PAYE (Pay As You Earn)
Progressive tax levied by the Uganda Revenue Authority (URA) on employment income.
| Salary Brackets (UGX) | Tax Rate / Amount |
|---|---|
| 0 – 235,000 | 0% |
| 235,000 – 335,000 | 10% |
| 335,000 – 410,000 | 20% |
| 410,000 – 10,000,000 | 30% |
| Above 10,000,000 | 40% |
Local Service Tax (LST)
Tax deducted from salary earners and paid to local government authorities.
| Salary Brackets (UGX) | Tax Rate / Amount |
|---|---|
| 0 – 100,000 | 0 UGX |
| 100,000 – 200,000 | 5,000 UGX |
| 200,000 – 300,000 | 10,000 UGX |
| 300,000 – 400,000 | 20,000 UGX |
| 400,000 – 500,000 | 30,000 UGX |
| 500,000 – 700,000 | 50,000 UGX |
| 700,000 – 1,000,000 | 70,000 UGX |
| Above 1,000,000 | 100,000 UGX |
Compliance FAQ
Answers From the Legal Desk.
Employment income below UGX 235,000 per month is exempt. Income between UGX 235,000 and UGX 335,000 is taxed at 10%. Earnings from UGX 335,000 to UGX 410,000 incur a flat UGX 10,000 plus 20% of the excess. Earnings over UGX 410,000 incur a flat UGX 25,000 plus 30%. A top-up surcharge of 10% (making 40% total) is applied to gross monthly earnings above UGX 10,000,000.
Private sector employers must register and contribute to NSSF. The employee contributes 5% of their gross monthly wages, while the employer contributes 10%. This brings the total NSSF contribution to 15% of the gross salary.
LST is deducted directly from employee salaries by the employer, based on income levels. The annual tax ranges from UGX 5,000 for low earners up to a maximum of UGX 100,000 for those earning over UGX 1,000,000 per year.
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