Recent employment law developments in Uganda

At a glance

• Uganda has recently undertaken a series of legislative reforms aimed at modernising its employment and labour framework.
• On 24 May 2023, Uganda’s Parliament passed the Employment Amendment Bill No. 2 of 2022, introducing significant reforms to the Employment Act.
• Minimum wage increases are being discussed due to an outdated and largely exploitable system.
• In February 2025, Uganda passed the Occupational Safety and Health (Amendment) Bill 2023, updating the Occupational Safety and Health Act 2006 law to reflect modern workplace realities.
• In a parallel move to strengthen social protection, Uganda’s Parliament recently passed the Public Service Pension Fund Bill 2024.

---

Uganda has recently undertaken a series of legislative reforms aimed at modernising its employment and labour framework. These changes reflect growing concerns around worker protection, workplace safety, fair compensation, and long-term social security. Below is a summary of the key developments.

Employment (Amendment) Bill 2022

On 24 May 2023, Uganda’s Parliament passed the Employment Amendment Bill No. 2 of 2022, introducing significant reforms to the Employment Act. The bill is currently awaiting presidential assent.

Key changes:

• Labour officers: No longer have quasi-judicial powers to arbitrate disputes.
• Working mothers: Employers must provide breastfeeding facilities and protections.
• Sick leave: Entitlement extended from two to six months.
• Sexual harassment: All employers must implement a formal policy.
• Dismissal procedures: Clarifies the distinction between dismissal and termination and standardises dismissal procedures.
• Severance pay: Proposed minimum of one month’s gross salary per year of service.
• Migrant workers: Tighter regulation of recruitment and job categories.
• Dispute resolution: Repeals strict timelines for labour dispute resolution, allowing more flexibility for labour officers but potentially increasing case backlog.

Minimum wage

Uganda’s statutory minimum wage has remained unchanged since 1984, set at UGX6,000 (approx. USD1.60) per month. This outdated rate is largely unenforced, leaving many, especially in informal sectors, vulnerable to exploitation.

In 2019, Parliament passed a Bill proposing a new minimum wage of UGX136,000 (approx. USD37), but it was rejected by the President. On 1 May 2025, during International Labour Day celebrations, the President pledged to revisit the issue, with Cabinet discussions planned for June 2025. Proposed areas of focus include:

• Sector-based wage structures.
• Phasing out casual labour.
• Regulation of exploitative employment agencies.

No specific timeline or wage figure was provided, but the commitment signals potential reform. 

Enhancing workplace safety with new health and safety law 

In February 2025, Uganda passed the Occupational Safety and Health (Amendment) Bill 2023, updating the Occupational Safety and Health Act 2006 law to reflect modern workplace realities, including the rise of remote work, informal labor, and complex occupational hazards. 

Key provisions:

• Annual health and safety audits will be mandatory for all workplaces.
• Safety officers and committees will be required in all organisations.
• Pre-assignment and exit medical examinations for workers in hazardous roles must be provided by employers.
• Employer supported wellness programs such as mental health counseling, stress management, and physical fitness initiatives.
• Machine operators must receive certified training to reduce accidents.

The Ministry of Gender, Labour, and Social Development will issue regulations to guide implementation within the year.

Transitioning to contributory pension system for public servants 

In a parallel move to strengthen social protection, Uganda’s Parliament recently passed the Public Service Pension Fund Bill 2024. The bill introduces a contributory pension system for public servants, replacing the previous non-contributory model, and addresses long-standing concerns about the fiscal sustainability and equity of retirement benefits. Under the reformed structure, public employees will contribute 5% of their gross salary to the Fund, while the government will contribute 10% ensuring a more sustainable and equitable pension scheme.

Managed by a Board of Trustees including government, unions, and experts, the Public Service Pension Fund aims to boost national savings and finance development projects. The proposed law includes provisions to ensure that even employees who are dismissed from service receive pension benefits proportional to their years of completed service. A government-backed 5% salary increase for public servants has been proposed to offset the effect of mandatory contributions. 

While the reform modernises Uganda’s pension framework, labor unions seek improvements in governance representation. The new scheme marks a key step toward enhancing financial security for public workers and strengthening Uganda’s social protection system.