Uganda Raises Public Service Wage Bill by 1.09 Trillion Shillings

The government increased the public service wage bill by more than 1.08 trillion shillings for the 2026/2027 financial year and issued new guidelines on human resource management. The wage bill will total 9.708 trillion shillings, up from 8.621 trillion shillings the previous year.

Officials said the increase will fund existing staff, critical recruitment, and phased salary enhancements for selected categories including deputy chief administrative officers, teachers in humanities, TVET instructors, and certain local government positions.

Accounting officers were directed to obtain clearance from the Ministry of Public Service before any recruitment. Unauthorized hires will not be added to the payroll, and unspent wage allocations must be avoided.

The Public Service Pension Fund established under the 2025 Act will become operational, with employer contributions set at 10 percent and employee contributions at 5 percent starting 1 July 2027. Pensioners under the previous scheme will continue receiving payments from the Consolidated Fund.

Performance appraisals will shift from traditional reports to a digital Balanced Scorecard system. Appointing authorities will no longer accept unautomated reports for decisions on contract renewals, promotions, or confirmations. All employee records must be updated in the Human Capital Management System to support the pension transition.