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Home Business & Economy

Uganda Faces Fresh Calls to Revive Minimum Wage Bill as Informal Jobs Hit 89.2%

Muwanga Ronald by Muwanga Ronald
June 22, 2026
in Business & Economy
0

Labour rights advocates, economists and industry players have renewed pressure on the government to revive the long-delayed Minimum Wage Bill.

They say millions of Ugandan workers are facing rising living costs while wages remain low and labour protections stay weak.

The renewed push comes after fresh labour market data showed that 89.2 percent of jobs in Uganda are in the informal sector. Workers in this sector often earn low, irregular and largely unregulated incomes.

Stakeholders argue that the lack of a legally enforceable minimum wage has exposed many workers to exploitation. They say the situation has worsened as households struggle with rising food prices, transport costs and other economic pressures.

Workers exposed by gaps in wage laws

Organisational psychologist Barbara Oketta said some employers continue to take advantage of gaps in Uganda’s labour laws.

“As we speak, employers continue to thrive on the ambiguity of existing wage laws by underpaying their employees and unfairly treating them at their places of work,” Ms Oketta said.

She said informal workers remain among the most vulnerable. These include domestic workers, casual labourers and agricultural workers.

Many of them work without written contracts or effective legal protection.

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Ms Oketta also linked low pay to labour migration. She said some Ugandans leave the country because they expect better earnings abroad.

“The major reason why domestic workers prefer to work in the Middle East and other parts of the world is the prospect of better pay,” she said.

UMA member warns of skills loss

Mr Kenneth Tumusiime, a member of the Uganda Manufacturers Association, said delays in creating a clear wage framework could push skilled workers out of Uganda.

“Uganda risks losing experienced professionals, including doctors, engineers and teachers, to better-paying economies if workers continue to feel undervalued,” he said.

He noted that many employers worry about the cost of wage regulation. However, he said a fair wage framework could support a more stable and productive workforce in the long term.

Minimum Wage Bill stalled after 2019 rejection

The Minimum Wage Bill, 2015, was introduced by former Workers’ Member of Parliament Arinaitwe Rwakajara.

The Bill sought to create mechanisms for determining and regulating wages across different sectors of the economy.

It also proposed the creation of Minimum Wage Boards. These boards would recommend wage levels, monitor compliance and advise the government on labour remuneration policies.

However, the Bill did not become law. President Museveni declined to assent to it in 2019.

At the time, the President argued that the issues raised in the Bill were already covered under the Minimum Wages Advisory Boards and Wages Council Act.

Labour activists disagree. They say the current legal framework has not adequately protected workers.

They also argue that reforms are needed to reflect current economic realities and changes in employment patterns.

Government focuses on skills and apprenticeship

As calls for wage reforms grow, government officials say they are prioritising skills development and apprenticeship programmes.

Speaking during the Orientation and Oath-Taking Workshop of Sector Apprenticeship Committees in Kampala last week, Skills Development Officer Zachary Kansiime said the government has allocated Shs12 billion for apprenticeship training in the 2026/27 financial year.

The programme targets sectors such as agriculture, construction, manufacturing, oil and gas, and related industries.

“Many employers ask young people for experience, yet most of them are just out of school. These programmes are aimed at creating practical exposure and helping young people transition into the world of work,” Mr Kansiime said.

The apprenticeship initiative targets youth aged between 18 and 35 years.

Women and persons with disabilities will receive special consideration to promote inclusion.

Beneficiaries will receive a monthly stipend of Shs549,000 to support transport, accommodation and participation in workplace training.

Under the programme, trainees will spend 80 percent of their time in workplaces acquiring practical skills. They will spend the remaining 20 percent in training institutions for theoretical instruction.

Government officials say the initiative will help bridge the gap between education and employment by giving young people hands-on experience.

UBOS data shows informal work dominates

The Uganda Bureau of Statistics Labour Market Survey 2025 shows that informal employment remains dominant in Uganda.

The survey indicates that 89.2 percent of all jobs are informal, compared to 10.8 percent in the formal sector.

Informal employment is even higher among young workers.

The survey shows that 97.3 percent of workers aged 15 to 19 are in informal employment. Among workers aged 20 to 24, the figure stands at 93.9 percent.

Labour advocates say the figures strengthen the case for renewed debate on wage protection, especially for workers outside the formal economy.

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Muwanga Ronald

Muwanga Ronald

Muwanga Ronald is the Editor-in-Chief of UGANDANZ, where he leads the publication’s editorial coverage and contributes to stories on Ugandan politics, national affairs, governance, society and other issues affecting communities across the country.He is passionate about producing accurate, informative and engaging journalism that helps readers understand important events and developments in Uganda. His writing focuses on breaking news, public-interest stories, political developments and in-depth analysis of issues shaping the country.Ronald is committed to maintaining high editorial standards and ensuring that UGANDANZ delivers timely, balanced and relevant news to its readers. He speaks Luganda and French and is based in Kampala.

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