Commodities

Employers’ body to introduce training levy

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By FARIDAH KULABAKO

Posted  Monday, January 6   2014 at  02:00

In Summary

The levy will raise funds to improve the productivity of enterprises.

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Kampala

The Federation of Uganda Employers plans to introduce a training levy this financial year to boost skills development in the country.

Speaking at an employers’ meeting in Kampala recently, the federation chairperson, Mr Nicholas Okwir, said the move is meant to bridge the expertise gap, which has contributed to the high unemployment rates in the country.

According to Mr Okwir, the inadequate skills development in the country has seen a number of expiates imported especially in the services and hospitality industries, from countries like Kenya and India.

“Uganda has a shortage of skilled labour; that’s why some companies import skilled labour which also increases the cost of doing business because the imported workers are paid more than Ugandans,” he said.

Mr Okwir, however, noted that the training levy will be reasonable so that it doesn’t inconvenience employers who are already paying the mandatory 10 per cent pension to the National Social Security Fund on behalf of their employees. Employees contribute only five per cent.

The purpose of training levy is to raise funds to improve the productivity, competitiveness and incomes of enterprises and individuals by providing them with needed skills.

fkulabako@ug.nationmedia.com