Government revives talks on minimum wage
Cleaners say they work for about nine hours yet they are paid peanuts. Photo/File
What you need to know:
- Uganda currently has no legally enforceable minimum wage. The last statutory wage, set in 1984, was pegged at Shs60,000 per month, an amount that has long been rendered obsolete by inflation and economic changes.
The government has resumed discussions on introducing a national minimum wage, a move seen as long overdue in a labour market increasingly dominated by low-paying and unregulated jobs.
According to the Ministry of Finance, President Museveni has instructed the Ministry of Gender, Labour and Social Development to take the lead in initiating tripartite discussions involving employers and employees to establish a fair and enforceable wage floor.
Speaking at the launch of Ugandan-assembled TCL electronics products on Saturday last week, State Minister for Finance-in-charge of Investment Evelyn Anite, said the President is now directly steering the conversation on wage reform.
“The President is leading the discussions; previously, we did not see the need because there was widespread unemployment and the government could only offer about 490,000 jobs. We had to attract investors first to create jobs,” she said.
“Now that we have attracted them, it is time to talk about a minimum wage. It is unfair for someone to start working at 6am and end at 5pm for a meagre, unregulated pay,” she added.
Ms Anite explained that the Ministry of Gender has been instructed to convene a tripartite forum bringing together government, employers, and workers’ representatives to ensure that workers are not only treated fairly but also receive a living wage for their labour.
Uganda currently has no legally enforceable minimum wage. The last statutory wage, set in 1984, was pegged at Shs60,000 per month, an amount that has long been rendered obsolete by inflation and economic changes.
Minimum wage
Parliament passed a Minimum Wage Bill in 2015, but it was vetoed by the President, who cited concerns about its impact on investment and job creation.
However, Ms Anite noted that foreign and domestic investments have collectively generated over 1.2 million jobs, creating the right conditions for introducing labour protections. Yet critics argue that many of these so-called “jobs” are informal, low-paying, and lack any social protection.
Reports suggest that some foreign investors, particularly in manufacturing and construction sectors, pay workers as little as Shs5,000 to Shs10,000 per day in cash, without contracts, appointment letters, or social security contributions.
One of the companies spotlighted at the TCL launch was the Chinese-owned Tian Tang Group, which is currently assembling large-screen televisions, refrigerators, air conditioners, woofers, and washing machines at its factory in the Mbale Industrial Park.
According to Mr Jiakun Luke Wang, the director of Tian Tang Group, the company employs about 250 workers in Mbale and plans to double that number once its new refrigerator manufacturing plant opens next month.
Background
Labour unions and civil society groups have long advocated for the enforcement of minimum wage laws as a tool to reduce exploitation and improve livelihoods, especially among semi-skilled workers.
With President Museveni now backing the conversation and the Ministry of Gender tasked with coordination, stakeholders say they are cautiously optimistic that the country could finally see progress on the issue.
