PAYE for Part-Time & Casual Workers in Uganda 2026

PAYE Threshold — Who Must Be Deducted

PAYE applies to any individual earning more than UGX 235,000 per month from a single employer — whether permanent, part-time, or casual. Below this threshold, no PAYE is deducted.

Casual Workers — Daily Rate PAYE Calculation

For casual workers paid daily rates, calculate their effective monthly income first:

• Worker earning UGX 15,000 per day working 22 days per month earns UGX 330,000 — above threshold, PAYE applies
• Worker earning UGX 10,000 per day working 20 days per month earns UGX 200,000 — below threshold, no PAYE

Construction Site Casual Workers

• Daily workers hired through labour contractors — the contractor (not the main employer) is responsible for PAYE deduction
• Workers earning below UGX 235,000 per month — no PAYE obligation on employer

Boda Bodas and Self-Employed Workers

A boda boda rider is typically self-employed — not an employee — and therefore not subject to employer PAYE. However if you hire a boda boda on a regular fixed arrangement resembling employment, URA may argue an employment relationship exists. Basket Advisory advises on this distinction to manage compliance risk.