Industrial players and labour advocates have renewed calls for the government to revive and enact the long-delayed Minimum Wage Bill, arguing that stagnant wages are leaving many Ugandan workers unable to cope with rising living costs.
The appeal comes amid growing concerns that increasing household expenses, fuel-related costs and global economic shocks are eroding workers’ purchasing power, particularly among those in the informal sector.
Speaking to the Monitor on Wednesday, organisational psychologist Barbara Oketta said many employers continue to take advantage of gaps in existing labour laws to underpay workers.
“As we speak, employers continue to thrive on the ambiguity of existing wage bills and laws by underpaying their employees and unfairly treating them at their places of work,” Ms Oketta said.
She noted that informal workers, including farm labourers and domestic workers, remain especially vulnerable because many operate without adequate legal protections.
Ms Oketta also linked low wages to increasing labour migration, saying many Ugandans seek employment abroad in search of better pay.
“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.
She argued that fair remuneration is essential if Uganda is to improve household welfare and achieve its ambition of becoming an upper middle-income economy.
Kenneth Tumusiime, a member of the Uganda Manufacturers Association, warned that continued delays in implementing a minimum wage framework could accelerate the loss of skilled professionals to foreign labour markets.
“Uganda risks losing experienced professionals, including doctors, engineers and teachers, to better-paying economies if workers continue to feel undervalued,” he said.
The Minimum Wage Bill, 2015, introduced by former Workers’ MP Arinaitwe Rwakajara, sought to establish mechanisms for wage regulation and worker protection. However, President Yoweri Museveni declined to sign it in 2019, arguing that the concerns it addressed were already covered under the Minimum Wages Advisory Boards and Wages Council Act.
The proposed law would have created Minimum Wage Boards mandated to recommend wage levels and enforce compliance through fines and imprisonment for offending employers.
Meanwhile, the government says it is focusing on improving employability through skills development programmes.
Addressing journalists during the orientation and oath-taking workshop of Sector Apprenticeship Committees in Kampala, Skills Development Officer Zachary Kansiime said Shs12 billion has been allocated in the 2026/27 financial year to support apprenticeship training in agriculture, manufacturing, construction, oil and gas and related sectors.
“Many employers ask these people for experience, yet most of them are just out of school. The programmes aim at creating practical training of the youths in the world of work,” Mr Kansiime said.
The programme targets youth aged between 18 and 35 years and offers a monthly stipend of Shs549,000 to support transport, accommodation and workplace participation.
According to a 2025 labour study, only 34 percent of Ugandan workers possess job-relevant skills.
Uganda Bureau of Statistics data further shows that 89.2 percent of Ugandans work in the informal sector, compared to just 10.8 percent in formal employment.
The report found informal employment is highest among young people, accounting for 97.3 percent of workers aged 15-19 and 93.9 percent among those aged 20-24.
In a June 17 statement, Ministry of Gender, Labour and Social Development Permanent Secretary Aggrey Kibenge acknowledged persistent gaps between education and labour market needs.
“Many young people complete training without sufficient workplace experience, making the transition into employment difficult,” he said.
As debate over wages, job quality and labour protections intensifies, pressure is mounting on policymakers to decide whether skills development alone can address Uganda’s employment challenges or whether long-delayed wage reforms should return to the centre of the national agenda.