KAMPALA, UGANDA – The government will increase the salaries of public servants by at least 50% under the 2026-27 budget, Public Service Minister Muruli Mukasa announced Tuesday.
The plan, which will cost the government an additional 200 billion shillings annually, is designed to address salary disparities and retain workers across the public service. About 230,000 civil servants, whose salaries have been stagnant since 2014, are set to benefit from the new pay rise.
Mukasa said the pay hike will cover all remaining public servants who did not benefit from previous salary enhancements, including arts and science teachers, lecturers, health workers, and judiciary staff. This includes the 60% of public servants who were left out of the last pay-rise phase.
The government aims to harmonize salaries across different categories and levels, correcting distortions created in 2012 when scientists received a 30% increment, causing salary imbalances. The new pay structure will be included in the “Pay Policy” document, approved by the Cabinet in May.
Mukasa noted the government will gradually implement the new salaries over three years, with the process starting this financial year and continuing until 2018-19.
The minister also sought to allay fears that inflation would erode the salary increases. He expressed hope that a salary review commission would be established in the next financial year to regularly adjust salaries in line with inflation trends.
New Pension System to Benefit Retirees
Mukasa also announced that pensioners would benefit from a new contributory pension system. Established under the Public Service Pension Fund Act of 2004, the new system pegs a retiree’s pension to a quarter of their final salary.
This system is intended to replace the current “pay-as-you-go” scheme, where pensions are paid from government revenue. Under the new plan, civil servants will contribute a portion of their salaries, which will be matched by the government, into a pension fund.
Benefits will include a lump sum payment at retirement, an annuity for life, and medical benefits. The scheme is designed to reduce pressure on government spending and clear billions of shillings in outstanding pension arrears.
Workers Express Skepticism Over Promises
While workers’ unions welcomed the announcement, some expressed skepticism over the implementation.
Christopher Kahirita, general secretary of the National Organization of Trade Unions (NOTU), said the government has failed to honor similar promises in the past. He added that workers have been promised pay rises since 2012 without success.
“We hope that this time round, it will be implemented,” Kahirita said. He urged the government to quickly establish a salary review commission to ensure that pay is regularly adjusted in line with inflation and other salary-related issues.
