# Can I claim Salaries, PAYE and NSSF as a business expense in Uganda?

**Yes, fully claimable.** Yes. Salaries and the employer's 10% NSSF contribution are deductible. PAYE and the employee's 5% are deducted from pay and passed to URA and NSSF.

Typical amount: Paid monthly. For an employee paid UGX 1,000,000 a month gross, NSSF is UGX 150,000: UGX 100,000 from the employer and UGX 50,000 deducted from the employee. PAYE is worked out separately at the current bands.

## What Uganda Revenue Authority (URA) says

Employment costs incurred in the business are allowable. The employer withholds PAYE and pays it with the return by the 15th of the following month, and pays NSSF at 15% (10% employer, 5% employee) by the 15th. Every employer must register with NSSF, whatever the number of employees. Keep each employee's TIN or NIN and NSSF number on file, because the returns ask for them.

## When you can claim

- Gross salaries and wages
- The employer's 10% NSSF contribution
- Staff training for the business
- Overtime and allowances paid under the employment contract
- Medical cover the company provides for staff, as your payroll adviser advises
- Casual labour paid through the payroll
- Bonuses paid under the employment contract
- Pay for staff on leave under the employment contract

## When you cannot claim

- PAYE or NSSF that was deducted but not paid over, which stays a liability
- Personal expenses of the owner paid as salary without a contract
- Salaries of staff working for another company
- NSSF penalties for late payment

## Good to know

**Pro tip:** Pay PAYE and NSSF on time: late PAYE filing costs at least UGX 200,000 a month. Send Finn the payroll summary each month. It books salaries, PAYE and NSSF and puts the 15th on your calendar for both.

**Important:** From 1 July 2026 the resident PAYE bands changed (nil up to UGX 335,000 a month). Check payroll uses them. Employers who filed July or August 2026 at the old rates amend those returns.

Source: https://ura.go.ug/en/domestic-taxes/paye-rates/

## Related expenses

- [Accountant, Tax Agent and Legal Fees](https://accounts-os.com/ug/expenses/accountant-fees-uganda)
- [Internet, Phone and Airtime](https://accounts-os.com/ug/expenses/internet-and-phone-uganda)