In a promising revelation, Finance State Minister Henry Musasizi announced that the Pay As You Earn (PAYE) register in Uganda has witnessed an impressive growth, with 201,215 new employees added.
This development, shared during discussions on the Budget Framework Papers for the Ministry and Treasury Operations, signifies a remarkable 14.1% expansion from 1,422,857 employees in the financial year 2021/22 to 1,624,072 in the financial year 2022/23.
Minister Musasizi attributed this surge to the recovery of formal employment from the adverse impacts of recent economic shocks.
He emphasized that the PAYE register’s notable growth reflects a positive trajectory for the country’s workforce.
PAYE, a tax levied on an employee’s total monthly income exceeding sh235,000, is remitted to the Uganda Revenue Authority (URA) by employers on behalf of their employees.
URA applies tax rates based on the individual’s resident status.
In summary, the substantial increase in the PAYE register points towards a resilient formal employment sector, contributing to Uganda’s economic revival.