Minister Musasizi Unveils Phased Salary Enhancement Plan, Clarifies PAYE Tax Reforms
Parliament, Uganda – The State Minister for Finance (General Duties), Hon. Henry Musasizi, has outlined a comprehensive phased salary enhancement plan for public servants while dismissing media reports of a sharp increase in the Pay As You Earn (PAYE) tax rate.
Speaking before Parliament, Musasizi detailed the government’s strategic approach to improving remuneration across the public service, revealing that salary enhancements will be implemented progressively from senior officers downward until the lowest-ranking officials benefit.
Phased Salary Increments
According to the Minister, the government has already completed salary enhancements for several categories of public servants. Assistant commissioners and what Musasizi described as “Government” staff have received their increments, with the next phase targeting school principals.
“We have been gradually enhancing salaries of other staff. Government have been enhanced, the assistant commissioners have been enhanced, and next year we are going to enhance the principals, and the other year we shall go to the officers until when we get to the lowest level,” Musasizi stated.
The Minister highlighted a notable salary increase for Chief Administrative Officers (CAOs), whom he noted hold equivalent status to commissioners. CAOs have seen their monthly earnings rise substantially from UGX 1.8 million to UGX 12 million.
“And when I mention commissioners, even the chief administrative officers in districts are at the level of commissioners. They are now earning UGX12 million. They have moved from the previous UGX1.8 million to now UGX12 million,” he added.
Looking ahead to January 2026, Musasizi revealed that Chief Administrative Officers, Uganda People’s Defence Forces (UPDF) officers, and assistant commissioners are among the categories scheduled for further salary enhancements.
PAYE Tax Clarification
The Minister moved swiftly to correct what he termed false media reports suggesting that the PAYE tax rate would increase from 15 percent to 40 percent.
Instead, Musasizi explained that the government’s new proposals focus on adjusting the tax threshold to provide relief to low-income earners. The current threshold requiring individuals to pay PAYE will be raised from UGX 235,000 to UGX 335,000. Consequently, individuals earning below UGX 335,000 will be exempt from PAYE.
He noted that this adjustment will cost the government UGX 96 billion in foregone revenue but represents a deliberate policy choice to ease the tax burden on lower-income citizens.
The government continues to implement these salary enhancement measures as part of broader public service reforms aimed at improving welfare and service delivery across all sectors.
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