1. What is Net Salary Calculation?

Net salary is the amount an employee takes home after all deductions, primarily income tax and NSSF contributions in Uganda. It's calculated by subtracting these mandatory deductions from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Total salary before deductions (UGX/year)
• Income Tax — Progressive tax based on Uganda's tax brackets
• NSSF — National Social Security Fund contribution (5% of salary)

Uganda Income Tax Brackets (2023):

• 0% on first UGX 2,820,000/year (UGX 235,000/month)
• 10% on next UGX 1,200,000/year (UGX 100,000/month)
• 20% on next UGX 900,000/year (UGX 75,000/month)
• 30% on amounts above UGX 4,920,000/year

3. Uganda Tax and NSSF Information

Details: Uganda uses a progressive tax system with different rates for different income levels. NSSF contributions are mandatory for all formal sector employees at 5% of gross salary, with an upper limit.

4. Using the Calculator

Tips: Enter your annual gross salary in UGX. The calculator will automatically compute the income tax, NSSF contribution, and final net pay.

5. Frequently Asked Questions (FAQ)

Q1: What is the tax-free threshold in Uganda?
A: The first UGX 2,820,000 per year (UGX 235,000 per month) is tax-free.

Q2: How is NSSF calculated?
A: NSSF is 5% of gross salary, up to a maximum contribution of UGX 600,000 per year (UGX 50,000 per month).

Q3: Are there other deductions not included here?
A: This calculator includes only mandatory tax and NSSF. Other deductions like loan repayments or medical insurance would further reduce net pay.

Q4: How often are taxes calculated?
A: Taxes are calculated monthly using the annual brackets divided by 12.

Q5: Is this calculator accurate for all employment types?
A: This is designed for standard employment. Self-employed individuals and contractors may have different tax obligations.