As Uganda joins the world in commemorating Labour Day, the longstanding debate over a national minimum wage has flared once again.
At the heart of the renewed conversation, Gender, Labour, and Social Development Minister Betty Amongi has called for a cautious and consultative approach.
Amongi acknowledged the legitimacy of demands for fair and dignified wages but warned that Uganda’s economic structure—dominated by an informal sector and narrow business margins—requires nuance rather than a blanket wage policy.
“The delay in implementing a national minimum wage is intentional,” she said.
“We are engaging with stakeholders to develop sector-specific wage frameworks that reflect the realities of our economy while protecting workers’ rights.”
Her remarks come amid fresh pressure from labour unions and civil society organisations, who argue that inaction has left many workers trapped in exploitative conditions.
Still, Amongi cautioned that enforcing a universal minimum wage could strain struggling enterprises and carry unintended consequences for employment levels.
Douglas Opio, CEO of the Federation of Uganda Employers (FUE), restated the group’s support for minimum wage legislation.
He argued that poor pay reduces motivation and productivity, pointing to Kenya, Rwanda, and Tanzania—countries with existing wage floors—as models Uganda could emulate.
But legal analyst Rashid Ssemambo warned against rushing reform.
“We must ensure that such a policy doesn’t backfire by hurting the very workers it aims to help,” he said, noting the potential for increased business costs to limit hiring or even lead to layoffs.
The government’s deliberations reflect a broader tension between economic pragmatism and social protection.
For many workers, Labour Day is not only a moment of recognition but also a reminder of the urgent need for policies that safeguard both livelihoods and enterprise viability.
As consultations continue, the road to a minimum wage remains uncertain—but hopes persist for a compromise that can bridge Uganda’s economic realities with its social aspirations.