By Berna Nansubuga
The Ministry of Public Service is set to introduce a new pension scheme for civil servants, a move aimed at addressing longstanding financial arrears and ensuring smoother retirement payouts.
Permanent Secretary Catherine Bitarakwate Musingwiire explained that under the proposed plan, both government and employees will contribute to the pension fund.
“The government will contribute 10%, while the employee contributes 5%. In total, 15% of the employee’s salary will be invested in various sectors to generate additional returns. This approach will help the government pay pensions without difficulty,” she said.
Currently, Uganda’s civil servants are covered under a government-managed pension scheme, largely funded from the national budget.
Pension payments have often been delayed, leading to accumulating arrears.
Some public institutions, however, such as Makerere University, operate their own semi-autonomous pension funds.
These institutions manage contributions from staff independently, allowing for potentially more flexible and timely retirement benefits.
In contrast, the National Social Security Fund (NSSF) covers the general workforce, requiring employees and employers to contribute a fixed percentage of monthly salaries.
Civil servants do not typically contribute to the NSSF, which operates as a defined-contribution scheme where members accumulate savings over time, earning interest until retirement.
Bitarakwate Musingwiire emphasized that the new dual-contribution model, with both employee and government input, will create a more substantial and sustainable fund, offering workers a more comfortable retirement.
“Previously, we were unable to pay all retired workers on time, and many are still demanding their dues. This approach ensures a more reliable pension system,” she said.
The government is also rolling out a digital e-recruitment platform for public service positions, designed to minimize human interaction and curb corruption linked to job application processes.
“This system reduces opportunities for bribery, which often results in unqualified appointments, and allows applicants to track their status in real time,” she added.
The Ministry of Public Service discussed the pension plan during the Program for Political Leadership Committee meeting held on 14th August 2025 at the National Archives Centre.
The government has managed to clear most existing pension obligations, having distributed over Shs 2 trillion under the Pension Disbursement Mechanism.