According to a recent research, Uganda’s minimum wage has been appalling while the majority of the population struggles to pay for necessities.
In Uganda, 6 out of every 10 households earn less than $100 per month. This is true despite the country’s rising cost of living.
The National Labor Force Survey (NLFS) 2021 of the Uganda Bureau of Statistics provided the data. Micheal Ogen, the principal statistician for the Uganda Bureau of Statistics (UBOS), was questioned after the report’s presentation in Kampala and disclosed that 50% of working Ugandans make less than Shs200,000 per month.
According to him, 50% of Ugandans who work for a living make less than Shs200,000, which is accurately reflected in our data.
This percentage, nevertheless, does not totally capture the level of contentment among Uganda’s workforce, as the same poll showed that many workers appear content with their jobs despite receiving poor pay.
This creates an anomaly in the employment market because the study also reveals that 49% of people of working age were not employed and that 45% were discouraged and didn’t look for work.
These disappointing results just point out that a lot of people are discouraged from even looking for employment because of the salary level, but those who do are generally content with the fact that they are at least making some money, which is a double-edged economic sword.
The country’s industrial sector needs to be developed, according to Mr. Patrick Ocailap, the deputy secretary of the Treasury, in order to address the issue of low salaries.
He also mentioned that the government’s inability to address the severe dearth of jobs is another major issue with wages. As a result, it is up to private institutions to build a vibrant labor market that is both competitive and productive in order to support the economy. In this, it is the responsibility of the government to develop policies that encourage the expansion of private businesses.
“Incentives to enhance payments will follow suit after the private sector does well as a result of the policies that will drive growth,” he said.
“The government is attempting to carry out its mandate. I can predict that the wage issue will be resolved in five years thanks to the Parish Development Model, which would have made $5 trillion available to improve production along with other helpful government initiatives. Added he.