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Government Tightens Hiring, Raises Wage Bill to Shs9.7 Trillion, Rolls Out New Pension Fund For Public Servants

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Government Tightens Hiring, Raises Wage Bill to Shs9.7 Trillion, Rolls Out New Pension Fund For Public Servants

by Walakira John
3 months ago
in NEWS
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Government Tightens Hiring, Raises Wage Bill to Shs9.7 Trillion, Rolls Out New Pension Fund For Public Servants
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By Ben Musanje

The government has unveiled sweeping human resource reforms for the 2026/2027 financial year, backed by a Shs9.708 trillion wage bill and the rollout of a new Public Service Pension Fund, under a framework aimed at improving accountability, strengthening service delivery and modernizing Uganda’s public service.

The reforms were announced on Thursday by the Minister of Public Service, Gen. Edward Katumba Wamala, during a press conference at the Uganda Media Centre in Kampala, where he presented Circular Standing Instructions/Establishment Notice No.3 of 2026, outlining guidelines on human resource management in the public service for the 2026/2027 financial year.

Addressing journalists, Gen. Katumba, who recently assumed office as Minister of Public Service from the Works and Transport Ministry, said the reforms demonstrate government’s commitment to building a professional, efficient, accountable and citizen-centred public service capable of responding to the needs of Ugandans.

He said the establishment notice goes beyond routine administrative directives, describing it as part of a broader government reform agenda designed to strengthen discipline, improve service delivery, safeguard public resources and enhance the efficiency of government institutions.

According to the minister, the guidelines cover key areas including payroll management, wage bill controls, pension and gratuity administration, performance management, human resource development, records management, institutional structures and other human resource operations for the 2026/2027 financial year.

A key highlight of the reforms is the increase in the public service wage bill from Shs8.621 trillion in the 2025/2026 financial year to Shs9.708 trillion in the 2026/2027 financial year, representing an increase of Shs1.088 trillion.

The minister noted that the current wage bill reflects significant growth compared to the Shs4.2 trillion wage bill recorded in the 2018/2019 financial year when government adopted its long-term salary enhancement policy.

Gen. Katumba said the additional funding will facilitate payment of staff already in service, recruitment into critical vacant positions and phased salary enhancements for selected categories of public officers.

The beneficiaries of the salary enhancement include Deputy Chief Administrative Officers, Deputy City Town Clerks, City Division Town Clerks, Assistant Commissioners, Heads of Department in local governments, public officers on salary scale U2, primary school head teachers, deputy head teachers and senior education assistants, as well as secondary school teachers with humanities backgrounds.

Also earmarked for salary improvements are heads of Technical and Vocational Education and Training (TVET) institutions teaching humanities, instructors and tutors in humanities, ferry captains and operators, grader operators, mortuary attendants and X-ray attendants.

Gen. Katumba assured public servants not covered in the current phase that government remains committed to implementing salary enhancements in phases, with the remaining categories expected to benefit during the 2027/2028 financial year.

Despite the increased wage allocation, the minister stressed that government would maintain strict wage bill discipline.

He announced that recruitment during the 2026/2027 financial year will only be undertaken after obtaining clearance from the Ministry of Public Service and confirmation that both vacancies and wage provisions exist on the approved establishment.

He warned that officers recruited without the ministry’s approval will not be cleared onto the government payroll, saying the measure is intended to eliminate unauthorized recruitment, prevent wage shortfalls and avoid unnecessary financial obligations.

At the same time, Gen. Katumba urged accounting officers with approved staffing structures and available wage budgets to immediately seek recruitment clearance to avoid leaving wage allocations unspent while creating employment opportunities for Ugandans.

Another major reform announced is the operationalization of the Public Service Pension Fund established under the Public Service Pension Fund Act, 2025, which repealed the old Pensions Act.

The new law establishes both the Public Service Pension Fund and the Public Service Pension Scheme, providing for pension contributions, investment of retirement savings and payment of retirement benefits.

The scheme will cover public officers employed on permanent and pensionable terms, including staff in ministries, local governments, the teaching service, health service, Uganda Police Force and Uganda Prisons Service.

The minister assured serving officers and pensioners that the reforms are intended to strengthen retirement security rather than reduce benefits.

He explained that pensioners who retired under the previous arrangement will continue receiving their payments directly from the Consolidated Fund, while officers transitioning to the contributory scheme will have their accrued pension rights protected through a Government Retirement Bond that will be redeemed upon retirement.

To facilitate implementation of the new pension scheme, all responsible officers have been directed to update employee records on the Human Capital Management (HCM) system, including national identification numbers, dates of birth and dates of first appointment.

The updated information will be used to determine accrued pension liabilities, register members and support migration to the new pension fund.

The minister announced that pension contributions will commence on July 1, 2027, with government contributing 10 percent and employees contributing 5 percent, provisions that institutions must budget for during the 2027/2028 financial year.

The establishment notice also introduces tighter controls over human resource policies across government agencies, boards and commissions.

Under the new guidelines, no institution will be allowed to implement new human resource policies before they are reviewed by the Public Service Commission, technically cleared by the Ministry of Public Service, legally approved by the Ministry of Justice and Constitutional Affairs and finally endorsed by Cabinet.

Existing human resource manuals must also be submitted for verification and harmonization within 30 days from July 1, 2026.

Government is also replacing traditional staff appraisal methods with the Balanced Scorecard performance management framework supported by the Human Capital Management System.

Under the reforms, appointing authorities will no longer accept manually prepared appraisal reports for promotions, confirmations or contract renewals, a move aimed at improving accountability and ensuring performance assessments are objective and linked to institutional results.

To improve service delivery, all ministries, departments, agencies and local governments have been directed to prepare five-year Client Charters aligned to the Fourth National Development Plan, while public health facilities must display Patient Charters outlining service standards expected by citizens.

The ministry also announced measures to strengthen workforce planning, requiring institutions to prepare annual human resource plans, conduct training needs assessments and develop five-year capacity-building plans.

Funding for staff training will only be approved where institutions have verified capacity-building plans aligned to their mandates and national development priorities.

On records management, government has designated the Electronic Document and Records Management System (EDRMS) as the primary platform for managing official records, directing all ministries, departments, agencies and local governments to phase out paper-based and standalone systems while strengthening information security and digital record management.

The ministry also reaffirmed its role as the central authority responsible for approving institutional structures, staffing norms and job specifications.

Under the Rationalization of Government Agencies and Public Expenditure (RAPEX) programme, affected ministries have been instructed to fast-track staff absorption, payment of terminal benefits and pending legislative processes before the end of August 2026.

Government further announced progress on establishing Service Uganda Centres, which will consolidate multiple public services under one roof. In partnership with NITA-U, regional centres in Kampala, Mbarara, Gulu and Tororo are expected to become operational after remodeling of selected government office buildings.

The ministry also confirmed that the ongoing national review of local government structures, last revised in 2016 for districts, municipalities and town councils and in 2022 for cities, will continue until the end of June 2027, with local governments expected to submit staffing challenges and structural concerns.

Gen. Katumba said the Civil Service College Uganda will continue supporting induction programmes, professional development and research for public officers, urging ministries and local governments to utilize its training programmes in leadership, procurement, budgeting, communication, strategic planning and gender-responsive planning.

He called upon accounting officers, responsible officers, service commissions, agencies, boards, commissions and local governments to study the new establishment notice carefully and ensure full implementation within the prescribed timelines.

“The Ministry of Public Service will continue to provide technical guidance, monitor compliance and support institutions to implement these reforms in a coordinated and practical manner,” the minister said.

The detailed Circular Standing Instructions/Establishment Notice No.3 of 2026 is expected to be issued shortly.(For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).    

 

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