Public Servants to Join New Contributory Pension Scheme in 2027

What the report says

Uganda’s government plans to roll out a new contributory Public Service Pension Scheme from July 1, 2027, replacing the current non-contributory arrangement for most public servants. Under the plan reported by Nile Post, employees will pay 5 per cent of their basic salary while the government will add 10 per cent, with the scheme established under the Public Service Pension Fund law.

The reform is set to cover workers in central and local government, the teaching service, Uganda Prisons and other agencies not already in a separate pension scheme. Public servants under 55 years would be enrolled, while those 55 and older could choose whether to join or stay in the existing system. The Ministry of Public Service said current pension rights will be protected, and service earned before the change will still be recognized.

According to the report, the government says the change is meant to address delays in pension payments and improve long-term funding for retirement benefits. The new arrangement will keep the current pension formula and retirement age of 60, but contributions will be invested to support future payments. Employees who leave service before qualifying for a pension may be able to recover their own contributions, subject to the law.

The ministry has asked accounting officers to prepare records, budgets and staff sensitization ahead of the transition. More broadly, the move reflects a wider push in Uganda to make public pension financing more sustainable while preserving lifetime benefits for qualifying retirees and their dependents.