The Federation of Uganda Employers (FUE) held its 44th Annual General Meeting at Hotel Africana in Kampala on Friday, March 24, 2023 during which a number of activities ensued like; the reelection of National Water and Sewerage Corporation-MD, Dr. Eng. Silver, Mugisha as the Chairperson.
The discussion about the Living wage for workers was rather significant too.
Note that “a living wage” could be described as the minimum amount of income that a worker needs to meet their basic needs such as food, shelter, healthcare, and education, without experiencing poverty or economic hardship. In Uganda, the living wage varies depending on the region, occupation, and family size.
According to a study by the Uganda Bureau of Statistics, the average monthly expenditure of a Ugandan household is about UGX 902,000 (approximately USD 245) for a family of five. However, the minimum wage in Uganda is set at UGX 130,000 (approximately USD 35) per month, which is below the living wage.
As a result, many workers in Uganda, particularly those in the informal sector, struggle to make ends meet and may resort to working long hours or multiple jobs to supplement their income. The government has been taking steps to address this issue by increasing the minimum wage and promoting policies that aim to improve the standard of living for workers.
In his address during the meeting, Dr. Eng, Mugisha asserted that the living wage for workers in Uganda is a good concept but not an easy equation to balance owing to recent economic dynamics. He said that the much sought-after living wage of workers is a very good concept and it is much better than the minimum wage.
“The minimum wage basically tries to depend on benchmarking by looking at what other countries have done and try to copy and use it in your country,” Dr Mugisha said.
He added, “The living wage is much more a meaningful concept. We know the things anybody would need to live; like to be able to pay for water, afford housing, and pay school fees for your children. It is not something that will happen just like that, it needs to be discussed, so that we can have the parameters for it so that we can see both workers and employers win.”
Mr. Medard Sseggona Lubega, the MP for Busiro East in Wakiso District said the issue of living wage for workers is a matter that has been controversial over the years and employers need to determine it finally.
“A minimum wage as per the current living standards is very difficult but a living wage is not possible in Uganda. We need to benchmark and see how other countries are doing it or manage. Before the living wage comes in, it is upon us, it is upon us citizens to see how we can navigate with the little that we earn,” Mr Sseggona said.
Meanwhile, Dr. Mugisha underscored the importance of Technical education and said wants more Ugandans to acquire technical skills to bolster the labour market.
He said the federation would work with partners such as national water that are already working with refugees to supply them with water.
“We want to see how the skills of these people can be utilized to help in the employment market,” he said, adding that “We have helped them acquire skills and got certificates so that they are able to join the labour market, this is a good thing because they were not able to work because their skills were not recognized, the federation came in and has achieved that.”
