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Uganda’s Farm Paradox: Low Pay, Job Insecurity Threaten Agricultural Workers

The Albertine and Rwenzori regions are rich in Ugandan coffee and cocoa, yet persistent challenges to decent work for farm labourers stifle their productivity and limit farm profitability.

The International Labour Organization (ILO) views decent work as vital for development, noted in Sustainable Development Goal (SDG) 8: “By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.” A positive working environment boosts productivity and enhances farm profitability, contributing to broader economic growth.

An assessment of decent work in the labour market by the Economic Policy Research Centre (EPRC) highlights three interconnected challenges: i) employment insecurity (40%), ii) income instability (70%), and iii) inadequate social protection (90%), as shown in Figure 1. These issues impact workers’ well-being, exposing them to economic uncertainty. Farm workers are navigating informal contracts, irregular pay, and inadequate safety nets for health and retirement. This situation affects individual lives and hinders Uganda’s broader goals for poverty reduction, gender equality, and sustainable rural development.

Only fifteen percent of the agricultural labourers possess written contracts.

In these regions, farm employment is mainly informal. Findings show only 15 percent of workers have a written contract (Figure 2), indicating most lack formal documentation, jeopardising their job security. Without a written agreement, evidence for terms in case of disagreement is minimal, forcing employers and employees to rely on memory, which can be unreliable. One respondent shared, “I have been serving as the SACCO’s treasurer for 3 years, and I didn’t sign any contract. I only receive an allowance of about 30,000 shillings when we have meetings.”

Besides earning meagre wages, farm workers don’t receive paid leave and overtime compensation.

From Figure 3, Income security has an aggregated score of 0.31, which signals challenges in various domains, especially wages, overtime compensation, paid leave, among others. Alongside low wages, farm workers often miss out on the opportunity for paid annual or sick leave. The decent work assessment reveals that just a small portion of workers, around 10 percent, enjoy the benefits of paid annual leave. This highlights a notable gap in achieving decent work standards. Consequently, many households face increased vulnerability and poverty, which hinders economic development.

I am only paid 50,000ugx as my monthly salary, which is very little compared to all the work I do.” “The salary is quite small because I have a family and children to look after…….” “……after working in the coffee and cocoa plantations then we work in the beans and maize gardens.  This makes it hard work and yet I feel the pay is not enough…”

 Additionally, fewer than half of the workers, about 45 percent, feel they’re receiving fair compensation for their hard work (Figure 3). This highlights a common feeling of insufficient pay among employees, as shared by the respondents.

Social Protection: no pension, no health insurance and no paid leave

Formal job contracts and stable wages offer benefits like health insurance and pensions but often fail to support families during health or age-related challenges. This is particularly true for farm workers in the Rwenzori and Albertine regions. The assessment shows that over 95% of farm workers lack pension contributions, only 4 percent have health insurance, and about 11% benefit from paid sick or annual leave (Figure 4). Without social safety nets, these workers face significant vulnerabilities in crises, forcing them to sell assets or borrow, trapping households in poverty.

The Path Ahead

Addressing decent work issues requires a thoughtful, integrated approach. The following can be considered.

  • First, Employers must provide written contracts detailing wages, hours, and termination notice periods to enhance employment security. Strengthening labour inspections and mobile dispute tribunals is crucial for enforcing these agreements and protecting employees from abuses.
  • Secondly, promoting income security requires establishing a minimum wage for agricultural workers that reflects the cost of living. Mobile-money payrolls can ensure timely payments. Additionally, public investments in off-season community projects, like cooperative processing facilities, can provide extra income, reducing reliance on debt and asset sales during the off-season and helping maintain year-round stability.
  • Third, expanding social protection is vital. National pension and health insurance programs should extend to informal farm workers, supported by subsidized contributions through savings cooperatives (SACCOs). Portable micro-pension products for seasonal incomes can fill gaps, while community-based health insurance with NGOs provides immediate relief for medical emergencies.

Conclusion

Uganda’s agriculture sector can drive inclusive rural development. However, without secure contracts, predictable wages, and basic protections, workers remain vulnerable. By formalizing employment terms, stabilizing incomes, and building a robust social safety net, Uganda can transform agricultural labour from precarious work to a foundation of prosperity. Ensuring decent work for farm workers is both an economic and moral imperative, honouring the labour that feeds the nation.

Photo Credit: East African Business Week

Blog Authors: Blessing Atwine, Jude Sebuliba, Madina M Guloba

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