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Home Editorial

Pension Crisis Looms as Science-First Pay Policy Reshapes Uganda’s Workforce

Insight Post Uganda by Insight Post Uganda
February 10, 2025
in Editorial
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Pension Crisis Looms as Science-First Pay Policy Reshapes Uganda’s Workforce

Activists have raised alarm over the Ugandan government’s science-first policy, which prioritises higher salaries for civil servants in science-related fields while leaving their counterparts in the arts and humanities behind.

The policy, aimed at retaining skilled personnel in key sectors, appears to be having unintended consequences, with growing numbers of beneficiaries resigning instead of staying in service.

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A new audit report by the Auditor General (AG) on financial statements for government ministries, departments, and agencies for the financial year 2024 has brought the issue into sharp focus.

The Civil Society Budget Advocacy Group (CSBAG) warns that the trend could escalate into a broader crisis, affecting not just the education sector but also the country’s already strained pension system.

CSBAG Executive Director Julius Mukunda cautioned that in the medium and long term, Uganda risks losing experienced civil servants at an alarming rate.

Instead of encouraging retention, he argued, the significant salary increments have led some science professionals to retire early, taking advantage of generous pension benefits.

“The government should urgently review the salary structures and terms for in-service officers to ensure that the pension system does not strain public resources,” Mukunda said.

He highlighted the disparity in earnings, noting that diploma-level science teachers saw their salaries jump from UGX 900,000 to UGX 3 million, while graduate science teachers now earn UGX 4 million, up from UGX 1.2 million. In contrast, arts-based teachers have remained at the same salary level.

Mukunda further illustrated the financial implications, revealing that a science teacher retiring under the current system is entitled to a gratuity of UGX 172 million and a monthly pension of UGX 1.92 million.

By comparison, an arts-based teacher receives UGX 46.5 million in gratuity and a monthly pension of UGX 517,518.

Pension Sector Under Strain

With science teachers opting for early retirement in significant numbers, the pension sector is facing new pressures. Uganda’s pension system has long been plagued by inefficiencies, including ghost pensioners, an unverifiable payroll, and underfunding.

The Auditor General’s report revealed that in 2024 alone, 5,649 retirees were excluded from the pension payroll, while nearly 5,000 pensioners had been waiting between one to twenty years to be added to the system.

Many have suffered financial distress, with some reportedly dying before receiving their benefits.

Mukunda and fellow economists Kenneth Asiimwe and Pascal Muhangi have urged the government to expedite the inclusion of qualified pensioners on the payroll and streamline verification processes to prevent further suffering.

Political Implications

When contacted for comment, Minister of State for Higher Education John Chrysostom Muyingo acknowledged the concerns but defended the policy’s intent.

“I have not seen the document (AG’s report) you are talking about to enable me to make an informed observation. But I think it would be counterproductive if the President’s good intention of increasing salaries for science teachers has that effect,” Muyingo said.

“You will agree with me that the country has been having a shortage of those people (science teachers), but if we are going to lose them, especially those with experience, that would be unfortunate. I know it is their right, but it is not good for the country,” he added.

To mitigate the crisis, the Ministry of Public Service recently imposed a moratorium on voluntary retirement before reaching the official retirement age.

Mukunda, however, warns that this decision could face legal challenges, further increasing financial liabilities for the government.

Pension Mismanagement

Uganda’s pension sector has faced numerous scandals over the years, with billions of shillings meant for retirees disappearing in corruption schemes.

In 2012, a high-profile investigation uncovered one of the country’s largest pension frauds, leading to the conviction of three senior officials: Christopher Obey, the Chief Accountant at the Ministry of Public Service; Kiwanuka Kunsa, the Director for Research and Development; and David Oloka, a Senior Accounts Assistant.

An asset audit by the Inspector General of Government (IGG) found that the three had amassed massive wealth within a short period, confirming their role in siphoning pension funds.

They were later sentenced to various jail terms, yet systemic pension challenges persist to this day.

With Uganda’s 2026 general elections approaching, the government’s handling of salary structures and pension reforms is likely to become a heated topic in political debates.

Critics argue that a more balanced approach is needed to prevent further discontent among civil servants, while also ensuring fiscal sustainability.

For now, the government faces a tough balancing act, between rewarding science professionals, retaining experienced civil servants, and safeguarding the future of Uganda’s pension system.

END

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