OUR GOVERNANCE:

Fair remuneration to promote achievement of strategic objectives

Fair remuneration to promote achievement of strategic objectives

OUR GOVERNANCE:

Fair remuneration to promote achievement of strategic objectives

The Fund’s Remuneration Policy at a glance

Reward objectives

Reward principles

Attract

  • Enable recruitment of the right people

Competitive

  • We assess competitiveness on a total reward basis
  • Rewards reflect role, experience, performance, and contribution
  • Rewards are set with reference to external market practices and internal relativity

Motivate

  • Incentivise employees to deliver and execute strategy

Simple

  • Reward is simple, clear, and easy to understand
  • We avoid unnecessary complexity
  • Rewards are delivered accurately

Recognise

  • Acknowledge individual contribution and performance
  • Create member value and support the achievement of business strategy

Fair

  • Policies are transparent and applied consistently
  • Reward decisions are trusted and properly governed
  • Reward is legal and compliant

Wellness

  • Employee wellbeing is a priority for us

Energised

  • Family health support
  • Comfortable and modern working environment
  • Work like balance
  • Coaching, mentoring, and counselling support

Retain

  • Foster loyalty and retain high-performing employees

Sustainable

  • Flexible reward framework to meet changing business and economic needs
  • Rewards are administered responsibly
Compensation Components

The Fund’s pay structure may include any or all the following: fixed pay, performance-based increments, and variable pay.

Fixed pay

The Fund's fixed pay range is linked to an approved grading system, ensuring fairness, competitiveness, and internal equity.

Performance based increments

Performance-Based Increments (PBI) link pay progression to individual performance assessments. Increments are consolidated into basic pay and vary based on appraisal results, grade positioning, and the pay increment budget. The PBI increases with performance and decreases as one’s pay moves towards the maximum of the grade, as shown below.

Performance rating Position in Range
Q1 Q2 Q3 Q4 Above max
A+ 9.02% 6.01% 3.01% 2.41% 0.00%
A 6.01% 4.01% 2.00% 1.60% 0.00%
B 3.01% 2.00% 1.00% 0.80% 0.00%
C 0.00% 0.00% 0.00% 0.00% 0.00%
D 0.00% 0.00% 0.00% 0.00% 0.00%
Variable pay

The Fund offers annual bonuses to qualifying staff, recognising contributions, retaining exceptional performers, and motivating staff. Bonus amounts are based on performance and overall contributions to the Fund's results.

Benefits

The Fund provides benefits in line with market and regulatory standards, including medical insurance, death benefits, a retirement scheme ("Staff Provident Fund"), an "Annual Service Award" for temporary staff, and a "Gratuity Scheme" for the Executive Committee (EXCO).

Recognition policy

The Fund acknowledges exceptional contributions through financial and non-financial awards to individuals or groups, promoting the Fund's objectives and addressing operational challenges.

Long service incentive

Long service awards recognise commitment and loyalty in 5-year bands, starting from 10 years of service.

Remuneration of statutory appointees

The remuneration for the Managing Director and Deputy Managing Director is based on the same criteria as other employees, with an annual performance review. These packages are approved by the Minister of Gender, Labour, and Social Development.

Annual single total figure of remuneration

Top Management

Salary (Millions)

Benefits (Millions)

Bonus (Millions)

Pension (Millions)

Gratuity (Millions)

Managing Director 887 221 230 307 N/A
Deputy Managing Director 689 111 179 212 137

Non-Executive Directors’ remuneration and terms of engagement

Terms of service

All Non-Executive Directors are provided with a letter of appointment setting out their remuneration. Directors are appointed by the Minister of Gender, Labour, and Social Development for a three-year term, renewable once.

Fees

Non-Executive Directors receive a retainer for their service on the Board and a meeting attendance fee for Board and Board Committee meetings. Fees are paid monthly in arrears. There are no contractual arrangements for compensation for loss of office. Executive Director(s) do not receive any retainer or meeting attendance fee. In determining the remuneration of Non-Executive Directors, the Board considers the extent and nature of their responsibilities, and comparative remuneration offered by other major entities of a similar nature.

The Fund’s remuneration structure

Directors’ fees (UGX) Board Chairman
Annual retainer 153,786,000
Fee per sitting 3,600,000

Director
Annual retainer 121,410,000
Fee per sitting 1,528,000

Board committee
Member (Fee per sitting) 1,350,000

Summary of 2023/2024 Board emoluments

Category of Directors

Board retainer fees & Board sitting allowance

Other benefits

Pension contributions

Total

Year
Non - Executive 890,189,600 582,542,166 62,914,860 1,535,646,626 2020
Non - Executive 1,087,371,400 No other benefits paid 38,649,150 1,126,020,550 2021
Non - Executive 1,062,602,200 417,113,520 47,653,617 1,527,369,337 2022
Non - Executive 1,451,145,000 No other benefits paid 30,115,260 1,481,260,260 2023
Non - Executive 1,535,428,200 230,314,230 nil 1,765,742,430 2024

A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH