Government Clarifies Hard-to-Reach Allowances for Local Government Public Servants

The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, has clarified that not all public servants operating in designated hard-to-reach districts are entitled to hardship allowances.

Addressing Parliament, Musasizi explained that the allowance is specifically meant for public officers deployed in remote, underserved areas where the government faces persistent challenges in attracting and retaining skilled workers. Civil servants stationed at district headquarters, cities, and town councils are excluded from receiving these payments.

The hardship allowance was introduced under the Public Service Reform Programme to combat staffing shortages caused by geographical isolation, insecurity, and poor infrastructure. The policy calculates the allowance at 30 percent of the approved salary structure from the 2017/2018 financial year, rather than current salaries.

Despite the clarification, several Members of Parliament questioned the exclusion criteria. Lawmakers such as Hon. Bruce Balaba, Hon. Annet Katusiime, and Hon. Alfred Edakasi highlighted isolated sub-counties and island communities—such as areas surrounding Lake Bunyonyi and Kaberamaido peninsulas—where teachers and civil servants face severe transport challenges yet receive no hardship benefits. In response, Minister Musasizi agreed to take these concerns back to Cabinet for further review.

The minister also addressed the taxation of local government councilors’ allowances following concerns raised by Kole North MP, Hon. Samuel Opio. Musasizi stated that councilors whose only source of income is their allowance should be exempted from Pay As You Earn (PAYE) deductions. He described blanket taxation by the Uganda Revenue Authority as an error and promised engagement with relevant authorities to streamline the process.

Read the full report on Parliament of Uganda.