Department of Compensation


Overview, Mandate, Vision

Under the Directorate of Human Resource Management, which is currently headed by Ag. Director Mr. Ojok Thomas

The Department is headed by Mr. Bua Victor Ag. Commissioner  – Compensation.

Mandate of the Department

To provide policy direction, supervision and technical support for the efficient and prudential management of the wage bill, payroll, pension and gratuity in the Public Service.

Objectives of the Department

  1. To provide technical and function support to MDA/LGs for the effective and prudential management of the decentralized salaries, pension and Gratuity;
  2. To establish a funded Defined Benefit (DB) Public Service Pension Scheme for a sustainability and efficient pension system;
  3. To provide for the proper management of terminal benefits in the Service and ensure timelines in Processing and payment of pension and Gratuity in accordance with Article 254 of the Constitution, the Pensions Act Cap 286 and any other laws;
  4. To provide for the proper management of the wage bill and the payroll to ensure timeliness, adequacy and elimination of ghosts and resource wastage
  5. To coordinate Pre and post retirement programs and ensure smooth transition from active payroll to the pension payroll and provide for adequate planning for retirement;
  6. To facilitate the efficient and effective management of pension records

Functions of the Department of Compensation

Following the decentralization of pension and payroll management to Ministries, Departments and Agencies and Local Governments, and in line with the approved and adopted structures of the Ministry of Public Service, the functions of the department has changed considerably to among others include:-

  1. Initiating policies, reviewing and guiding in the management of remuneration/ compensation in the service;
  2. Supporting MDA/LG in the preparation of annual budget estimates for wage, pension and gratuity and consolidating the annual wage bill of government;
  3. Receiving, capturing, analyzing and clearing requests to fill vacant positions in MDA/LGs
  4. Authorizing retirement requests, computation and payment of terminal benefits;
  5. Granting request for early retirement and retirement on marriage grounds;
  6. Varying any conditions/ provisions of the Pensions Act and implementing the provisions on terminal benefits as provided under the 4th Schedule to the Pensions Act Cap 286;
  7. Providing functional and technical support to MDA/LG to ensure timely, efficient and professional processing and payment of salaries, pension and gratuity.
  8. Building the capacity of MDA/LG to implement the decentralized management of salary, pension and gratuity.
  9. Supporting MDA/LG to undertake regular review and verification of pensioners and claimants.
  10. Monitoring the implementation of the decentralized management of salaries, pension and gratuity.
  11. Developing and implementing programmes for automatic transition of staff from the active payroll to the pension payroll.
  12. Carrying out assessment of pension and other terminal benefits in a transparent manner to ensure its prudential management.
  13. Carrying out awareness programmes on the processes and procedures for accessing pension across all MDAs/LGs.


  1. Cabinet information paper was presented on the status of the PSPF Bill;
  2. Zero draft of the PSPF Bill was prepared;
  3. Draft Board selection guidelines were developed;
  4. Statutory Instrument on Revalidation was prepared and issued.
  5. 3512 retirees were trained from Office of the President, MoDVA, Ministry of Lands Housing and Urban Development, UPDF and Mbale RH trained on Planning
    for retirement.
  6. 203 votes supported in Decentralized Management of salary Pension and Gratuity.
  7. Curriculum and training materials for pre and post retirement training was developed;
  8. Pre retirement training was conducted for 3512 retirees trained from Office of President, MoDVA, Ministry of Lands, UPDF and Mbale RH.

Planned Outputs

  1. Public Service Pension Fund legal and Institutional Framework set up
  2. Pre Retirement Trainnings Conducted for 3,000 Retirees in the MDAs and LGS to live and Dignified Life After Retirement.
  3. Capacity of 20 MDAs and 60 LGs Built in Decentralised Management of Pension and Gratuity.
  4. Post and Pre Retirement Programmes Developed and Implemented in the MDAs and LGs.
    Output: Management of the Public Service Payroll and Wage Bill


  1. 79 Recruitment Plans were received from LGs and MDAs
  2. Payroll Deductions Management guidelines were developed and disseminated to 135 MDAs and 162 LGs ;
  3. Salary structure for FY 2018/19 was prepared and disseminated.
  4. Implemented recommendations from the Internal Audit report of Q.1, Q.2 ad Q.3 .
  5. 189 LGs trained and guided in wage bill, Payroll, Pension and Gratuity Management.
  6. Payroll Management guidelines were reviewed and disseminated to 135 MDAs and 162 LGs;
  7. IPFs disseminated to 135 MDAs and 162 LG

Planned Outputs

  1. Recruitment Plans for FY 2018/19 for all MDAs and LGs cleared .
  2. Recruitment Plans for MDAs and LGs for FY 2018/19 cleared .
  3. Payroll Deductions Management Guidelines Developed and Disseminated to MDAs and LGs.
  4. Salary Structure for FY 2018/19 Developed and Disseminated to MDAs and LGs.
  5. 207 Payroll Managers Trained in Payroll and Deduction Management;
  6. Recommendations from Audit (OAG & IA) , Investigation (CID & IGG) and Monitoring Reports (MOPS & MoFPED) on Payroll Management Implemented and Progress Reports Prepared.
  7. Technical Support Provided to 34 MDAs and 135 LGs on Implementation of Payroll Policies and Guidelines.
  8. Capacity for Two Staff Built in Payroll and Wage Bill Management.
  9. Payroll Management Policies and Guidelines Reviewed and Disseminated to MDAs and LGs;
  10. Pension and Wage Analysis Undertaken and IPFs Disseminated to MDAs and LGs.