Former lawmakers say its difficult to get jobs.
A Ugandan parliamentary committee wants former legislators to receive a one-off payment of Ush100 million ($26,000).
Parliament Speaker Rebecca Kadaga told the state-linked New Vision newspaper that the payment was to "recognise the lawmakers' contribution to the development of the nation".
She said that the MPs had already been given $8,000 but that President Yoweri Museveni had said that the amount "was too little".
Ex-lawmaker Othieno Akika said it was difficult for former MPs to get jobs.
Meanwhile, his one-time colleague Angelo Drani is quoted as saying he and his fellow politicians are "in our wee hours of our lives and requesting you to give us assistance".
Lawmakers who served from 1962-2001 are set to benefit from the payment but it is unclear how many they are.
The proposal needs to be approved by President Museveni.