The robust output feedback stabilization problem for state-delayed systems with time-varying delays and saturating actuators is addressed here. The systems considered are continuous-time, with parametric uncertainties entering all the matrices in the system representation. A saturating control law is designed and a region of initial conditions is specified within which local asymptotic stability of the closed-loop system is ensured. The least conservative approach that employs the Lyapunov-Krasovskii functional is adopted to ensure stabilization. The designed controller is dependent on the time-delay and its rate of change. The controller is constructed in terms of the solution to a set of matrix inequalities.