Hiring Employees in Ethiopia
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Spoken Language
English is the official language, and Oromifa, Tigrigna and Somali are the major recognized languages.
Currency
Ethiopian Birr (ETB)
Average hours & Overtime
Regular hours and overtime pay rates are set in the labour law and the same is reflected in the employment contracts. Stipulated work hour is a maximum of 48 hours per week (5/5.5 days) excluding 1 hour lunch break.
Wages and salaries
There is no minimum wage rate
Observed National Holidays and vacation
13 paid holiday per annum:
Ethiopian Christmas;
Epiphany
Victory Day of Adwa
Birthday of the Prophet Mohammed (Maulid)
Good Friday
Easter
International Labor Day
Patriots Victory Day
Downfall of the Dergue
New Year
Finding of the True Cross (Meskel)
Id Al Fater (Ramadan)
Id Adha (Afafa)Any other holiday declared by the government through a press release statement
Paid Leave
A minimum of 16 paid annual leave days are granted to employees per year. Maternity leave is a minimum of 16 weeks paid leave while paternity leave is optional.
Expats, Visas, & Work Permits
Employers are responsible for obtaining work & residence permits for their expatriate employees. Foreign investors must be granted expatriate quota approval to employ expatriates.
Termination Notice
Notice period depends on the contractual agreement but ranges from 1 -2 months depending up on the position and year of service.In any case other than the above, employer shall give one month notice or one month salary in lieu of notice and the same apply for an employee.
Statutory Deductions
Statutory payroll deductions include:
∙ Pension Contribution (7%)
∙ PAYE (as per the tax calculation rate)
Health Insurance
Provision of health insurance (GPA/Workmen’s/Life) for employees is a common practice and the minimum is mandatory.
Important Information
Local employee who passes 60 days probation period is considered as a permanent. The Employment contract could be terminated anytime without a prior notice before the end of the probation period.
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