Hire and pay employees in
Ethiopia, hassle-free

There is no minimum wage by Law in Ethiopia.

The employer cost is generally estimated at 11% of the employee salary.

• Pension - 11%

Standard working hours are 8 hours per day, 48 hours per week. The standard work week is from Monday to Saturday.

Employees are entitled to 120 days of paid leave. 30 days must be taken before the child's birth. The remaining days will be taken after the child’s birth. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.

Employees are entitled to 3 days of paid paternity leave, starting on the day following the birth of the child. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay. 

In Ethiopia, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Employees are entitled to paid sick leave for up to 6 months, which can be taken upon the presentation of a medical certificate. The pay rate for this leave varies depending on its duration:

• Month 1: 100% pay, covered by the employer
• Months 2 and 3: 50% pay, covered by the employer
• Months 4-6: No pay

Terminations in Ethiopia are moderately complex. There is no at-will termination in Ethiopia for employers [outside the probation period] and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Redundancy or other business reasons
  • Performance due to unsuitability for the job
• By expiration of the contract

The minimum notice period is 30 days and will be increased according to the length of employment:

• 30 days if the length of service is less than one year
• 60 days if the length of service is 1-9 years
• 90 days if the length of service is more than 9 years
• During the probation period: no notice

Severance pay will depend on the length of the employment and can vary based on the reason for the termination. 

• First Year of Service:
  • Employees will receive thirty times the average daily wages of the last week of service for the first year of service.
  • For service of less than one year, the compensation will be calculated proportionally based on the period of service.
• More Than One Year of Service:
  • For each additional year after the first year, employees will receive an additional one-third of their basic monthly salary.
    The total termination compensation will not exceed twelve months’ basic salary.
• Termination Due to Bankruptcy or Workforce Reduction: In cases of termination due to bankruptcy or reduction of workforce, employees will receive an additional amount equal to two months' basic salary on top of the standard termination compensation.

Both full-time and part-time employees are entitled to 16 working days of paid time off (PTO) after the first year. This increases by one day for every additional 2 years of service. PTO accrues monthly at 1,33 days per month during the first year. Employees are eligible for annual leave after 12 months of work. 

Ethiopia celebrates 13 national holidays.

National public holidays include:

• Ethiopian Christmas Day
• Timkat
• Adwa Victory Day
• Eid al-Fitr: 
• International Labor Day
• Ethiopia Good Friday
• Fasika 
• Patriots Victory Day
• Derg Downfall Day
• Eid al-Adha 
• Ethiopian New Year
• Mawlid 
• Meskel

Contracts can be in English or bilingual. They must be in writing and signed by both parties.

A contract must include:

• Employee name
• Employee address
• ID number
• Start date
• Compensation
• Length of the employment
• Job description
• Probation period
• Notice period
• Termination conditions