Ethiopia

• Coptic Christmas Day
• Orthodox Epiphany
• Victory of Adwa
• Siklet
• Coptic Easter Sunday
• Eid al-Fitr
• Labour Day
• Patriot's Victory Day
• Downfall of the Derg
• Eid al-Adaha
• Ethiopian New Year
• Meskel
• Moulid

Working Hours

Employees can work up to 8 hours a day, or a maximum of 48 hours per week.

Minimum Wage

There is no legal minimum wage in Ethiopia, though some institutions and sectors may set their own minimum wage.

Employee Tax

Monthly income	Tax rate*
Up to ETB 600	0%
ETB 601 - 1,650	10%
ETB 1,651 - 3,200	15%
ETB 3,201 - 5,250	20%
ETB 5,251 - 7,800	25%
ETB 7,801 - 10,900	30%
More than ETB 10,900	35%
Pension fund contribution	7%

*May also be subject to a deductible fee.

Bonuses

There are no statutory bonus schemes in Ethiopia.

Employment contracts in Ethiopia should be written and signed by both parties. They should include:

• Employer details
• Employee name, age, address, and work card number
• Job title and responsibilities
• Workplace
• Working hours
• Salary
• Contract length

Both indefinite and fixed-term contracts are permitted in Ethiopia.

Annual Leave

Minimum of 14 days' paid holiday after one year of service, rising to 18 days after five years.

Sick Leave

Up to 6 months' paid sick leave. A medical certificate must be provided.

Parental Leave

• Maternity leave: at least 90 days' fully paid leave.
• Paternity leave: none.

Termination Process

Employers in Ethiopia can terminate a contract provided they give notice and/or compensation in line with legal requirements.

There also several grounds for termination without notice, including:

• Repeated tardiness
• Absence without cause
• Fraud
• Theft
• Low performance
• Brawling or quarrelling.
• Intentional damage to property or damage through neglect
• Intoxication at work

Employees can also end a contract by giving at least 30 days' notice.

Severance Pay

Employees are entitled to 30 days’ wages per year of service (or pro rata if they have less than one year’s service), then 10 days’ wages for every additional year of service. Redundant workers are entitled to 60 additional days’ wages.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.