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How To Hire New Remote Employees | Ethiopia

Hire employees in

Ethiopia

, easily

Whether you're looking for an independent contractor, a remote team member, or a full-time employee in

Ethiopia

, Workpay can help. Say goodbye to worrying about local laws, complex tax systems or managing international payroll. We take care of it all in over 50 countries.

Book a discovery call
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Country flag

How To Hire New Remote Employees | Ethiopia

Hire employees in

Ethiopia

, easily

   Whether you're looking for an independent contractor, a remote team member, or a full-time employee in

Ethiopia

, Workpay can help. Say goodbye to worrying about local laws, complex tax systems or managing international payroll. We take care of it all in over 50 countries.

Book a discovery call
Hire employees in
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, hassle-free

With Workpay, your business can easily hire employees in

Ethiopia

.
No more worrying about local laws, complex tax systems or
managing international payroll. Workpay takes care of everything
in 150+ countries.

Book a discovery call
capital city
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currency
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language spoken
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payroll frequency
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employer taxes
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vat - standard rate
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cost of living index
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gdp - real growth rate
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termination process
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employee protections
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Overview

Ethiopia, with a population of over 115 million as per 2020, is Africa's second most populous country in Africa. Ethiopia has been one of the world's fastest growing economies over the last 15 years at an average of 105 per year. Among other reasons, capital accumulation, particularly through public infrastructure projects, drove growth. The agriculture sector employs over 70% of the population and was unaffected by the COVID-19 epidemic.

capital city
Addis Ababa
currency
Ethiopian birr (Br, ብር,)
language spoken
Amharic
payroll frequency
Monthly
employer taxes
11%
vat - standard rate
15%
cost of living index
35,466.31 Ethiopian Birr
gdp - real growth rate
6.1% (2020)
termination process
Varies
employee protections
Moderate

Public Holidays

DATE
HOLIDAY NAME

DATE

01 Jan

19 Jan

02 Mar

14 April

16 April

22 April

01 May

05 May

28 May

29 June

11 Sept

27 Sept

27 Sept

HOLIDAY

New Years Day

Orthodox Epiphany

Victory of Adwa

Ethiopian Good Friday

Ethiopian Easter

Eid-al-Fitr

Labour Day

Patriots Victory Day

Downfall of the  Derg

Eid Al Adha

Ethiopian New Year

Meskel

Maoulid

This is some text inside of a div block.

Minimum wage

Ethiopia does not have a federal minimum wage. Certain government institutions and public enterprises established their own minimum wages: public sector employees earn a monthly minimum wage of Birr 420 ; banking and insurance employees receive a monthly minimum wage of Birr 336.

This is some text inside of a div block.

Payroll cycle

Ethiopian payroll cycle is monthly. 

This is some text inside of a div block.

Taxation

Annual Income (ETB)Ethiopian Tax Rate
0 – 6000%
601 – 1,65010%
1,651 – 3,20015%
3,201 – 5,25020%
5,251 – 7,80025%
7,801 – 10,90030%
10,901 and over35%

Statutory Deductions

Monthly Contributions Employer Employee
Social Security 11% 7%
This is some text inside of a div block.

Leaves

Paternity leave 

In Ethiopia, male workers are entitled to a salaried three consecutive days of paternity leave. However, the Civil Service Law provide a paternity leave of five working days that is paid to all-male civil servants.

Sick leave

Ethiopian workers may take sick leave only after completing the probationary period. The sick leave period is up to six months and pay rate rely on the time of the leave. Employers can grant paid sick leave in various techniques including 100% wage during the initial month of the sick leave, 50% salary during the second and third months and unsalaried sick leave from the fourth month henceforth. 

This is some text inside of a div block.

Termination process

Based on the Ethiopian Labour Proclamation, the contract may be terminated through an agreement of the parties engaged. A contract of employment may be terminated on other grounds associated with the worker’s skills, conduct, operational or organizational requirement of the role or objective situations resulting from the employee’s work.

Notice period 

The notice period in Ethiopia ranges between one to three months according to the duration of service of the employee. For a worker who has finished the probation period and has a duration of service not surpassing a year, a notice period is granted. For an employee who  has a service period above a year to nine years, a notice period of two months is offered. 

Severance 

In Ethiopia, an employee may terminate the employment by offering a 30-day notice duration to the employer. 

Probation 

The labour law of Ethiopia requires the probation period be established in writing when the parties engaged approve to have a probation duration. The period must not, in any case, surpass 45 consecutive days. 

Streamline the growth of remote and
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Country presence
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Employee payroll run
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Country flag

Heading

Hire employees in

Ethiopia

, hassle-free

With Workpay, your business can easily hire employees in

Ethiopia

. No more worrying about local laws, complex tax systems or managing international payroll. Workpay takes care of everything in 50+ countries.

Book a discovery call
country featured image
capital city
Addis Ababa
currency
Ethiopian birr (Br, ብር,)
language spoken
Amharic
payroll frequency
Monthly
employer taxes
11%
vat - standard rate
15%
cost of living index
35,466.31 Ethiopian Birr
gdp - real growth rate
6.1% (2020)
termination process
Varies
employee protections
Moderate

Overview

Ethiopia, with a population of over 115 million as per 2020, is Africa's second most populous country in Africa. Ethiopia has been one of the world's fastest growing economies over the last 15 years at an average of 105 per year. Among other reasons, capital accumulation, particularly through public infrastructure projects, drove growth. The agriculture sector employs over 70% of the population and was unaffected by the COVID-19 epidemic.

Employer of Record (EOR) for

Ethiopia
Benefits

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Cursus blandit sit congue aliquam enim interdum nisl. Gravida proin tristique at amet velit volutpat mattis egestas. Purus eget nunc sed odio. Mattis egestas egestas massa aliquet. Id molestie augue eget euismod at rutrum vestibulum. Facilisis facilisi facilisis odio amet faucibus consectetur egestas quam. Auctor neque vel sollicitudin eget integer phasellus aliquam. Consequat venenatis sit urna lectus nisl mi dapibus tellus. Leo quis egestas amet nisi lobortis nunc tortor. Massa velit quis egestas in sodales pulvinar. Fermentum aliquet neque tristique sed vitae. Porta sit eu tincidunt egestas porttitor at amet.A aliquam mattis nulla fringilla cursus a dignissim. Lectus ut bibendum scelerisque eros malesuada eu. Neque ut purus venenatis quis proin commodo. Nunc nulla turpis id suspendisse. Posuere sodales nunc mauris in faucibus. Mi id eu et accumsan. Vel eleifend quam nibh vulputate. Arcu.

Cost

Cursus blandit sit congue aliquam enim interdum nisl. Gravida proin tristique at amet velit volutpat mattis egestas. Purus eget nunc sed odio. Mattis egestas egestas massa aliquet. Id molestie augue eget euismod at rutrum vestibulum. Facilisis facilisi facilisis odio amet faucibus consectetur egestas quam. Auctor neque vel sollicitudin eget integer phasellus aliquam. Consequat venenatis sit urna lectus nisl mi dapibus tellus. Leo quis egestas amet nisi lobortis nunc tortor. Massa velit quis egestas in sodales pulvinar. Fermentum aliquet neque tristique sed vitae. Porta sit eu tincidunt egestas porttitor at amet.A aliquam mattis nulla fringilla cursus a dignissim. Lectus ut bibendum scelerisque eros malesuada eu. Neque ut purus venenatis quis proin commodo. Nunc nulla turpis id suspendisse. Posuere sodales nunc mauris in faucibus. Mi id eu et accumsan. Vel eleifend quam nibh vulputate. Arcu.

Contacts

Lorem ipsum dolor sit amet consectetur. Aliquet diam ipsum odio morbi sagittis interdum euismod at. Diam tempus eros sit in senectus tempus neque dictum. Vulputate pharetra lectus scelerisque eget vitae condimentum fringilla viverra. Ipsum turpis enim egestas nibh mauris netus nibh pretium. Tempus viverra ipsum pharetra pulvinar cras in libero nulla. Scelerisque sed ultricies nibh facilisis velit odio nunc euismod.Id vitae quis tincidunt lorem diam faucibus nullam. Eu orci dignissim tortor ipsum hendrerit. Ac ipsum feugiat orci turpis dictum consectetur sit lectus nulla. Sit sit semper in sit id senectus sed diam egestas. Pharetra scelerisque nulla id elementum gravida aliquam.Felis nunc quis cras massa amet. Sem turpis lorem eget maecenas augue vestibulum donec ac. Aenean molestie mi tellus nulla elit ullamcorper volutpat scelerisque.

Cursus blandit sit congue aliquam enim interdum nisl. Gravida proin tristique at amet velit volutpat mattis egestas. Purus eget nunc sed odio. Mattis egestas egestas massa aliquet. Id molestie augue eget euismod at rutrum vestibulum. Facilisis facilisi facilisis odio amet faucibus consectetur egestas quam. Auctor neque vel sollicitudin eget integer phasellus aliquam. Consequat venenatis sit urna lectus nisl mi dapibus tellus. Leo quis egestas amet nisi lobortis nunc tortor. Massa velit quis egestas in sodales pulvinar. Fermentum aliquet neque tristique sed vitae. Porta sit eu tincidunt egestas porttitor at amet.A aliquam mattis nulla fringilla cursus a dignissim. Lectus ut bibendum scelerisque eros malesuada eu. Neque ut purus venenatis quis proin commodo. Nunc nulla turpis id suspendisse. Posuere sodales nunc mauris in faucibus. Mi id eu et accumsan. Vel eleifend quam nibh vulputate. Arcu.

Legal Entity

Lorem ipsum dolor sit amet consectetur. Aliquet diam ipsum odio morbi sagittis interdum euismod at. Diam tempus eros sit in senectus tempus neque dictum. Vulputate pharetra lectus scelerisque eget vitae condimentum fringilla viverra. Ipsum turpis enim egestas nibh mauris netus nibh pretium. Tempus viverra ipsum pharetra pulvinar cras in libero nulla. Scelerisque sed ultricies nibh facilisis velit odio nunc euismod.Id vitae quis tincidunt lorem diam faucibus nullam. Eu orci dignissim tortor ipsum hendrerit. Ac ipsum feugiat orci turpis dictum consectetur sit lectus nulla. Sit sit semper in sit id senectus sed diam egestas. Pharetra scelerisque nulla id elementum gravida aliquam.Felis nunc quis cras massa amet. Sem turpis lorem eget maecenas augue vestibulum donec ac. Aenean molestie mi tellus nulla elit ullamcorper volutpat scelerisque.

Cursus blandit sit congue aliquam enim interdum nisl. Gravida proin tristique at amet velit volutpat mattis egestas. Purus eget nunc sed odio. Mattis egestas egestas massa aliquet. Id molestie augue eget euismod at rutrum vestibulum. Facilisis facilisi facilisis odio amet faucibus consectetur egestas quam. Auctor neque vel sollicitudin eget integer phasellus aliquam. Consequat venenatis sit urna lectus nisl mi dapibus tellus. Leo quis egestas amet nisi lobortis nunc tortor. Massa velit quis egestas in sodales pulvinar. Fermentum aliquet neque tristique sed vitae. Porta sit eu tincidunt egestas porttitor at amet.A aliquam mattis nulla fringilla cursus a dignissim. Lectus ut bibendum scelerisque eros malesuada eu. Neque ut purus venenatis quis proin commodo. Nunc nulla turpis id suspendisse. Posuere sodales nunc mauris in faucibus. Mi id eu et accumsan. Vel eleifend quam nibh vulputate. Arcu.

Labor Law

Lorem ipsum dolor sit amet consectetur. Aliquet diam ipsum odio morbi sagittis interdum euismod at. Diam tempus eros sit in senectus tempus neque dictum. Vulputate pharetra lectus scelerisque eget vitae condimentum fringilla viverra. Ipsum turpis enim egestas nibh mauris netus nibh pretium. Tempus viverra ipsum pharetra pulvinar cras in libero nulla. Scelerisque sed ultricies nibh facilisis velit odio nunc euismod.Id vitae quis tincidunt lorem diam faucibus nullam. Eu orci dignissim tortor ipsum hendrerit. Ac ipsum feugiat orci turpis dictum consectetur sit lectus nulla. Sit sit semper in sit id senectus sed diam egestas. Pharetra scelerisque nulla id elementum gravida aliquam.Felis nunc quis cras massa amet. Sem turpis lorem eget maecenas augue vestibulum donec ac. Aenean molestie mi tellus nulla elit ullamcorper volutpat scelerisque.

Cursus blandit sit congue aliquam enim interdum nisl. Gravida proin tristique at amet velit volutpat mattis egestas. Purus eget nunc sed odio. Mattis egestas egestas massa aliquet. Id molestie augue eget euismod at rutrum vestibulum. Facilisis facilisi facilisis odio amet faucibus consectetur egestas quam. Auctor neque vel sollicitudin eget integer phasellus aliquam. Consequat venenatis sit urna lectus nisl mi dapibus tellus. Leo quis egestas amet nisi lobortis nunc tortor. Massa velit quis egestas in sodales pulvinar. Fermentum aliquet neque tristique sed vitae. Porta sit eu tincidunt egestas porttitor at amet.A aliquam mattis nulla fringilla cursus a dignissim. Lectus ut bibendum scelerisque eros malesuada eu. Neque ut purus venenatis quis proin commodo. Nunc nulla turpis id suspendisse. Posuere sodales nunc mauris in faucibus. Mi id eu et accumsan. Vel eleifend quam nibh vulputate. Arcu.

Harness the power of Workpay

Our innovative cloud based solution makes managing your teams more seamless than ever before, streamline your processes and take your business to the next level.

EOR vs AOR in

Ethiopia

Ethiopia does not have a federal minimum wage. Certain government institutions and public enterprises established their own minimum wages: public sector employees earn a monthly minimum wage of Birr 420 ; banking and insurance employees receive a monthly minimum wage of Birr 336.

PEO

Ethiopia does not have a federal minimum wage. Certain government institutions and public enterprises established their own minimum wages: public sector employees earn a monthly minimum wage of Birr 420 ; banking and insurance employees receive a monthly minimum wage of Birr 336.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Employee Onboarding and Termination process

Based on the Ethiopian Labour Proclamation, the contract may be terminated through an agreement of the parties engaged. A contract of employment may be terminated on other grounds associated with the worker’s skills, conduct, operational or organizational requirement of the role or objective situations resulting from the employee’s work.

Notice period 

The notice period in Ethiopia ranges between one to three months according to the duration of service of the employee. For a worker who has finished the probation period and has a duration of service not surpassing a year, a notice period is granted. For an employee who  has a service period above a year to nine years, a notice period of two months is offered. 

Severance 

In Ethiopia, an employee may terminate the employment by offering a 30-day notice duration to the employer. 

Probation 

The labour law of Ethiopia requires the probation period be established in writing when the parties engaged approve to have a probation duration. The period must not, in any case, surpass 45 consecutive days. 

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Harness the power of Workpay

Our innovative cloud based solution makes managing your teams more seamless than ever before, streamline your processes and take your business to the next level.

Minimum wage

Ethiopia does not have a federal minimum wage. Certain government institutions and public enterprises established their own minimum wages: public sector employees earn a monthly minimum wage of Birr 420 ; banking and insurance employees receive a monthly minimum wage of Birr 336.

Payroll cycle

Ethiopian payroll cycle is monthly. 

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Taxation

Annual Income (ETB)Ethiopian Tax Rate
0 – 6000%
601 – 1,65010%
1,651 – 3,20015%
3,201 – 5,25020%
5,251 – 7,80025%
7,801 – 10,90030%
10,901 and over35%

Statutory Deductions

Monthly Contributions Employer Employee
Social Security 11% 7%
What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

What is a PEO?

Workpay is a robust cloud-based employee management solution for SMEs in Africa, a set of tools developed to help organisations manage and pay their employees on time.

Leaves

Paternity leave 

In Ethiopia, male workers are entitled to a salaried three consecutive days of paternity leave. However, the Civil Service Law provide a paternity leave of five working days that is paid to all-male civil servants.

Sick leave

Ethiopian workers may take sick leave only after completing the probationary period. The sick leave period is up to six months and pay rate rely on the time of the leave. Employers can grant paid sick leave in various techniques including 100% wage during the initial month of the sick leave, 50% salary during the second and third months and unsalaried sick leave from the fourth month henceforth. 

Why we are Africa's preferred Employer of Record

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Public Holidays

DATE

01 Jan

19 Jan

02 Mar

14 April

16 April

22 April

01 May

05 May

28 May

29 June

11 Sept

27 Sept

27 Sept

HOLIDAY

New Years Day

Orthodox Epiphany

Victory of Adwa

Ethiopian Good Friday

Ethiopian Easter

Eid-al-Fitr

Labour Day

Patriots Victory Day

Downfall of the  Derg

Eid Al Adha

Ethiopian New Year

Meskel

Maoulid

Harness the power of Workpay

Our innovative cloud based solution makes managing your teams more seamless than ever before, streamline your processes and take your business to the next level.