Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Ethiopia. Traditional methods of establishing global employment and subsidiaries in Ethiopia typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Ethiopia in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
Personal Income Tax rates range from 0% to 35% depending on the employees’ taxable income.
Taxable monthly income (ETB)
Employers contribute 11% towards a state-run pension fund.
Employees contribute 7% towards a state-run pension fund.
The typical working hours are 8 hours per day and 48 hours maximum per week.
It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!
Any work over 48 hours per week is considered overtime. Overtime is only permissible for a maximum of 2 hours per day, 20 hours per month or 100 hours per year.
Employees receive 14 days paid vacation plus 1 day for every additional year of service.
Sick leave amounts to a maximum of 6 months. Employers pay the 1st month at 100% salary, which is then reduced to 50% for months 2-3. After 3 months, employers are not required to pay sick leave. A medical certificate is required for an absence longer than 1 day.
Ethiopia has maternity leave regulations that include 30 days of paid leave before childbirth and a minimum of 60 days paid leave after childbirth.
Paternity leave in Ethiopia includes 3 days paid paternity leave after birth.
There are no statutory provisions for parental leave. Employees are entitled to 5 days unpaid leave for exceptional circumstances.
Employees are entitled to 3 days paid leave for marriage.
We believe that remote employees should be able to access their local, as well as a high standard international benefits anywhere they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.
Severance is typically required in Ethiopia, unless in case of redundancy. However, other payments may be required in certain specific circumstances. Please contact us with any questions.
Notice of termination depends on length of service, as follows:
Ethiopian laws protect employees from illegal termination of employment and because there are a range of reasons an employee can be terminated, it is important for those looking to employ in Ethiopia to reach out to us directly with questions.
Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination are highly complex and there can be a number of situation-specific variables. If you have questions in this area, please reach out to us directly to discuss.
The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Ethiopia are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.
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