Global Employment Solutions & PEO in Ethiopia

Omnipresent makes it fast and easy to employ remote talent in Ethiopia. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Addis Ababa
Birr (ETB)
Native Language
Amharic, Oromo, Tigrinya, Somali, Afar
Payroll Frequency
Employee Protections
Employment Costs
Cost of Living
112.11 Million

What You Need to Know About Employing in Ethiopia

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws

How Do Omnipresent Global Employment Solutions Work?

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. 

  • Your company conducts the hiring and candidate selection process in Ethiopia.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Ethiopia.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Ethiopia.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Payroll & Taxes in Ethiopia

Employee Income Taxes:

Personal Income Tax rates range from 0% to 35% depending on the employees’ taxable income. 

Taxable monthly income (ETB)

  • 0-600: Exempt 
  • 600-1,650: 10%
  • 1,650-3,200: 15%
  • 3,200-5,250: 20%
  • 5,250-7,800: 25%
  • 7,800-10,900: 30%
  • 10,900 or more: 35%

Payroll Cycle:



Employer Costs in Ethiopia

Employer Contributions:

Employers contribute 11% towards a state-run pension fund.

Employee Contributions:

Employees contribute 7% towards a state-run pension fund.


Working Hours in Ethiopia

Typical Working Hours per Week:

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!

Overtime Laws:

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.


Public Holidays & Vacation Time in Ethiopia

Standard Public Holidays in Ethiopia

  • Orthodox Christmas
  • Timkat
  • Adwa Victory Day
  • Good Friday (Eastern)
  • Labour Day
  • Orthodox Easter
  • Patriots’ Victory Day
  • Eid al-Fitr
  • Enkutatash
  • Meskel
  • Prophet’s Birthday

Vacation Time in Ethiopia

Employees in Ethiopia receive 14 working days of paid vacation per year, plus one day for every additional year of service.


Types of Leave in Ethiopia

Sick Leave:

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.

Maternity Leave:

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:

Paternity leave in Ethiopia includes 3 days paid paternity leave after birth. 

Unpaid Childcare Leave:

There are no statutory provisions for parental leave. Employees are entitled to 5 days unpaid leave for exceptional circumstances.

Other Types of Leave:

Employees are entitled to 3 days paid leave for marriage.


Health Insurance & Supplementary Benefits in Ethiopia

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.


Termination & Severance in Ethiopia


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:

Notice of termination depends on length of service, as follows:

  • Under 1 year of service, 2 months of notice:
  • Between 1 year and 9 years of service, 2 months of notice: 
  • Over nine years of service, 3 months of notice. 

Unprotected and Protected Termination

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.

Protected Classes of Employees:

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.


Grow your global team. 

Employ the best talent, anywhere in the world.

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.

Want to onboard an international employee today? Get started.

Omnipresent makes it easy to hire, pay, and support your international team. Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.

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