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Ethiopia Employment Guide

Your quick guide on talent and labor compliance norms in Ethiopia


Addis Ababa


Ethiopian Birr (ETB)


Amharic, Somali, Afar, Oromo, Tigrigna

Payroll Frequency


GDP per Capita


Employer Tax


Talent Overview

Ethiopia is the second-most populous country in Africa, with 117 million people in 2021. Its domestic economy has grown at an impressive average of 9.5% in the last 15 years, and 6.3% in FY21. The country has managed to reduce poverty in both urban and rural areas, and aims to achieve lower-middle-income status by 2025.

Major economic hubs:

Addis Ababa, Gondar, Bahir Dar

Skills in demand:

Project Manager, Data Analyst, Technical Support, Web Designer

Map 40

Local Universities

The top local universities in Ethiopia are as follows:

Uni1 64

Addis Ababa University


Local: 1

World: 2714

Uni2 56

Jimma University


Local: 2

World: 5183

Uni3 48

Bahir Dar University


Local: 3

World: 7048

Uni4 47

Mekelle University


Local: 4

World: 7939

Uni5 42

Hawassa University


Local: 5

World: 8067

Salary Data

The below table mentions some common jobs with average monthly salaries in Ethiopia:

Job Title Average Monthly Salary (ETB) Average Monthly Salary (USD)
Financial Manager 17,700 ETB 331.46 USD
General Manager 15,100 ETB 282.77 USD
Business Development Manager 14,100 ETB 264.05 USD
Financial Analyst 11,600 ETB 217.23 USD
Business Analyst 10,700 ETB 200.38 USD
Project Manager 10,200 ETB 191.01 USD
Talentsource 48

Talent Sourcing Tips

Top Local Job Boards

Jobisland, ethioJobs, EthipiaWork

Number of LinkedIn users


Top Recruitment Agencies

Geezjobs, Al Aswal Foreign Employment Agency

Employing in Ethiopia

The main source of labor laws in Ethiopia is the Labour Proclamation No. 42/1993. The Proclamation lays down all the facets of the employer-employee relationship and guides the labor disputes in the country. The sections below discuss the major points of the law that both employers and employees in Ethiopia should know.

Employee Contract

The labor laws in Ethiopia mandate employers to sign an employment contract with the employee. The contract must specify the names of the parties, employee benefits, terms and conditions, and the working location.

Probation Period

The probation period in Ethiopia is a maximum of 45 consecutive days.

Public and Provincial Holidays 2023

Date Name Type
7 Jan Ethiopian Christmas Day Public Holiday
19 Jan Epiphany / Timkat Public Holiday
2 Mar Adwa Victory Day Public Holiday
14 Apr Ethiopian Good Friday Public Holiday
16 Apr Fasika Public Holiday
22 Apr Eid ul Fitr (Tentative Date) Public Holiday
1 May International Labor Day Public Holiday
5 May Patriots’ Day Public Holiday
28 May Derg Downfall Day Public Holiday
29 Jun Eid al-Adha (Tentative Date) Public Holiday
12 Sep Ethiopian New Year Public Holiday
27 Sep The Prophet’s Birthday (Tentative Date) Public Holiday
28 Sep Meskel Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual leaves 16 days (+1 day for every of service)18 days after 5 years of service (+1 day for every two years service) Yes
Sick leaves Up to 6 months per year Yes
Maternity leaves 120 days Yes


Payroll 1

Payroll Cycle

Ethiopia follows a monthly payroll cycle.

Payroll 2

Minimum Wage

The minimum wage in Ethiopia exists only for the public sector at 420 ETB per month and the banking sector at 336 ETB per month. Government entities set their own minimum wages.

Payroll 3

Overtime Pay

The standard working hours in Ethiopia are 8 hours per day and 48 hours per week. The overtime compensation is provided as below:


13th Month Pay

There is no law that mandates 13th-month pay in Ethiopia.

Employee Benefits

  • Social security
  • Paid leaves
  • Maternity benefits


Employer Payroll Tax

Contribution Tax rate
Social security 11%

Employee Payroll Tax

Contribution Tax rate
Social security 7%

Employee Income Tax

Monthly taxable income (in ETB) Tax rate
0 – 600 0%
601 – 1,650 10%
1,651 – 3,200 15%
3,201 – 5,250 20%
5,251 – 7,800 25%
7,801 – 10,900 30%
10,901 and above 35%


The standard rate of Value-Added Tax in Ethiopia is 15%.

Offboarding & Termination

Employers in Ethiopia can terminate an employment contract with a justified reason by providing a written notice and specifying the last date of work.

Termination by an employer is legal on grounds of expiration of the contract, death of the employee, insolvency of business, unsatisfactory performance or mutual agreement. The employee can give a 15-day notice in advance requesting a termination on the grounds of criminal assault from the employer or unfulfilled terms and conditions.

The notice period in Ethiopia is as follows:

Length of service Notice period
1 year 1 month
1 – 9 years 2 months
More than 9 years 3 months

The severance pay in Ethiopia is 30 days’ regular salary for the first year of employment. From the succeeding year, the severance pay increases at the rate of 1/3rd of the previous sum per year of service. This pay is capped at a maximum of 12 months’ pay.

Length of severance Severance pay
1 year 30 days
More than 1 year 1

Visa and Immigration

Foreign citizens relocating to Ethiopia for work must have a work permit before their first day of work. However, nationals of the following countries can work in Ethiopia without a visa:

  • Djibouti (visa-free stay up to 3 months)
  • Kenya (visa-free stay up to 1 year)

Moreover, a diplomatic or service passport holder of any country (except Pakistan and Somalia can stay in Ethiopia for up to 3 months.

There are three ways to apply for an Ethiopian work visa: online, on arrival, and in the Embassy. The Ethiopian eVisa and on-arrival visas are granted to individuals visiting the country only once for a maximum of 90 days. It does not support multiple-entry and long-term extensions. On the other hand, individuals arriving through an entry point other than Addis Ababa Bole International Airport must visit the Embassy for a work visa. The Embassy-issued work visa supports multiple entries and extensions.

Visa 47
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Minimum Wage

Overtime Pay

Overtime Period Overtime Pay
6 AM – 10 PM 150%
10 PM – 6 AM 175%
Weekly rest day 200%
Public holiday 250%

Visa & Immigration