All eight core International Labour Organization (ILO) conventions apply in Ethiopia. Domestic labour laws and regulations are flexible.



Absence of minimum wage in the private sector



No general restriction on night works



Normal hours of work per day



Normal hours of work per week



Maximum days of work per year (6 per week)



Average premium pay for overtime work



Paid annual leave days (for a starting employee), additional days for workers with additional years of service apply




Paid annual special leave days (employer is authorized to ask for supporting evidence)



Maximum 6 months of sick leave (the first month the worker earns 100% of his/her wage; the next two months, he/she earns 50%; the next three months, he/she is not paid)



Hiring children under the age of 14 is strictly prohibited (18 for certain type of hazardous work)

Although workers have the right to join unions and conduct legal strikes, labour strikes are, in practice, rare.

Investors are authorized to employ expatriates.

While foreign enterprises can freely hire expatriate employees in top management positions, they have to replace expatriate staff by locals for other positions within a limited period.

In order to be able to work in Ethiopia, foreign workers have to get a work permit

Employee costs estimation calculator

Invest in Ethiopia

Cost calculator*

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Pension scheme

The proclamation 715/2011 established a private organizations’ employees pension scheme. Both employees and employers contribute to the pension scheme. Currently, the contribution rate is, for employers, set up at 11% (7% for employees).

*Disclaimer: Estimates of the “Cost calculator” are based on data provided by related local stakeholders. EIC will not be liable for any computation made on outdated information.