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SALARY PAYMENT IN Ethiopian Birr (ETB)
CONTRACT LANGUAGES Ethiopia
PAYROLL TAX 0 to 35%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
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Hire and pay talents
with Horizons in
180+ countries
Ethiopia
Horizons provides global employment solutions allowing any business to easily hire employees in Ethiopia — in full compliance with local laws and regulations. The Horizons Ethiopia PEO solution means you can do hire employees in Ethiopia without the need to set up a local subsidiary or entity.
This saves businesses time and money, and reduces or eliminates the risk of non-compliance.
PEO Platform Hire in Ethiopia, and pay employees through our platform or app. | PEO Cost Our Ethiopia PEO solution is the most affordable on the market. | Time-to-hire Fast Ethiopia onboarding, hire in as little as 24 hours. |
Contracts We draft compliant Ethiopia labor contracts. | Local benefits We manage all Ethiopia “Five Insurances” mandatory benefits. | 180+ Countries It doesn’t stop with Ethiopia — we hire employees globally. |
A Professional Employer Organization (PEO) is a specialist HR business that provides various employment-related services to client companies.
In Ethiopia, a PEO offers services such as payroll processing, benefits administration, tax compliance, and HR support. The PEO enters into a co-employment relationship with the client company, meaning that it takes on certain employer responsibilities for the client company’s team.
In short, the PEO acts as an outsourced HR department for the client company, allowing the client to focus on its core business activities. The PEO is paid a fee for its services, based either on the number of employees or a percentage of total payroll burden (I.e., the total cost of employment).
In Ethiopia, a PEO can assist client companies with the hiring process in a variety of ways. One way is by handling the administrative tasks associated with hiring, such as posting job advertisements, reviewing resumes, and scheduling interviews. A PEO can also help a client company to create job descriptions and offer letters, and to conduct background checks and reference checks on potential hires.
In addition, a PEO can provide guidance to a client company on employment laws and regulations in Ethiopia, including those related to hiring. This can help the client company to ensure that it is complying with all relevant laws and to avoid potential legal issues.
Finally, a PEO can provide training and support to a client company on effective hiring practices, such as how to conduct interviews and assess candidates. This can help the client company to make informed hiring decisions and to build a strong and productive workforce.
Specifically, an Ethiopia PEO can help ensure compliance with the following legal requirements:
An Ethiopia PEO can help you manage benefits in Ethiopia by managing all benefits for your Ethiopia staff. This includes leave management, healthcare, and pensions.When it comes to annual leave/vacation leave, employees in Ethiopia received 16 days paid annual leave. In addition to an are several mandatory public holidays in Ethiopia. Some of the most notable ones include:
Ethiopia has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
| Date | Holiday name |
|---|---|
| 1-3 Jan | New Year’s Day |
In addition to these holidays, there are also several other holidays that are observed by certain groups or in certain regions of Ethiopia. For example, some areas observe the Islamic holiday of Eid al-Fitr, while others observe the Orthodox Christian holiday of Timkat.
It is important to note that while these holidays are mandatory, the actual dates on which they are observed may vary depending on the lunar calendar used in Ethiopia.
In Ethiopia, the maternity leave requirements are established by the Labor Proclamation No. 377/2003. According to this law, female employees are entitled to a total of 120 days of maternity leave. This covers 30 days before birth and 90 days after. During this time, the employee is entitled to receive her full pay and other benefits.
Male employees are entitled to three consecutive days of paid parental leave. Civil servants get five days.
Under the Private Organization Employees’ Pension Proclamation (Proclamation No. 1268/2022) employers in Ethiopia are required to make contributions on behalf of their employees into a nationally-administered pension scheme.
Currently, employers are required to contribute 11 percent of an employee’s basic salary, while the employee must contribute 7 percent.
Evidence of compliant payment of these contributions is essential for a business in Ethiopia to maintain and have its business licences renewed.
In Ethiopia, employers are not required to provide health insurance for their employees. However, the Ethiopian Health Insurance Agency (EHIA) oversees two public insurance schemes:
While the government in Ethiopia aims for universal coverage through these schemes, this has yet to be implemented.
Ethiopia Professional Employer Organization (PEO) solutions take the stress out of hiring employees in Ethiopia. By using a PEO, any company, anywhere in the world can hire quickly, cost-effectively and in full compliance with Ethiopia labor laws and regulations.
With Horizons, you get quick service, transparent pricing, and expert support.
An Ethiopia Employer of Record (EOR) becomes the legal employer of your team in Ethiopia and is legally responsible for tax withholding and social contributions.
An Ethiopia PEO usually offers an EOR solution as part of its offerings, but often offers other services as well, such as visa support and recruitment.
The easiest way for international companies to hire in Ethiopia is through an Ethiopia PEO. This ensures that employees are onboarded quickly, cost-effectively and in full compliance with Ethiopia’s labor laws.
Headquarters
71 Robinson Road #13-153
Singapore 068895
+65 3158 1382
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Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
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1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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