Ethiopia, officially the Federal Democratic Republic of Ethiopia, is a landlocked country in the Horn of Africa. It shares borders with Eritrea to the north, Djibouti to the northeast, Somalia to the east and northeast, Kenya to the south, South Sudan to the west, and Sudan to the northwest. The country’s land area covers 1.1 million square kilometers. Ethiopia’s economy is based on agriculture, which accounts for 46% of GDP and 85% of total employment.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Ethiopia.
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Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Ethiopia
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Ethiopia, officially the Federal Democratic Republic of Ethiopia, is a landlocked country in the Horn of Africa. It shares borders with Eritrea to the north, Djibouti to the northeast, Somalia to the east and northeast, Kenya to the south, South Sudan to the west, and Sudan to the northwest. The country’s land area covers 1.1 million square kilometers. Ethiopia’s economy is based on agriculture, which accounts for 46% of GDP and 85% of total employment.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Ethiopia.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Ethiopia planning:
The national holidays mentioned below are valid for the year 2026.
| January 7 | Ethiopian Christmas | |
| January 19 | Timket | |
| March 2 | Adwa Victory Day | |
| March 20 | Eid al-Fitr | Movable |
| April 10 | Siklet | |
| April 12 | Ethiopian Easter Sunday | Movable |
| May 1 | Labour Day | |
| May 5 | Patriots' Victory Day | |
| May 27 | Eid al-Adha | Movable |
| May 28 | Derg Downfall Day | |
| August 26 | Prophet Muhammad's Birthday | Movable |
| September 11 | Ethiopian New Year | |
| September 27 | Meskel |
The approximate time for sharing the contract with an employee in Ethiopia is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
In Ethiopia, social insurance is available for all employees covering a full range of pensions such as:
The contributions payable to the Private Organizations employees’ Service Pension Fund should be based on the salary of the employee of the private organization. The employer contributes 11% to the Pension Fund.
Normal hours of work should not exceed eight hours a day or 48 hours a week.
Overtime work should not exceed four hours a day and 12 hours a week. In addition to the normal wage, a worker who works overtime is entitled to at least the following rate of payments:
| Time | Overtime Pay Rate |
| In the case of work done between 6:00 a.m. in the morning and 10:00 p.m. in the evening | 1.5 times the ordinary hourly rate |
| In the case of nighttime work between 10 p.m. in the evening and 6 a.m. in the morning | 1.75 times the ordinary hourly rate |
| In the case of work done on the weekly rest day | 2 times the ordinary hourly rate |
| In the case of work done on a public holiday | 2.5 times the ordinary hourly rate |
If the parties agree to have a probation period, the agreement should be made in writing. In this case, the probation period should not exceed 60 working days beginning from the first date of employment.
Notice by the Employer for Indefinite Contracts
| Length of Service | Notice Period |
| During Probation | No notice required |
| In the case of a worker who has completed probation and has a period of service not exceeding 1 year | 1 month |
| Above 1 year and not exceeding 9 years | 2 months |
| More than 9 years | 3 months |
| In the case of a worker who has completed probation and whose contract of employment is to be terminated due to a reduction in the workforce. | 2 months |
The period of notice for a contract of employment for a definite period should be as agreed upon by the parties to the contract.
Normal hours of work should not exceed eight hours a day or 48 hours a week.
Overtime work should not exceed four hours a day and 12 hours a week. In addition to the normal wage, a worker who works overtime is entitled to at least the following rate of payments:
| Time | Overtime Pay Rate |
| In the case of work done between 6:00 a.m. in the morning and 10:00 p.m. in the evening | 1.5 times the ordinary hourly rate |
| In the case of nighttime work between 10 p.m. in the evening and 6 a.m. in the morning | 1.75 times the ordinary hourly rate |
| In the case of work done on the weekly rest day | 2 times the ordinary hourly rate |
| In the case of work done on a public holiday | 2.5 times the ordinary hourly rate |
If the parties agree to have a probation period, the agreement should be made in writing. In this case, the probation period should not exceed 60 working days beginning from the first date of employment.
Notice by the Employer for Indefinite Contracts
| Length of Service | Notice Period |
| During Probation | No notice required |
| In the case of a worker who has completed probation and has a period of service not exceeding 1 year | 1 month |
| Above 1 year and not exceeding 9 years | 2 months |
| More than 9 years | 3 months |
| In the case of a worker who has completed probation and whose contract of employment is to be terminated due to a reduction in the workforce. | 2 months |
The period of notice for a contract of employment for a definite period should be as agreed upon by the parties to the contract.
In Ethiopia, social insurance is available for all employees covering a full range of pensions such as:
The contributions payable to the Private Organizations employees’ Service Pension Fund should be based on the salary of the employee of the private organization. The employer contributes 11% to the Pension Fund.
Benefits
Employer Contribution
Maximum Base
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