Ethiopia

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Ethiopia. See a sample of popular sections below.

Termination of Employment

In Ethiopia, the notice of termination of an employment agreement must be in writing, specifying the reasons for the termination and the date on which it will take effect. The notice must also be handed to the employee in person. When this is not possible, it must appear on the notice board in the workplace for ten consecutive days.

The obligations of the parties arising from the contract of employment shall remain intact during the period of notice.

The notice period in Ethiopia depends on the length of service or the grounds for dismissal:

  • One month for an employee who has completed probation and has a period of service not exceeding one year
  • Two months for an employee with the service between one and nine years
  • Three months for an employee whose period of service is more than nine years
  • Two months for an employee whose probationary period is completed and the employment agreement is terminated due to a reduction of the workforce
  • A period agreed upon by the parties for a contract of employment that is for a definite period or piece work

Work Permits

Foreign nationals who wish to work in Ethiopia are required to obtain a work permit. It is issued for three years by the Ministry of Labor for a specific type of work and is renewed every year.

Getting a work permit requires an application from the hiring organization and a recommendation letter from relevant governmental bodies and agencies. Work permits are issued based on the type of work for the permit being requested and upon providing appropriate educational and experiential documents. The requirements vary based on the employing organization.

Paid Annual Leave

Under the Labor Proclamation of Ethiopia, female employees are entitled to fully paid maternity leave of 120 days (30 days pre-natal and 90 days postnatal) upon the recommendation of a medical doctor.

If a pregnant employee does not deliver within 30 days of her pre-natal leave, she is entitled to additional leave until her delivery. If she gives birth before the 30 day period has elapsed, postnatal leave (90 days) commences after delivery.

Female employees are also entitled to paid leave for medical examinations related to pregnancy and paid leave during pregnancy based on the recommendation of a medical doctor.

Working Hours

Ethiopian labor law defines "normal hours of work" as the time during which employees perform work or prepare themselves for work in accordance with the law, collective agreement, or work rules. The standard workweek shall not exceed 48 hours a week or eight hours a day. Employees under the age of 18 must not be employed for more than 7 hours a day. Employees who work over 48 hours a week or eight hours a day are eligible for overtime compensation. Overtime may not exceed four hours in a day and 12 hours a week.

Maternity Leave

Under the Labor Proclamation of Ethiopia, female employees are entitled to fully paid maternity leave of 120 days (30 days pre-natal and 90 days postnatal) upon the recommendation of a medical doctor.

If a pregnant employee does not deliver within 30 days of her pre-natal leave, she is entitled to additional leave until her delivery. If she gives birth before the 30 day period has elapsed, postnatal leave (90 days) commences after delivery.

Female employees are also entitled to paid leave for medical examinations related to pregnancy and paid leave during pregnancy based on the recommendation of a medical doctor.

Minimum Wage

There is no national minimum wage for private sector employers in Ethiopia. Minimum wages in the public sector are set at the national level, depending on the nature of the service and skill level of the employee. Public sector employees' monthly minimum wage is approximately ETB 420 (Ethiopian birr).

Ethiopia's 2019 Labor Proclamation provides for the formation of a Wage Board consisting of representatives from the government, employees, and trade unions, that will periodically determine and revise minimum wages. 

Wages must be paid at such intervals as provided for by law, collective agreement, work rule, or contract of employment. Wages must be paid on working days and at the place of work.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Ethiopia.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Ethiopia.