✔ We get your team working in Ethiopia
✔ We handle all your payroll needs
✔ We ensure 100% compliance for your business
Africa HR Solutions takes care of employer of record services to clients that are looking to hire workers and operate payroll without first setting up a branch office or subsidiary in Ethiopia. Your applicants are hired via Africa HR Solutions Angola Employer of Record (EOR Angola) in line with local labor laws and may be on-boarded in days rather than the months it usually requires. The individual is assigned to work on your team, working on your organization’s behalf exactly as if he or she was your worker.
As always, we guarantee 100% compliance for your business in Africa.
Ethiopia’s economy has been one of the fastest growing in the world over the last ten years. Several sectors are enjoying a boom period including the export of agricultural products. Around 40% of the GDP is agricultural goods and the sector contributes 80% of exports and employs 80% of the labor force.
Top crops are coffee, maize, pulses, cereals, sugarcane, and vegetables such as chickpeas. It is Africa’s busiest producer of coffee and the second biggest maize producer. Gold, oilseeds, leather, and khat are some of the other main exports, and there has been a boom in the floriculture sector recently.
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In order to maintain industrial peace and work in the spirit of harmony and cooperation worker- employer relations should be governed by law. Basic rights of employees should be respected by the employers and the employees should render their obligations to the employers. In Ethiopia labor proclamation No 377/96 puts a detailed list of rights and obligations of these parties. Once an Employment relation is formed there are certain obligations that are imposed on an employer. Such obligations may serve as the rights of the employee by default.
A. Obligations of an Employer
Any employers in addition to special stipulations in the contract of employment have the following obligations.
1. To provide work to the worker according to the contract of employment.
2. To provide him with materials and implements necessary for the performance of the work.
3. To pay the worker wages and other necessary payments that should be made.
4. To respect the worker’s human dignity.
5. To take all the necessary occupational safety and health measures and to abide by the standards and directives given by the appropriate authorities in respect of these measures.
6. To cover the cost of medical examination of the worker whenever such medical examination required.
7. To give the worker, weekly rest days’ public holidays and leave.
8. When the contract of employment is terminated or whenever the worker so requests, to provide the worker, free of charge, with a certificate stating the type of work he performed, the length of service and the salary he was earning.
B. Obligations Of a Workers
Every worker shall have the following obligations.
1. To perform in person the work specified in his contract of employment
2. To follow instructions given by the employer based on the terms of the contract and work rules
3. To handle with due care all instruments and tools entrusted to him for work.
4. To report for work always in fit mental and physical conditions
5. To give all proper aid when an accident occurs or an imminent danger threatens life or property in his place of work without endangering his safety and health.
6. To inform the employer immediately of any act which endangers himself or his fellow workers or which may prejudice the interests of the undertakings.
7. To observe the provisions of this proclamation, collective agreements, work rules and directives issued in accordance with the law.
Under law, any person who counts as a fiscal resident in Ethiopia (i.e. lives in Ethiopia for 184 or more days a year) has to pay tax on their income. This applies to money earned both within the country and abroad. Income tax is also payable on income derived from the rent of a house, and other forms such as the rent of patent and copyright, company shares, and lottery wins.
Income tax from employment are as follows:
Up to ETB 600 – 0%
ETB 601- 1,650 10%
ETB 1,651 – 3,200 15%
ETB 3,201 – 5,250 20%
ETB 5,251 – 7,800 25%
ETB 7,801 – 10,900 30%
Above ETB 10,900 35%
Our employer of record service enables
businesses to run payroll in Ethiopia while Africa HR Solutions takes
care of taxation, and compliance management issues are lifted from their
shoulders and passed on ours. As an African Employer of Record
professional, we manage employment best practices, statutory and local
norm, benefits, and employee expenditures, as well as severance and
termination if needed.
Also, we keep you informed of changes to local employment laws in Ethiopia.
When using our solutions, your new hire
is up and ready even earlier, since he goes through a much better hiring
transition. You will have peace of mind knowing you have a group of
dedicated employment specialists, backed by years of experience, helping
with each on-boarding.
Africa HR Solutions lets you focus on running efficiently your core business.
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