Ethiopia HR Outsourcing

Considered as one of the oldest countries in the world, Ethiopia is a country known for its regional and international trade activities for years offering diverse job and employment outsourcing opportunities to boost its economy. It has a remarkable track record in growth and poverty reduction. The country’s airline, Ethiopian Airlines is the largest aviation group in Africa known for its efficiency and operational success. The country is also rich in various sectors, including hydroelectric, mining (phosphate, hydrocarbons), and has the potential to become a tourism destination in Africa due to its history and endemic wildlife.

If your organisation is moving to Ethiopia, you may want to take off the challenges related to the local, cultural, labour laws and policies off your shoulders and work with the right partner to handle all your HR outsourcing initiatives. Africa HR Solutions is the partner you need to accompany with an end-to-end Ethiopia HR outsourcing support, from PEO, Employer of Record, payroll solutions, taxation, competitive benefits schemes among other services.

Country Profile - Ethiopia

Population: 112.1 mn

Gross Domestic Product (GDP): $107.65 bn

GDP Growth: 6.8%

Inflation: 19.7%

Foreign Direct Investment (% of GDP): 3.9%

Unemployment Rate: 1.8 %

Capital: Addis Ababa

Currency: Ethiopian Birr

Languages: Amharic

Payroll Outsourcing in Ethiopia

Ethiopia's Economy

With over 112 million citizens, Ethiopia is the second-most populous nation in Africa after Nigeria and is considered the fastest growing economy in the continent. The country is plagued with poverty, where people earn a per capita income of $850. The economy grew by 6.1% in 2020 despite the Covid-19 pandemic due to the performance of services and industry sectors. The hospitability, transport, and communications sphere suffered due to confinement measures that had to be implemented. Ethiopia is dedicating a large share of its budget to pro-poor programs and investments with the objective to create more employment, enhance governance, reduce poverty, and attract FDI.

Public Holidays in Ethiopia

Ethiopian Christmas Day

The Prophet’s Birthday

Ethiopian Epiphany

Adwa Victory Day

Ethiopian Good Friday

Ethiopian Easter Sunday

International Labour Day

Freedom Day

Derg Downfall Day



Ethiopian New Year’s Day



Employment in Ethiopia

Famous for its international trade, the country is one of the oldest countries in the world. With a large number of people, the country offers significant and diverse business opportunities. The country’s labour law outlines that any employment agreement should consist of the:

Employer’s name and address
Employee’s name, age, address, and work card number, if applicable
Agreement between the employee and employer in line with the regulations
Signatures of employee and employer
Employees are entitled to sick, parental, and vacation leaves. The length of service determines the termination and severance pay. All taxes should be paid to the Ethiopian Revenues and Customs Authority (ERCA).