Ethiopia Payroll Outsourcing

Pay Your Talents
in Ethiopia Compliantly

$ 0 m +

Seeking A Reliable Payroll Partner in Ethiopia ?​​

With our Ethiopia Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Ethiopia’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.

Ethiopia Payroll Done The Easy Way. The Right Way.​​

13 Years of Experience

Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.

Bulletproof Compliance

Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.

+44 Countries in Africa

Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.

Single Point of Contact

Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.

Maximize your ROI

It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.

Swift Payroll Implementation

With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.

We Can Help. Just Tell Us How!

Ethiopia Country Overview

Ethiopia was one of the first African countries to gain independence in 1896!

Geographic location: This landlocked country is located in the Horn of Africa and is bordered by Sudan, Somalia, Djibouti, Eritrea.

Population: Ethiopia is the second most populated country in Africa – which gives way to a myriad of business opportunities.

Economy: Ethiopia boasts one of the fastest-growing economies on the globe with an average 7%-12% annual growth rate. Ethiopia is driven by the agricultural sector – accounting for over 85% of Ethiopia’s employment. The country is also naturally rich in resources such as arable land, gas, Gold, copper, potash and platinum among others.

Payroll in Ethiopia - What You Should Know

  • Population: 117,876,226
  • Gross Domestic Product (GDP): $111.27 B
  • GDP Growth (April 2021): 5.6%
  • Inflation, consumer prices: 26.8%
  • Foreign Direct Investment (% of GDP): 2.2%
  • Unemployment Rate: 3.7%
  • Capital: Addis Ababa
  • Currency: Ethiopian birr
  • Languages: Amharic, Oromo, Afar, Somali, Tigrigna

Employer Contribution

  • 7.00% of the employer’s payroll must be contributed to social security.

Employee Contribution

  • 11.00% of the employee’s payroll must be contributed to social security.
  • Value-added tax (VAT)

    The standard VAT rate is 15% in Ethiopia – applied to the supply of goods and services both local and imported.

    Non-business organizations are exempt from charging Value-Added Tax on services but must still pay VAT on goods/services purchased.

    Exports of goods and services are zero-rated in Ethiopia.

Paid Time-Off

Employees are generally entitled to 16 days of paid annual leave plus one day per year of service. A worker with 5 years of service is entitled to 18 days of paid leave.

Sick Leave

In Ethiopia, workers are entitled to a maximum of 6 months of sick leave.

Maternity Leave

According to the Constitution of Ethiopia and Labor Proclamation, women are entitled to 120 days of paid maternity leave remunerated at 100% of their regular wage.

Paternity Leave

There is no statutory paternity leave in Ethiopia.

An employer can terminate a worker’s contract based on valid grounds such as:

  • The employee has demonstrated a loss of capacity or talent to accomplish their assigned work
  • If the employee’s health and well-being are compromised by their position
  • If the employee is unwilling to move to a locality as required by their company
  • When the position of the worker is dismissed for a valid cause and the worker cannot be transferred to another position

The employer must provide the notice to the employee in person. If not possible, the notice shall be affixed on the notice board in the workplace for 10 consecutive days.

Severance pay in Ethiopia is regulated as follows:

  • 30 x the average daily wages of the last week of service for the first year of service.
  • For less than a year of service, severance pay shall be calculated on a pro-rata basis.
  • The payment shall be increased by 1/3 of the sum for employees who accumulated more than a year of service. The total amount cannot exceed 12 months’ wage.
  • Wherever a contract is terminated in accordance with sections 24(4) and 29 of the labor code, the employee is eligible for a sum equal to sixty multiplied by his average daily salary of their last week of service.
  • Orthodox Christmas Day (7th January)
  • Timkat (20th January)
  • Adwa Victory Day (2nd March)
  • Good Friday (Eastern) (17th April)
  • Orthodox Easter (19th April)
  • Labour Day (1st May)
  • Patriots’ Victory Day (5th May)
  • Eid al-Fitr
  • Derg Downfall Day (28th May)
  • Eid al-Adha
  • Enkutash (11th September)
  • Meskel (28th September)
  • Prophet’s Birthday

While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.

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Countries We Cover

In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.

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Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collaborates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.

Grant brings a wealth of experience to his role, having served as Africa HR’s longest-serving employee. He holds a Bachelor of Commerce degree, with a major in Economics and Business Finance, from the University of Natal in South Africa. Additionally, he has completed a certification program in Payroll and Tax Administration from the University of Cape Town, further enhancing his expertise in HR operations and compliance.

His commitment to delivering exceptional service and his extensive knowledge of HR in Africa make him an invaluable member of the Africa HR team.




Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.

Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.

Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.



Head of Finance & Business Support

Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.

Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any organization.

In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any organization.



Head of Legal & Compliance

A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.

Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.

He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.

Alex Daruty - Africa HR Team


Head of Commercial

Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.

With experience in roles on both agency and corporate side, he has worked across international brands and has led the development and execution of multi-discipline campaigns across EMEA, NORAM and Asia Pacific.

His focus is on driving meaningful business impact through brand differentiation and building high-functioning, digitally oriented, and analytically driven capabilities. He is motivated by working with, and developing dynamic people, teams, and organizations.

He leads, manages, develops and mentors the Key Account Management department, including line management responsibility for the team of Key Account Managers and Key Account Administrator who represent the Company as the primary communication link between all relevant stakeholders, including clients, third party in-country partners and internal functions.

Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.