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 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.
Employer Contribution
Employee Contribution
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 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:
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.
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.
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.
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.
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.
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.
Onboard and pay your talents in Ethiopia without having to set up a legal entity with our extensive Employer of Record solutions.
Outsource your payroll and benefits administration to us and get access to best in class advantages for your employees.
We take care of your HR functions to help you save up on the overall cost and ensure your operations are carried out compliantly.
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.