Ethiopia
EOR Rate
$599
/month per employee

Hire employees in Ethiopia with Employer of Record (EOR)

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Country Snapshot

Currency

ETB

Timezone

UTC+3

Minimum Wage

420 ETB/Month

Payroll Frequency

Monthly

Employment Type

Full-time

Ethiopia is one of Africa’s fastest-growing economies with a large labor force and expanding industrial parks. Manufacturing, agriculture, and infrastructure investments are key drivers of growth.

General Information

CapitalAddis Ababa
Population135,472,051
TimezoneUTC+3
Official LanguageAmharic

Employment Laws

Working Hours48 hours/week
Minimum Wage420 ETB/Month
Probation Period1–3 months
Notice Period1 month

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Leave Entitlements

Annual Leave16 days
Public Holidays13 days
Sick LeavePaid sick leave, capped annually
Maternity Leave120 days (paid)
Paternity Leave3 days

Social Security

Employer Rate11%
Employee Rate7%

Public pension scheme; private sector covered separately

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Taxation

Corporate Tax15% - 30%

Rate depends on sector; manufacturing and agriculture may receive incentives

Termination Rules

Termination allowed for just cause; notice/severance required

Bonus Requirements:

No mandatory bonus

Additional Information

Under an EOR model in Ethiopia, employment requires formal contracts and adherence to statutory labor rules. Payroll administration includes mandatory social security contributions and regulated wage practices. Termination procedures are formalized and often require documented justification. Administrative processes can be complex. An EOR ensures compliance with local labor regulations.

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