African Market Entry and Expansion for Multinationals


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Hiring Employees in Ethiopia

Spoken Language

English is the official language, and Oromifa, Tigrigna and Somali are the major recognized languages.


Ethiopian Birr (ETB)

Average hours & Overtime

Regular hours and overtime pay rates are set in the labour law and the same is reflected in the employment contracts. Stipulated work hour is a maximum of 48 hours per week (5/5.5 days) excluding 1 hour lunch break.

Wages and salaries

There is no minimum wage rate

Observed National Holidays and vacation

13 paid holiday per annum:
Ethiopian Christmas;
Victory Day of Adwa
Birthday of the Prophet Mohammed (Maulid)
Good Friday
International Labor Day
Patriots Victory Day
Downfall of the Dergue
New Year
Finding of the True Cross (Meskel)
Id Al Fater (Ramadan)
Id Adha (Afafa)Any other holiday declared by the government through a press release statement

Paid Leave

A minimum of 16 paid annual leave days are granted to employees per year. Maternity leave is a minimum of 16 weeks paid leave while paternity leave is optional.

Expats, Visas, & Work Permits

Employers are responsible for obtaining work & residence permits for their expatriate employees. Foreign investors must be granted expatriate quota approval to employ expatriates.

Termination Notice

Notice period depends on the contractual agreement but ranges from 1 -2 months depending up on the position and year of service.In any case other than the above, employer shall give one month notice or one month salary in lieu of notice and the same apply for an employee.

Statutory Deductions

Statutory payroll deductions include:
∙ Pension Contribution (7%)
∙ PAYE (as per the tax calculation rate)

Health Insurance

Provision of health insurance (GPA/Workmen’s/Life) for employees is a common practice and the minimum is mandatory.

Important Information

Local employee who passes 60 days probation period is considered as a permanent. The Employment contract could be terminated anytime without a prior notice before the end of the probation period.

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