Ethiopia is the second-most populous country in Africa, with 117 million people in 2021. Its domestic economy has grown at an impressive average of 9.5% in the last 15 years, and 6.3% in FY21. The country has managed to reduce poverty in both urban and rural areas, and aims to achieve lower-middle-income status by 2025.
Addis Ababa, Gondar, Bahir Dar
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The top local universities in Ethiopia with ranks are mentioned below:
The below table mentions some common jobs with average monthly salaries in Ethiopia:
|Job Title||Average Monthly Salary (ETB)||Average Monthly Salary (USD)|
|Financial Manager||17,700 ETB||331.46 USD|
|General Manager||15,100 ETB||282.77 USD|
|Business Development Manager||14,100 ETB||264.05 USD|
|Financial Analyst||11,600 ETB||217.23 USD|
|Business Analyst||10,700 ETB||200.38 USD|
|Project Manager||10,200 ETB||191.01 USD|
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Ethiopia follows a monthly payroll cycle.
The minimum wage in Ethiopia exists only for the public sector at 420 ETB per month and the banking sector at 336 ETB per month. Government entities set their own minimum wages.
The standard working hours in Ethiopia are 8 hours per day and 48 hours per week. The overtime compensation is provided as below:
There is no law that mandates 13th-month pay in Ethiopia.
|Monthly taxable income (in ETB)||Tax rate|
|0 – 600||0%|
|601 – 1,650||10%|
|1,651 – 3,200||15%|
|3,201 – 5,250||20%|
|5,251 – 7,800||25%|
|7,801 – 10,900||30%|
|10,901 and above||35%|
The standard rate of Value-Added Tax in Ethiopia is 15%.
Employers in Ethiopia can terminate an employment contract with a justified reason by providing a written notice and specifying the last date of work.
Termination by an employer is legal on grounds of expiration of the contract, death of the employee, insolvency of business, unsatisfactory performance or mutual agreement. The employee can give a 15-day notice in advance requesting a termination on the grounds of criminal assault from the employer or unfulfilled terms and conditions.
The notice period in Ethiopia is as follows:
|Length of service||Notice period|
|1 year||1 month|
|1 – 9 years||2 months|
|More than 9 years||3 months|
The severance pay in Ethiopia is 30 days’ regular salary for the first year of employment. From the succeeding year, the severance pay increases at the rate of 1/3rd of the previous sum per year of service. This pay is capped at a maximum of 12 months’ pay.
|Length of severance||Severance pay|
|1 year||30 days|
|More than 1 year||1|
Foreign citizens relocating to Ethiopia for work must have a work permit before their first day of work. However, nationals of the following countries can work in Ethiopia without a visa:
Moreover, a diplomatic or service passport holder of any country (except Pakistan and Somalia can stay in Ethiopia for up to 3 months.
There are three ways to apply for an Ethiopian work visa: online, on arrival, and in the Embassy. The Ethiopian eVisa and on-arrival visas are granted to individuals visiting the country only once for a maximum of 90 days. It does not support multiple-entry and long-term extensions. On the other hand, individuals arriving through an entry point other than Addis Ababa Bole International Airport must visit the Embassy for a work visa. The Embassy-issued work visa supports multiple entries and extensions.
|Overtime Period||Overtime Pay|
|6 AM – 10 PM||150%|
|10 PM – 6 AM||175%|
|Weekly rest day||200%|