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Compensation & Benefits in EtEthiopia.










Country Capital

Addis Ababa


Birr (ETB)

When you’re establishing a business internationally, managing compensation and benefits is a critical consideration. You need seamless benefits management to ensure your employees receive accurate, on-time payments and that your company meets all legal obligations to workers. G-P offers services to help you meet these international employer requirements. You can be confident that you’ll receive compensation management in compliance with local labor laws and market standards when you work with our expert in-country team.

Compensation Laws

Under Ethiopian law, you must provide regular, consistent compensation at the rates agreed upon in your contract. Standard payments are by the hour, and you are required to pay wages directly to the worker or an agreed-upon recipient. You should pay salaries in cash unless you and the worker agree to payments in kind. Any payments in kind must not exceed the market value for wages.

If your employees work a night shift, overtime, or during a public holiday or rest day, they are entitled to additional compensation at these rates:

  • Work between 6 a.m. and 10 p.m.: One and a quarter times regular wages
  • Work between 10 p.m. and 6 a.m.: One and a half times regular wages
  • Work on weekly rest days: Two times regular wages
  • Work on public holidays: Two and a half times regular wages

Guaranteed Benefits

Your employees may receive at least 16 days of annual paid leave after one year of service with your company and a minimum of 18 days after five or more years of employment. They are also entitled to up to six months of leave with pay rates based on the break duration.

Pregnant employees may receive 30 prenatal days and 90 postnatal days of paid leave.

As an employer, you are responsible for contributing to your employees’ social insurance and healthcare coverage.

Benefits Management and Dispersion

Depending on job requirements and the work environment, you may consider offering additional benefits to help your employees in their work. Evaluate your industry standards, any operational requirements you may have, and employees’ living needs. Some services or assistance you could provide to help your workers deliver optimal job performance include:

  • A company car
  • Relocation and housing assistance
  • Performance awards and bonuses
  • A company mobile phone
  • Continuing education opportunities
  • Meal vouchers

When you’re developing a benefits strategy for your business, you need to consider both local market standards and your company’s budget. G-P’ expert team can help you balance these critical factors and find the best solutions for your operations. With knowledge of best practices in your industry and regional economic expectations, we’ll help you develop a streamlined solution with our Ethiopia benefits outsourcing.

Our goal is to help your business flourish in a new region, and we can scale benefits packages to fit your growth rate as a company. When you offer outstanding benefits for your employees, you’ll be able to attract exceptional candidates and boost worker satisfaction on your team.

Restrictions for Benefits and Compensation

Any restrictions to benefits and compensation are outlined in Ethiopia compensation laws. To ensure fair working conditions for employees, the country has regulations regarding minimum wage and working conditions. All employees are entitled to fair treatment, and employers are prohibited from discriminating based on religion, nationality, sex, political ideology, race, color, marital status, family responsibilities, pregnancy, descendants, or lineage.

As an employer, you are responsible for ensuring your employees do not work more than 10 hours a day, including overtime.

Get Seamless Compensation Outsourcing With G-P

If you’re interested in learning more about what we have to offer, our team is here to help. Reach out to our team to discuss how we can manage your compensation and benefits requirements globally.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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