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Labor Laws in Ethiopia

  • Annual Leave: 16 days
  • Maternity Leave: 120 days
  • Public Holidays: 13
  • Workweek: 48 hours per week.

Income Tax in Ethiopia

Ethiopia has progressive personal income tax rates from 0 to 35% depending on total income.

Value Added Tax (VAT) in Ethiopia

The standard VAT is 15%.

Social Security in Ethiopia

Employer Contributions

Employers contribute 11% of the employee's basic salary to the social security fund. The employer's contributions finance old-age, disability, survivors', and work injury benefits.

Employee Contributions

Employees contribute 7% of their basic salary to the social security fund. The employee's contributions also finance old-age, disability, survivors', and work injury benefits.

Work Visas Ethiopia

There are several types of work visas available for foreigners to legally work in Ethiopia.

  • Foreign Business Firm Employment Visa: Ideal for employees of foreign-owned companies in Ethiopia. Valid for 30 or 90 days (single or multiple entry), with extension possibilities.
  • Government Employment Visa: For those directly employed by the Ethiopian government.
  • Spouses are not permitted to file joint returns.
  • The Ethiopian Private Business Firm Work Visa: Designed for foreigners working in Ethiopian-owned businesses.

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Setting up a company in Ethiopia can be expensive and complex. Global Expansion simplifies your entry into this market.

We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.

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