Employee benefitsin Ethiopia

Last Mile Health’s March 2024 program-country policy funds local medical cover fully for an employee and up to 4 beneficiaries.

Last Mile Health’s March 2024 program-country policy includes mental-health support through an employee resilience programme.

When a worker suffers an employment injury, the employer covers general and specialist medical or surgical care, hospital and pharmaceutical care, and necessary prosthetic or orthopedic appliances. Cash protection for temporary or permanent incapacity and dependants follows the applicable employment-injury and pension framework.

Covered private organizations pay 11% of salary and deduct 7% from employees for the statutory pension fund, which supports retirement and related social protection. The statutory salary base is monthly remuneration for regular working hours before tax and other deductions. Coverage centers on Ethiopian-national salaried employees engaged for at least 45 days and includes managers; foreign nationals of Ethiopian origin and international agreements require their own scope checks. Employers remit the combined contribution monthly.

At the statutory retirement age, a covered employee with at least 10 service years qualifies for a pension. The pension starts at 30% of the average salary of the final 3 years, increasing by 1.25 percentage points for every service year beyond 10, up to 70%. A retiree with fewer than 10 years instead receives a gratuity based on 1.25 months of the preceding salary for each service year. Statutory safeguards limit recognition of exceptional late salary increases.

An employee who completed probation and is not eligible for pension can receive severance for the termination grounds listed by law, including closure, unlawful dismissal, workforce reduction and specified justified resignations. The first year pays 30 times the final week’s average daily wage, proportionally for shorter service. Each additional year adds one-third of that first-year amount, with total ordinary severance capped at 12 months’ wages. Closure under article 24(4) or workforce reduction under article 29 adds 60 daily wages.

Last Mile Health’s March 2024 program-country policy includes supplemental emergency insurance for selected conditions treated outside the country.

Last Mile Health’s March 2024 program-country policy pays USD 200 on a close family death, up to 3 occasions annually.

Last Mile Health’s March 2024 program-country policy matches employee savings up to 3% of salary through a local bank.

Employees receive 16 working days of paid annual leave for the first service year, increasing by 1 working day for each additional 2 years of service. The first leave is granted after 1 year; pay equals normal earnings. Leave can be split in two with the worker’s request and employer agreement, or postponed for no more than 2 years. Unused entitlement is paid at termination, including proportional entitlement for shorter service.

After probation, an employee unable to work because of illness unrelated to a work injury can take up to 6 months of sick leave within 12 months from the first sickness day. The employer pays 100% of wages for the first month, 50% for the next 2 months, then no wages for the final 3 months. A valid certificate from a recognized medical facility is required; notify the employer by the day after absence unless already known or impracticable.

Employees receive 3 working days of paid leave for marriage or the death of a spouse, a relative in the direct family line above or below them (such as a parent, grandparent, child or grandchild), a sibling, uncle or aunt, including the specified relationships by marriage. Exceptional serious events can justify up to 5 consecutive unpaid days, no more than twice in a budget year. Advance notice and supporting evidence are required when requested.

Last Mile Health’s March 2024 program-country policy includes approximately 1 week of year-end office closure.

Pregnant employees receive 30 consecutive days of paid prenatal leave and 90 consecutive days after birth. The employer also provides paid time for pregnancy examinations, with medical evidence where requested, and medically recommended pregnancy leave. A late birth can extend prenatal leave until delivery; early delivery starts postnatal leave. Pregnancy-related dismissal protections also extend for 4 months after delivery, subject to specified unrelated lawful grounds.

A male employee receives 3 consecutive days of paternity leave at full pay when his spouse gives birth. The employer funds the wages; consecutive days are distinct from 3 working days.

Last Mile Health’s March 2024 program-country policy provides up to USD 900 per employee annually for children’s school fees.

The current holiday law provides 4 national closure holidays and 8 religious closure holidays, paid under the applicable labor rules. They include Ethiopian New Year, Adwa Victory, International Workers’ Day, Patriots’ Victory Day, Meskel (the Christian festival of the discovery of the True Cross), Ethiopian Christmas, Epiphany, Good Friday, Easter, the Prophet’s Birthday, Eid al-Fitr (marking the end of Ramadan fasting) and Eid al-Adha (the Festival of Sacrifice). Ethiopian Martyrs’ Day and Nations and Nationalities Day are memorial observances when institutions remain open. Essential and specified services can continue operating on holidays.

A general 13th-month salary is not required by the Labour Proclamation. An employer can nevertheless create an enforceable additional payment through employment terms, work rules or a collective agreement.

Annual bonuses are common in formal employment. The employer’s contract or policy sets performance conditions and payment timing; an annual bonus does not automatically equal an extra month’s salary.

Meal allowances supplement salary with employer support for food costs during employment. Employer terms set the payment and eligibility.

Transport allowances contribute to commuting costs alongside salary. The employment package sets eligible workers and payment terms.

Housing allowances add an employer-funded contribution to employees’ living costs. The employment package determines eligibility and payment.

Last Mile Health’s March 2024 program-country policy lists a monthly transportation benefit of USD 50–75.

Last Mile Health’s March 2024 program-country policy supports phone and internet costs according to role and location.

Tilla Health advertised an Ethiopian part-time telehealth physician role performed remotely through its app, with flexible scheduling. The arrangement is a role-specific example; another employer, Last Mile Health, states that its Ethiopian staff work on site.

Last Mile Health supports development goals and learning linked to employees’ roles and organizational needs.

The Labour Proclamation covers employment relationships, including recruitment, but excludes managerial employees and people working for a fee under their own business or professional responsibility. A genuine independent contractor therefore does not acquire employee leave or termination rights simply by signing a service agreement. The actual working relationship determines the appropriate framework.

Employment contracts generally need no special form unless another law requires one. Written contracts identify both parties, the worker’s age, address and work-card number where applicable, agreed duties, workplace, wages, payment arrangements and duration, and carry both signatures. If employment was agreed orally, the employer must provide signed written particulars within 15 days. Employment is normally indefinite unless a permitted fixed-term or task-based ground applies.

Monthly payroll is the reported operating practice. The legal payment interval follows the applicable law, collective agreement, work rules or employment contract. Employers keep a wage register showing gross pay, calculation method, additional remuneration, deductions and net pay; workers can ask to inspect it and receive an explanation.

General private-sector wages are set by employment terms rather than a single nationwide statutory minimum. The Labour Proclamation provides for a wage board to revise minimum wages; employers must also account for any applicable sectoral or collective terms. Public-service salary scales are a separate regime.

Normal work is limited to 8 hours a day and 48 hours a week. Permitted overtime cannot exceed 4 hours a day or 12 hours a week and must be recorded. Extra hours are paid at 1.5 times the ordinary hourly rate between 06:00 and 22:00, 1.75 times between 22:00 and 06:00, 2 times on a weekly rest day and 2.5 times on a public holiday, alongside normal wages. Weekly rest is at least 24 uninterrupted hours.

Probation must be agreed in writing and cannot exceed 60 working days from the first employment date. Re-employment by the same employer in the same job cannot restart probation. If the worker proves unsuitable during probation, the employer can end employment without notice, severance or compensation; continued employment counts service from the original start. Managerial employees fall outside this Labour Proclamation.

Ordinary employer notice is 1 month after probation through 1 year of service, 2 months for service above 1 through 9 years, and 3 months above 9 years. Workforce reduction after probation carries 2 months’ notice. Notice is written and states reasons and the effective date; fixed-term or task contracts use the agreed notice. A worker normally gives 30 days’ resignation notice. Final wages and termination payments are due within 7 working days, with a specific extension for employee-caused failure to return property or money.

Monthly employment income is taxed progressively: up to ETB 2,000 at 0%; ETB 2,001–4,000 at 15%; ETB 4,001–7,000 at 20%; ETB 7,001–10,000 at 25%; ETB 10,001–14,000 at 30%; and income above ETB 14,000 at 35%. These are employment-income brackets in birr, rather than dollar-denominated bands or a single flat rate on the entire salary.