Ethiopia
VerifiedKey Figures
Income Tax Range
0%–35%
Tax year 2025
Employer Contribution Rate
11% + 18%
On gross salary
Employee SS Rate
7%
Deducted from gross
Minimum Wage
—
—
Income Tax Brackets
Tax year 2025
| Bracket | Income Range | Rate |
|---|---|---|
| First Bracket | ETB 0 — ETB 2,000 | 0% |
| First Bracket | ETB 2,001 — ETB 3,200 | 15% |
| Third Bracket | ETB 3,201 — ETB 5,250 | 15% |
| Fourth Bracket | ETB 5,251 — ETB 7,800 | 20% |
| Fifth Bracket | ETB 7,801 — ETB 7,800 | 25% |
| Sixth Bracket | ETB 10,801 — ETB 14,000 | 30% |
| Top Bracket | ETB 14,001 — and above | 35% |
Social Security Contributions
Employee and employer contribution rates
Employee Contributions
Employee Social Security
Employer Contributions
Employer Social Security
Private Organization Social Security
Employment Rules Summary
Key obligations for employers in Ethiopia
Minimum Wage
—
Annual Leave
16 days
Sick Leave
180 days
Notice Period
30 days
Probation Period
3 days
Maternity Leave
120 weeks
Paternity Leave
3 weeks
Overtime Rate
1.5× standard rate
Payroll Frequency
Monthly
13th Month Pay
Not required
Health Insurance Schemes
Employer obligations in Ethiopia
Ethiopian Community-Based Health Insurance
PublicEthiopia operates a developing public health system funded via general government budget. Formal sector employees are typically covered by the Social Health Insurance (SHI) scheme under CBHI expansion. Employer contribution rates are being phased in under the Health Insurance Agency (EHIA).
Employer
—
Official Sources
Government authorities for Ethiopia employment and tax
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Ethiopia - Estimates only
Estimates only - Not professional tax advice
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Payroll Calculator
Full gross-to-net breakdown
Tax Guide
Income, corporate, VAT rates
Payroll Guide
Payroll process and obligations
Employment Law
Contracts, notice, termination
Hiring Guide
How to hire in Ethiopia
HR Compliance
Working time, data protection
Leave & Benefits
Annual, sick, parental leave
Compliance Calendar
Filing deadlines and penalties
EOR Guide
Employer of Record in Ethiopia
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Data Disclaimer
All data is sourced from official government publications and updated monthly. This is for reference only and does not constitute professional tax or legal advice. Always verify with a qualified local advisor.
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