EOR Solutions
Ethiopia Employer of Record (EOR) Services
Compliantly hire and pay employees in Ethiopia.
No in-country entity needed.
Breedj offers employer of record solutions in Ethiopia. Through the Breedj platform, businesses of all sizes can compliantly hire and pay local nationals and expats alike.
Our platform provides a range of comprehensive solutions that simplifies EOR processes, allowing your business to operate seamlessly and in full compliance with local employment laws.
Ease of doing business in Ethiopia
Ethiopia is steadily becoming a more attractive destination for global organizations seeking to expand into Africa. According to the World Bank’s latest Doing Business report, Ethiopia ranked 159th out of 190 economies in the ease of doing business ranking for 2021, up from 173rd in the previous year. While this ranking may seem low, Ethiopia has made significant progress in recent years in improving the business environment for foreign investors.
The Ethiopian government has implemented several reforms aimed at streamlining administrative procedures, reducing bureaucratic red tape, and improving access to credit. These efforts have resulted in a more favorable regulatory environment for businesses in sectors such as manufacturing, agriculture, and energy.
For international organizations, Ethiopia’s improving ranking means a more conducive business climate and greater opportunities for growth and profitability. However, navigating the complexities of the local labor laws and regulations can still be a challenge. That’s where Breedj comes in. With our comprehensive EOR solutions, we provide our clients with instant access to local expertise, enabling them to focus on their core business while ensuring compliance with the local laws and regulations.
Hiring in Ethiopia
Global companies looking to expand their operations in Ethiopia have several options when it comes to hiring employees. One option is to set up their own legal entity in the country, which requires a significant investment of time, resources, and capital. While this option provides companies with greater control over their operations, it also exposes them to the risks and complexities of local labor laws and regulations.
Another option is to use an Ethiopia EOR solution, such as the ones provided by Breedj. With our Ethiopia employer of record solutions, companies can hire employees quickly and efficiently, without the need for a legal entity in the country. Breedj acts as the legal employer of the employees, taking care of payroll, taxes, benefits administration, and compliance with local labor laws and regulations.
Choosing an Ethiopia EOR solution offers several advantages for global companies. First, it enables them to enter the Ethiopian market quickly, with minimal investment and administrative burden. Second, it provides them with instant access to local expertise, enabling them to navigate the complexities of the local labor laws and regulations. Third, it enables them to focus on their core business, while leaving the administrative tasks to a trusted partner like Breedj.
Country fact sheet
Ethiopian birr (ETB)
Addis Ababa
117 million (2021)
East Africa
GMT+3
Amharic
Compliance guaranteed
Breedj's local employment expertise in Ethiopia
By partnering with Breedj, you can eliminate the need to establish an in-country entity, and thus, saving valuable time and resources while benefiting from our local expertise to guarantee full compliance for your business operations.
Our platform has been designed to seamlessly take care of every aspect of the local employment environment, while you focus on your core operations.
Employment contracts
We handle employment contracts for both global employees and contractors.
Guaranteed compliance
Breedj ensures full compliance with your workers' local labor laws.
Global payroll
Our platform ensures accurate and timely international salary payments.
Legal expertise
Leverage Breedj's extensive expertise to navigate diverse employment laws.
Tax & contributions
Breedj handles tax & mandatory contributions as required by local labor laws.
Multiple currencies
Your workers are paid in their local currency, directly to their bank account.
Statutory labor laws in Ethiopia
Ethiopia has a comprehensive set of labor laws and regulations that govern the relationship between employers and employees. Some of the key statutory labor laws in Ethiopia include:
Employee Probation Period: A probation period cannot exceed 60 days.
Annual Leave in Ethiopia: Workers are entitled to 16 working days of paid annual leave on completion of one year of service plus one working day for every additional year of service. For a worker with 5 years of service, the period of paid annual leave is 18 working days (one day extra for every two additional years of service).
Maternity Leave in Ethiopia: Female workers are entitled to fully paid maternity leave of 120 working days (30 days antenatal and 90 days postnatal) on the recommendation of a medical doctor.
Paternity Leave in Ethiopia: Fathers are entitled to 3 days of paternity leave.
Sick Leave in Ethiopia: An employee is entitled to a maximum of 6 months of sick leave within 1 year of service.
These labor laws are designed to protect the rights of workers in Ethiopia and ensure fair and equitable treatment in the workplace. However, for global companies, complying with these laws can be a challenge, especially if they are not familiar with the local legal framework.
At Breedj, we have a deep understanding of the labor laws and regulations in Ethiopia, and we ensure that our clients remain compliant with all applicable laws and regulations.
Labor regulations
16 days
15 days
4 months
3 days
2 months
Choose an EOR platform with a sustainable vision.
Become part of a collective effort to shape a more sustainable world and directly contribute to the United Nations Development Goals (SDGs).
Social security in Ethiopia
In Ethiopia, employers are required to contribute to the social security scheme on behalf of their employees. The current rate of contribution is 11% of the employee’s basic salary, while the employee’s contribution is 7%.
The social security scheme in Ethiopia provides several benefits to employees, including healthcare, pension benefits, and disability benefits. For employers, contributing to the social security scheme is not only a legal obligation, but also a way to provide their employees with valuable social benefits that can help promote employee retention and engagement.
Complying with the social security laws and regulations in Ethiopia can be challenging for global companies, especially if they are not familiar with the local legal framework. That’s where Breedj comes in. We ensure that our clients remain compliant with all applicable social security laws and regulations in Ethiopia, while also helping them provide their employees with the social benefits they need to thrive in the workplace.
By partnering with Breedj, global companies can ensure that their employees in Ethiopia receive fair treatment and valuable social benefits, while also maintaining compliance with local laws and regulations.
Breedj's platform
54 countries
Africa
Supports multiple currencies
Onboard workers in less than 24 hours
Testimonials
What they say about Breedj
Breedj streamlined our global hiring process, making it easy to find and pay remote talents. Our team loves how the platform handles payments and compliance.
Global expansion simplified
Confidently expand to Ethiopia
Breedj stands out as the preferred global employment solutions provider for several reasons, offering organizations a competitive edge with a range of scalable global employment solutions.
Cost effective
Drastically reduce administrative and overhead costs related to managing global employees.
100% compliant
Stay up to date with the ever changing global legislations, policies and local labor laws.
Peace of mind
Get direct access to our global employment experts to mitigate legal risks and penalties.
Fast-track market entry
Bypass the complexities associated with establishing a branch office or in-country.
Help emerging countries
Encourage growth and uplift lesser served regions by giving a job to talented remote professionals.
Support United Nations development goals
Directly support at least four sustainable development goals, simply by using our platform.
