Hire your remote team in Ethiopia

Rivermate is a global employment solutions company that provides Employer of Record services in Ethiopia.

As an employer of record, we help you hire employees and run payroll services in Ethiopia, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Ethiopia.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Ethiopia or individually hire remote employees in Ethiopia, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermate’s Employer of Record Ethiopia services can best help your company!

Ethiopia's cost of living is $732, which is 1.27 times less costly than the global average. Ethiopia scored 114th out of 197 nations in terms of cost of living and 149th in terms of quality of life.

In Ethiopia, the average after-tax earnings is $189, which is enough to meet living costs for 0.3 months.

Why does living in Ethiopia cost 3.9 times the average salary? Because we have a reference point of a developed nation lifestyle, and sustaining such a quality of living in certain least developed countries is difficult and costly. As a result, the expenses of living in Ethiopia for natives and foreigners varies dramatically.

Agriculture, construction, manufacturing, services, tourism, and food processing are among Ethiopia's key sectors. The majority of the population is self-employed. Employees in the public sector typically earn 14% more than those in the private sector.

Ethiopia is ranked 102nd in the world for mobile broadband speeds (average 23 Mbps) and 163rd for fixed broadband speeds (average 13 Mbps). However, digital penetration is greater in big cities than in rural regions. The country's distant knowledge resources are growing because to improved digital infrastructure.

Ethiopian labor law respects both the rights of employers and workers equally. Property rights, the judiciary, taxes, and the ease of conducting business all have an impact on labor laws. The following are some significant aspects of Ethiopian labor law.

- Minimum Wage - There is no national minimum wage for the private sector; it is totally determined by the agreement of the employer and the workers.

- Working Hours - The maximum number of working hours in a week is 48. Employers may choose between shorter and longer work hours. However, working hours should not exceed 10 hours every day.

- Working overtime is permissible if the employer pays the employee more than their usual compensation. The labor legislation precisely stipulates the proportion of overtime earnings in many scenarios, such as working overtime on a rest day, working overtime at night, or working on a public holiday.

- Holidays and Leaves - Employees in Ethiopia are entitled to 16 paid days off per year; employees with more than five years of service are eligible for 18 paid days off per year. There are other 13 public and religious festivals.

Recruiting in Ethiopia is a multifaceted job that involves extensive knowledge of the laws, trends, hiring expenses, city-specific living costs, and other factors.

The Ethiopian Birr (ETB) is a non-convertible currency, and its allocation to foreign exchange is determined by the National Bank of Ethiopia. At the current exchange rate, 1,000 ETB equals 23 USD. The average monthly wage is roughly 205 USD/8,900 ETB, while the cost of living for one person is approximately 669 USD/29,000 ETB. The current rate of unemployment is 19.10%.

Ethiopia has no national minimum wage. Only the public sector has a minimum wage, which is around 420 birr ($22). Some government agencies also have their own minimum wage.