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Population
Ethiopia has about 126 million inhabitants (as of 2024), making it the second most populous country in Africa after Nigeria. The population is very young, with the majority living in rural areas.
Capital
The capital of Ethiopia is Addis Ababa. It is the political, economic, and cultural center of the country and the seat of the African Union.
Economic Power
Ethiopia’s economy is one of the fastest-growing in Africa, but the country is still heavily affected by poverty. The GDP per capita is around USD 1,000 (as of 2023). Agriculture is the largest sector, employing the majority of the population. However, there are growing industries in textiles, construction, and services.
Culture
Ethiopia has a rich and unique culture, strongly influenced by the Orthodox Church, Islam, and millennia-old traditions. The country has its own script (Ge’ez), and traditional music, dances, and festivals play a large role in social life. Ethiopia is also known for its cuisine, which often includes flatbread (injera) and spicy dishes.
Currency
The official currency in Ethiopia is the Ethiopian Birr (ETB).
Health Insurance and Social Security System
Ethiopia has a limited social security system. Healthcare is mostly privately organized, as the public system is often insufficient. Social security mainly covers pensions and work-related accidents, but not all workers, especially those in the informal sector, are included.
Costs for Employers
Employers in Ethiopia are required to contribute around 11% of the gross salary to social security. Additional costs may arise from extra benefits such as transportation and meals.
Salaries and Bonuses
Salaries in Ethiopia vary greatly by industry and qualifications. A legal minimum wage exists only for the public sector. In the private sector, wages depend on company policies. Bonuses are typically performance-based and are not legally regulated.
Payroll
Payroll in Ethiopia includes the basic salary, possible allowances, bonuses, and statutory deductions such as taxes and social security contributions.
Public Holidays
Ethiopia has several public holidays, including:
- New Year (September 11)
- Meskel (September 27)
- Timkat (Epiphany, January 19)
- Labor Day (May 1)
- Liberation Day (May 28)
- Various religious holidays based on the Ethiopian Orthodox and Muslim calendars.
Working Hours
The regular working hours are 40 hours per week, spread over five working days. Sunday is usually a rest day, and working hours may vary depending on the industry and agreements.
Vacation
Employees are entitled to at least 14 days of paid annual leave, which increases with length of service. There are additional leave days for special occasions such as weddings or religious celebrations.
Incapacity for Work
In case of illness, employees are entitled to paid sick leave, with the duration and compensation depending on the employment contract and legal provisions.
Termination/Severance Pay
Notice periods and severance pay regulations in Ethiopia depend on the length of employment and the reason for termination. Employees may receive severance pay, especially in cases of termination without good cause or in the event of mass layoffs.