Ethiopia

Sources and data for Ethiopia

Every value the calculators use, with its effective dates and a link to the official source.

Monthly employment income tax (Schedule A)
Current value
Table with 6 brackets
ETB 0 / ETB 2,000 0%
ETB 2,000 / ETB 4,000 15%
ETB 4,000 / ETB 7,000 20%
ETB 7,000 / ETB 10,000 25%
ETB 10,000 / ETB 14,000 30%
ETB 14,000 + 35%
From
July 8, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, Article 1(6), new Article 11
Checked on
October 27, 2026
Annual rental income tax for individuals (Schedule B)
Current value
Table with 6 brackets
ETB 0 / ETB 24,000 0%
ETB 24,000 / ETB 48,000 15%
ETB 48,000 / ETB 84,000 20%
ETB 84,000 / ETB 120,000 25%
ETB 120,000 / ETB 168,000 30%
ETB 168,000 + 35%
From
July 8, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, Article 1(8), new Article 14(2)
Checked on
October 27, 2026
Annual business income tax for individuals (Schedule C)
Current value
Table with 6 brackets
ETB 0 / ETB 24,000 0%
ETB 24,000 / ETB 48,000 15%
ETB 48,000 / ETB 84,000 20%
ETB 84,000 / ETB 120,000 25%
ETB 120,000 / ETB 168,000 30%
ETB 168,000 + 35%
From
July 8, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, Article 1(10), new Article 19(2)
Checked on
October 27, 2026
Tax on dividends paid to a resident
Current value
15%
From
July 8, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, new Article 57(1)
Checked on
October 27, 2026
Tax on interest earned by a resident
Current value
10%
From
July 8, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, new Article 58(1)
Checked on
October 27, 2026
Tax on royalties earned by a resident
Current value
10%
From
July 8, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, new Article 56(1)(a)
Checked on
October 27, 2026
Tax on royalties from art and culture
Current value
5%
From
July 8, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, new Article 56(1)(b)
Checked on
October 27, 2026
Tax on winnings from games of chance
Current value
20%
From
July 8, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, new Article 59(1)
Checked on
October 27, 2026
Withholding tax on supplies of goods and services
Current value
3%
From
August 7, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, Article 1(36), new Article 97(1)
Checked on
October 27, 2026
Withholding threshold for goods (one transaction or contract)
Current value
ETB 20,000
From
August 7, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, new Article 97(1)(a)
Checked on
October 27, 2026
Withholding threshold for services (one contract)
Current value
ETB 10,000
From
August 7, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, new Article 97(1)(b)
Checked on
October 27, 2026
Withholding rate when the supplier gives no TIN or business licence
Current value
30%
From
August 7, 2025
Source
Federal Negarit Gazette (Ministry of Revenue)Income Tax (Amendment) Proclamation No. 1395/2025, Federal Negarit Gazette No. 64, 1 September 2025, Article 1(37), new Article 97(4)
Checked on
October 27, 2026
VAT standard rate
Current value
15%
From
August 21, 2024
Source
Federal Negarit Gazette (Ministry of Revenue)Value Added Tax Proclamation No. 1341/2024, Federal Negarit Gazette No. 61, 21 August 2024, Article 8(2)(b)
Checked on
October 27, 2026
VAT registration threshold (12 months of taxable supplies)
Current value
ETB 2,000,000
From
August 21, 2024
Source
Federal Negarit Gazette (Ministry of Revenue)Value Added Tax Proclamation No. 1341/2024, Federal Negarit Gazette No. 61, 21 August 2024, Article 12(2)
Checked on
October 27, 2026
Employee pension contribution (private sector)
Current value
7%
From
July 8, 2025
Source
Private Organizations Employees Social Security Administration (POESSA)Pension: contributions and service pension (Proclamation 1268/2014 E.C.), section 2
Checked on
October 27, 2026
Employer pension contribution (private sector)
Current value
11%
From
July 8, 2025
Source
Private Organizations Employees Social Security Administration (POESSA)Pension: contributions and service pension (Proclamation 1268/2014 E.C.), section 2
Checked on
October 27, 2026
Service pension for the first 10 years of service
Current value
30%
From
July 8, 2025
Source
Private Organizations Employees Social Security Administration (POESSA)Pension: contributions and service pension (Proclamation 1268/2014 E.C.), worked example of the service pension
Checked on
October 27, 2026
Service pension for each year after the first 10
Current value
1.25%
From
July 8, 2025
Source
Private Organizations Employees Social Security Administration (POESSA)Pension: contributions and service pension (Proclamation 1268/2014 E.C.), worked example of the service pension
Checked on
October 27, 2026
Minimum service for a service pension
Current value
10 years
From
July 8, 2025
Source
Private Organizations Employees Social Security Administration (POESSA)Pension: contributions and service pension (Proclamation 1268/2014 E.C.), conditions for a service pension
Checked on
October 27, 2026
Retirement age
Current value
60 years
From
July 8, 2025
Source
Private Organizations Employees Social Security Administration (POESSA)Pension: contributions and service pension (Proclamation 1268/2014 E.C.), conditions for a service pension
Checked on
October 27, 2026
Months of salary averaged for the pension
Current value
36 months
From
July 8, 2025
Source
Private Organizations Employees Social Security Administration (POESSA)Pension: contributions and service pension (Proclamation 1268/2014 E.C.), worked example of the service pension
Checked on
October 27, 2026
Overtime pay multipliers
Current value
- Overtime between 6 a.m. and 10 p.m. 1.5
- Overtime between 10 p.m. and 6 a.m. 1.75
- Work on your weekly rest day 2
- Overtime on a public holiday 2.5
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 68(1)
Checked on
October 27, 2026
Pay for each hour worked on a public holiday
Current value
2
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 75(1)
Checked on
October 27, 2026
Maximum normal hours a week
Current value
48 hours
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 61(2)
Checked on
October 27, 2026
Maximum normal hours a day
Current value
8 hours
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 61(2)
Checked on
October 27, 2026
Maximum overtime a day
Current value
4 hours
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 67(2)
Checked on
October 27, 2026
Maximum overtime a week
Current value
12 hours
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 67(2)
Checked on
October 27, 2026
Annual leave for the first year of service
Current value
16 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 77(1)(a)
Checked on
October 27, 2026
Years of service for each extra day of annual leave
Current value
2 years
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 77(1)(b)
Checked on
October 27, 2026
Days of service counted as one month for leave
Current value
26 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 77(3)
Checked on
October 27, 2026
Severance pay for the first year of service
Current value
30 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 40(2)
Checked on
October 27, 2026
Severance increase for each additional year (share of the first-year amount)
Current value
0.33
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 40(3)
Checked on
October 27, 2026
Severance pay cap
Current value
12 months
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 40(3)
Checked on
October 27, 2026
Extra pay on closure or reduction of workforce
Current value
60 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 40(4)
Checked on
October 27, 2026
Compensation when the worker leaves under Article 32(1)
Current value
30 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 41(1)
Checked on
October 27, 2026
Compensation when the worker leaves under Article 32(1)(b)
Current value
90 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 41(2)
Checked on
October 27, 2026
Service needed for severance on resignation, sickness or death
Current value
5 years
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 39(1)(h)
Checked on
October 27, 2026
Employer notice: service up to one year
Current value
1 month
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 35(1)(a)
Checked on
October 27, 2026
Employer notice: more than one and up to nine years
Current value
2 months
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 35(1)(b)
Checked on
October 27, 2026
Employer notice: more than nine years
Current value
3 months
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 35(1)(c)
Checked on
October 27, 2026
Employer notice: reduction of workforce
Current value
2 months
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 35(1)(d)
Checked on
October 27, 2026
Maximum probation period
Current value
60 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 11(3)
Checked on
October 27, 2026
Sick leave on full pay
Current value
1 month
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 86(1)
Checked on
October 27, 2026
Sick leave on half pay
Current value
2 months
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 86(2)
Checked on
October 27, 2026
Pay during the half-pay months of sick leave
Current value
50%
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 86(2)
Checked on
October 27, 2026
Sick leave without pay
Current value
3 months
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 86(3)
Checked on
October 27, 2026
Paid prenatal leave
Current value
30 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 88(3)
Checked on
October 27, 2026
Paid postnatal leave
Current value
90 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 88(3)
Checked on
October 27, 2026
Paid paternity leave
Current value
3 days
From
September 5, 2019
Source
Federal Negarit Gazette (FAOLEX copy)Labour Proclamation No. 1156/2019, Federal Negarit Gazette No. 89, 5 September 2019, Article 81(2)
Checked on
October 27, 2026

Values that update automatically

Indicative daily exchange rate, birr per US dollar (weighted average)
Current value
ETB 161.1935
Latest figure
November 13, 2026
Source
National Bank of EthiopiaIndicative daily exchange rates

ETB 0 / ETB 2,000	0%
ETB 2,000 / ETB 4,000	15%
ETB 4,000 / ETB 7,000	20%
ETB 7,000 / ETB 10,000	25%
ETB 10,000 / ETB 14,000	30%
ETB 14,000 +	35%

ETB 0 / ETB 24,000	0%
ETB 24,000 / ETB 48,000	15%
ETB 48,000 / ETB 84,000	20%
ETB 84,000 / ETB 120,000	25%
ETB 120,000 / ETB 168,000	30%
ETB 168,000 +	35%

Monthly employment income tax (Schedule A)

Annual rental income tax for individuals (Schedule B)

Annual business income tax for individuals (Schedule C)

Tax on dividends paid to a resident

Tax on interest earned by a resident

Tax on royalties earned by a resident

Tax on royalties from art and culture

Tax on winnings from games of chance

Withholding tax on supplies of goods and services

Withholding threshold for goods (one transaction or contract)

Withholding threshold for services (one contract)

Withholding rate when the supplier gives no TIN or business licence

VAT standard rate

VAT registration threshold (12 months of taxable supplies)

Employee pension contribution (private sector)

Employer pension contribution (private sector)

Service pension for the first 10 years of service

Service pension for each year after the first 10

Minimum service for a service pension

Retirement age

Months of salary averaged for the pension

Overtime pay multipliers

Pay for each hour worked on a public holiday

Maximum normal hours a week

Maximum normal hours a day

Maximum overtime a day

Maximum overtime a week

Annual leave for the first year of service

Years of service for each extra day of annual leave

Days of service counted as one month for leave

Severance pay for the first year of service

Severance increase for each additional year (share of the first-year amount)

Severance pay cap

Extra pay on closure or reduction of workforce

Compensation when the worker leaves under Article 32(1)

Compensation when the worker leaves under Article 32(1)(b)

Service needed for severance on resignation, sickness or death

Employer notice: service up to one year

Employer notice: more than one and up to nine years

Employer notice: more than nine years

Employer notice: reduction of workforce

Maximum probation period

Sick leave on full pay

Sick leave on half pay

Pay during the half-pay months of sick leave

Sick leave without pay

Paid prenatal leave

Paid postnatal leave

Paid paternity leave

Values that update automatically

Indicative daily exchange rate, birr per US dollar (weighted average)