Employer of Record Ethiopia | INS Global

Employer of Record Ethiopia

Expanding to Ethiopia? EOR (Employer of Record) Services Help You Hire Globally, Pay Locally, and Expand Effortlessly

Are you considering a project or growth in Ethiopia? Employer of Record services from INS Global  provide a hassle-free method for recruiting and managing employees while bypassing the need for a local entity. Efficiently oversee a globally dispersed workforce and enter new markets swiftly with the help of seasoned HR recruitment and payroll professionals. 

Employer of Record Ethiopia - Summary

The Advantages of Using an EOR or Professional Employer Organization in Ethiopia

Legal Compliance Assurance

Choose an Employer of Record (EOR) service well-versed in Ethiopia’s regulatory landscape for effective recruitment and supervision of an international workforce. This proactive approach shields against potential fines by offering support specifically tailored to Ethiopia’s regulations. 

Lower Expansion Costs

Collaborate with an Employer of Record in Ethiopia to accelerate and simplify global growth while also significantly reducing typical expenses associated with expansion. Scale your operations without the need to establish a new entity in Ethiopia, thus saving on overheads. 

Focus on Growing Your Company

An Employer of Record in Ethiopia assumes all HR-related responsibilities on your behalf. This  streamlines your operations and grants you the freedom you need to focus solely on the international goals of your business. 

Expand Effortlessly

Creating a new company in Ethiopia can be time-consuming, ranging from several weeks to as long as 12 months. In contrast, teaming up with a local Employer of Record expedites the expansion process, allowing entry into the Ethiopian market in as little as a week, ensuring a swift and efficient entry point. 

Manage Your HR Online

INS Global provides an efficient means to manage your diverse, global workforce online through a state-of-the-art digital platform. Utilize our advanced proprietary cloud-based HR system to easily oversee all your employees and their needs remotely. 

Why Choose an EOR in Ethiopia Over Company Incorporation?

Opening a new company in a foreign country is often overly complicated. This is especially true if you aren’t familiar with local regulations or employment practices.  

Collaborating with an Ethiopian EOR saves time on growing your business abroad, lowers expansion costs, ensures local compliance, and allows you to focus on growing your business within Ethiopia’s unique context. 

testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

How Does an EOR In Ethiopia Work?

INS Global’s EOR in Ethiopia facilitates your company’s expansion abroad in just four simple steps, specifically tailored to the Ethiopian business environment. 

  1. We collaborate with your business to create a tailored expansion plan that meets your specific needs. 
  2. Our organization provides the legal entity needed to hire local staff or transfer them from abroad, ensuring compliance with Ethiopia’s legal requirements. 
  3. We handle HR-related tasks, such as hiring, contract management, and payroll management, ensuring local compliance in Ethiopia. 
  4. Your employees focus on your goals while we take care of continuous and changing HR and legal compliance needs. 

The Difference Between PEO And Employer of Record Services in Ethiopia?

In Ethiopia, PEO (Professional Employer Organization) services handle various Human Resources tasks, serving as a strategic HR partner. On the other hand, EOR (Employer of Record) in Ethiopia possesses the legal authority to hire and manage employees on your behalf, streamlining the process from start to finish in accordance with Ethiopia’s employment regulations. 

INS Global offers both choices, ensuring that whether you need an EOR or PEO in Ethiopia, you have the support you need to expand comfortably, providing flexibility tailored to Ethiopia’s business environment. 

Labor Law in Ethiopia

Employment Contracts in Ethiopia

  • Professional employment in Ethiopia always starts with an official letter of employment. 
  • In most cases, employers can include a 90-day probation period in their contracts.  
  • An employer can end an employment contract early if the employee violates the conditions of their contract. 
  • Employees are entitled to 1 months’ notice if they have been with the company for a year. This extends to 2 months’ notice for 2 to 9 years of service. 
  • Severance pay is required for employees and is set at 30 days of pay for service up to a year. This increases to 40 days for employees serving over 2 years. Employees being terminated due to workforce reduction are entitled to 2 months’ pay. 

Working Hours in Ethiopia

  • The working week in Ethiopia runs from Monday to Friday. 
  • Full-time employees generally work 8 hours per day, 48 hours per week. 
  • Employees are not allowed to work more than 40 hours per week without receiving overtime pay. 
  • Employees are entitled to a higher hourly rate for overtime. This is 125% of the basic rate which increases to 150% for night shift work. 

Annual Leave in Ethiopia

  • Ethiopia has 14 official national holidays. 
  • Employees are entitled to 16 days of paid annual leave every year.  
  • This increases to 17 days after the 3rd year of service. 

Sick Leave in Ethiopia

  • When an employee is unable to attend work due to illness, they need to get a doctor’s note and present it to HR as soon as possible.  
  • Employees are entitled to up to 6 months of sick leave.  
  • Employees can claim from social security during this time. 

Maternity / Paternity Leave in Ethiopia

  • According to Ethiopian law, female employees are entitled to 120 days of maternity leave. 
  • Maternity leave can be claimed from social security. 
  • Male employees are entitled to 3 days of paternity leave. 

Tax Laws in Ethiopia

  • Employers in Ethiopia are responsible for withholding all taxes and social contributions. 
  • Employers contribute the equivalent of 11% of the employee’s salary, while employees contribute 16% towards social security. 
  • The corporate income tax rate is set at 30% for both local and foreign companies. 
  • Personal income tax ranges from 0% to 35%.  
Employer of Record Ethiopia

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FAQs

While setting up a local entity is an option, collaborating with a local Employer of Record proves more efficient in Ethiopia. Employer of Record services leverage local expertise, facilitating hiring and staff management on your behalf. 

An Employer of Record in Ethiopia manages various HR tasks, including payroll, tax compliance, employment contracts, and social security contributions, ensuring comprehensive compliance for your entire workforce. 

Establishing a new company abroad can take months to a year, but with INS Global’s EOR services, you can hire employees and expand to a new market in as little as a week. 

EOR service costs are directly linked to your employee’s salary, calculated as a percentage and covering all HR functions for compliant employment in Ethiopia. 

Yes, collaborating with an Employer of Record in Ethiopia is a legal and efficient solution, simplifying your expansion plans while reducing costs. 

Salaries are typically processed monthly for full-time employees, while part-time workers may be paid weekly or bi-monthly. 

Recruitment in Ethiopia varies in cost, but INS Global simplifies remote recruitment and staff management, reducing the expenses of managing an international workforce. 

An Ethiopian Employer of Record can recruit and hire employees from all regions, facilitating quick expansion across the country. 

Modifications to employment contracts require mutual agreement. 

Yes, employers in Ethiopia are responsible for withholding taxes and social contributions from employee salaries, including an employer’s contribution to each employee’s social security fund. 

INS Global tailors its services to your company’s needs, assisting with recruiting and hiring as many or as few employees as required for your expansion plans. 

Severance pay is required for employees and is set at 30 days of pay for service up to a year. This increases to 40 days for employees serving over 2 years. Employees being terminated due to workforce reduction are entitled to 2 months pay. 

In Ethiopia, employees can be hired for both in-person and remote opportunities, allowing for reduced overheads during international expansion. 

Certainly! Our local experts bring extensive experience in finding top talent globally by providing support in recruiting, hiring, and managing your workforce, regardless of your location. 

Ethiopia observes 14 public holidays where employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate. 

Employers must adhere to strict labor laws and regulations to avoid costly penalties and fines. Partnering with an experienced EOR in Ethiopia ensures compliance during your expansion. 

Yes! INS Global assists in the recruitment and management of a diverse workforce, simplifying the process of hiring both Ethiopian citizens and foreigners. 

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