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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.Â
 Want to have a Team in EthiopiaTODAY?
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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. Â
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.Â
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
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.Â
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.Â
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.Â
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.Â
Manage Your HR Online
INS Global provides an efficient means to manage your diverse, international 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.Â
INS Global’s EOR in Ethiopia facilitates your company’s expansion abroad in just four simple steps, specifically tailored to the Ethiopian business environment.Â
1
We collaborate with your business to create a tailored expansion plan that meets your specific needs.Â
2
Our organization provides the legal entity needed to hire local staff or transfer them from abroad, ensuring compliance with Ethiopia’s legal requirements.Â
3
We handle HR-related tasks, such as hiring, contract management, and payroll management, ensuring local compliance in Ethiopia.Â
4
Your employees focus on your goals while we take care of continuous and changing HR and legal compliance needs.Â
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.Â
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.Â
Ethiopia’s rapidly developing economy offers hiring opportunities in multiple industries, particularly for foreign companies seeking long-term growth in East Africa. High-potential sectors include:
Agribusiness and Agro-processing: Ethiopia’s fertile land and large agricultural sector make it ideal for foreign investment.
Textiles and Garments: As a hub for cost-effective manufacturing, Ethiopia is attracting global apparel brands.
Renewable Energy and Infrastructure: Major dam, solar, and wind projects are ongoing across the country.
Digital Services and Fintech: As connectivity expands, mobile banking and SaaS solutions are in increasing demand.
Healthcare and Pharmaceuticals: The government is pushing for better access to medical infrastructure and local production.
An Employer of Record in Ethiopia enables companies in these sectors to build teams quickly, legally, and cost-effectively
Navigating Ethiopia’s unique labor landscape requires cultural awareness and legal sensitivity. For instance:
Hiring is relationship-driven: Referrals and networks play a significant role in recruitment.
Termination is tightly regulated: Employers must provide documented justification and adhere to strict notice and severance rules.
Probation periods are common: But they must be explicitly stated and cannot exceed 90 days.
A local EOR ensures that your company remains aligned with both legal requirements and culturally appropriate employment practices.
Check Our Labor Law Guides
Working Hours
Holidays and Annual Leave
Sick Leave
Employees are eligible for up to 10 days paid sick/ carer’s leave, plus 2 days of compassionate/ bereavement leave. Â Â
Employers are also expected to allow for volunteer or emergency leave when necessary. However, this is typically unpaid (except in the case of jury duty).Â
Parental Leave
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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.Â
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.Â
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.Â
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.Â
Yes, collaborating with an Employer of Record in Ethiopia is a legal and efficient solution, simplifying your expansion plans while reducing costs.Â
Salaries are typically processed monthly for full-time employees, while part-time workers may be paid weekly or bi-monthly.Â
Recruitment in Ethiopia varies in cost, but INS Global simplifies remote recruitment and staff management, reducing the expenses of managing an international workforce.Â
An Ethiopian Employer of Record can recruit and hire employees from all regions, facilitating quick expansion across the country.Â
Modifications to employment contracts require mutual agreement.Â
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.Â
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.Â
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.Â
In Ethiopia, employees can be hired for both in-person and remote opportunities, allowing for reduced overheads during international expansion.Â
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.Â
Ethiopia observes 14 public holidays where employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate.Â
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.Â
Yes! INS Global assists in the recruitment and management of a diverse workforce, simplifying the process of hiring both Ethiopian citizens and foreigners.Â
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.
Level 39, Marina Bay Financial Centre Tower 2, 10 Marina Boulevard
Singapore 018983ÂPublic Holidays Calendar
Ethiopia
| Date | Day | Holiday | Notes |
| January 7 | Tuesday | Ethiopian Christmas Day (Genna) | Celebration of the birth of Jesus Christ in the Ethiopian Orthodox tradition. |
| January 19 | Sunday | Epiphany / Timkat | Commemoration of the baptism of Jesus Christ in the Jordan River. |
| March 2 | Sunday | Adwa Victory Day | Commemorates Ethiopia’s victory over Italy at the Battle of Adwa in 1896. |
| March 31 | Monday | Eid al-Fitr | Marks the end of Ramadan, the Islamic holy month of fasting. |
| April 18 | Friday | Ethiopian Good Friday (Siklet) | Observance of the crucifixion of Jesus Christ in the Ethiopian Orthodox tradition. |
| April 20 | Sunday | Ethiopian Easter (Fasika) | Celebration of the resurrection of Jesus Christ in the Ethiopian Orthodox tradition. |
| May 1 | Thursday | International Labor Day | Global celebration of laborers and the working class. |
| May 5 | Monday | Patriots’ Victory Day | Commemorates the victory of Ethiopian resistance against Italian occupation and the return of Emperor Haile Selassie in 1941. |
| May 28 | Wednesday | Derg Downfall Day | Marks the fall of the Derg regime in 1991, leading to the establishment of the Federal Democratic Republic of Ethiopia. |
| June 6 | Friday | Eid al-Adha | Islamic festival honoring the willingness of Ibrahim to sacrifice his son. |
| September 5 | Friday | Birth of Prophet Muhammad (Mawlid) | Celebration of the birth of the Islamic prophet Muhammad. |
| September 11 | Thursday | Ethiopian New Year (Enkutatash) | Marks the beginning of the new year in the Ethiopian calendar. |
| September 27 | Saturday | Meskel | Commemorates the discovery of the True Cross by Saint Helena in the fourth century. |
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