Minimum wage in Ethiopia - Frequently Asked Questions
Is there a separate legislation relating to minimum wages in Ethiopia?
There is no separate legislation for a minimum wage in Ethiopia.
Do one or more minimum wages exist that is/are determined by law?
The minimum wages to be paid for public servants are different depending on the type of service rendered and the level of skill of the laborer.
At what level is minimum wages determined at?
Minimum wages in the public sector are determined at National level depending on the nature of service and level of skill of the worker (employee). Based on the decision of the Council of Ministers, the FDRE Ministry of Civil Service notify the minimum wage together with the different levels of Salary to be paid for all employees for different skill level and types of services.
On what basis is minimum wage calculated?
Minimum wage in calculated on daily, hourly, weekly and monthly basis.
In case of weekly/monthly minimum age, are they based on any fixed number of hours?
As per Proclamation Number 515/2007, Article 32-regular working hours of civil servant shall be determined on the basis of the conditions of their work and shall not exceed 39 hours a week. This applies to all wage earners in the Civil Service. As per Proclamation Number 515/2007, Article 34- any civil servant who has worked overtime is entitled to compensatory leave or overtime pay based on his preference. This applies to all wage earners in the Civil Service. in some organizations some people work more than 39 hours a week.
Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?
The Council of Ministers and the FDRE Civil Service Ministry.
How are upratings (adjustments) of minimum wage/s decided upon?
Since only the Public Sector have minimum wage, it is done by the government considering the fact of having the capacity to pay.
Which are the components of minimum wage in Ethiopia?
How frequently is the fixed component of minimum wage updated?
It is in January 21, 2011 that the current rate is set. There is no any change since then for example.
What is/are the yardstick/s on which minimum wage upratings are based?
What is the national poverty line? (In national currency)
Food poverty line per adult person per year is 1985 Birr; and Total (absolute) poverty line per adult person per year is 3781 Birr. This estimation result is base on the FDRE, MOFED (2012), Ethiopia’s Progress towards Eradicating Poverty: An Interim Report on Poverty Analysis Study (2010/11).
How often is poverty line updated?
It was in 1995/96 that such estimation was made. By then, Food poverty line per adult person per year was 648 Birr; and Total (absolute) poverty line per adult person per year is 1075 Birr, as per the FDRE, MOFED (2012), Ethiopia’s Progress towards Eradicating Poverty: An Interim Report on Poverty Analysis Study (2010/11).
When was poverty line last updated? (Specify YYYY/MM)
March, 2012. (Based on the data collected from 8 July 2010 to 7 July 2011.)
What is the incidence of minimum wages(s) in the national labour force (wage earners only)?
How is minimum wages compliance regulated?
Which legal sanctions can be applied in compliance is lacking?
Are sanctions often being applied?
Are employer and/or trade union representatives involved in compliance procedures?
To whom/Where can individuals complain, if they think they are earning less than minimum wage?
Which month of the year is minimum wage rate revised in Ethiopia?