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From
$249/month
$49/month
2% of gross salary / month
Horizons provides global employment solutions allowing any business to easily hire employees in Ethiopia — in full compliance with local laws and regulations. The Horizons Ethiopia EOR solution means you can do hire employees in Ethiopia without the need to set up a local subsidiary or entity.
This saves businesses time and money, and reduces or eliminates the risk of non-compliance.
Note, a Ethiopia Employer of Record is also known as a Ethiopia Professional Employer Organization (PEO).
Hire in Ethiopia, and pay employees through our platform or app.
Our Ethiopia EOR solution is the most affordable on the market.
Fast Ethiopia onboarding, hire in as little as 24 hours.
We draft compliant Ethiopia labor contracts.
We manage all Ethiopia “Five Insurances” mandatory benefits.
It doesn’t stop with Ethiopia — we hire employees globally.
While it is technically possible to enter into a verbal contract in Algeria, we strongly recommend producing a formal written employment contract when hiring your workforce. The local language of Arabic should be used, and any references to money should be in the Algerian dinar. The contracts should include any relevant details of the employment agreement, such as compensation, vacation allowance, and more.
By partnering with our Algeria EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
There are several benefits of using an EOR in Ethiopia. One benefit is the cost savings that an EOR can provide: By outsourcing HR tasks to an EOR, a client company can avoid the expenses associated with hiring and training in-house HR staff.
In addition, an EOR can often negotiate better rates for benefits such as health insurance and retirement plans, which can save the client company money.
Another benefit of using an EOR is the expertise and resources that it can offer. An EOR typically has a team of HR professionals who are knowledgeable about employment laws and regulations in Ethiopia. This can help the client company to stay compliant and avoid costly legal issues. An EOR also has access to a range of HR tools and technologies that can help the client to more effectively manage its workforce.
Using an EOR can also help a client company to be more agile and flexible. By outsourcing HR tasks to an EOR, the client can focus on its core business activities and be better positioned to respond to changing market conditions.
In Ethiopia, an EOR can assist client companies with the hiring process in a variety of ways. One way is by handling the administrative tasks associated with hiring, such as posting job advertisements, reviewing resumes, and scheduling interviews. An EOR can also help a client company to create job descriptions and offer letters, and to conduct background checks and reference checks on potential hires.
In addition, an EOR can provide guidance to a client company on employment laws and regulations in Ethiopia, including those related to hiring. This can help the client company to ensure that it is complying with all relevant laws and to avoid potential legal issues.
Finally, an EOR can provide training and support to a client company on effective hiring practices, such as how to conduct interviews and assess candidates. This can help the client company to make informed hiring decisions and to build a strong and productive workforce.
Specifically, an Ethiopia EOR can help ensure compliance with the following legal requirements:
An Ethiopia EOR can help you manage benefits in Ethiopia by managing all benefits for your Ethiopia staff. This includes leave management, healthcare, and pensions.When it comes to annual leave/vacation leave, employees in Ethiopia received 16 days paid annual leave. In addition to an are several mandatory public holidays in Ethiopia. Some of the most notable ones include:
Ethiopia has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
| Date | Holiday name |
|---|---|
| 7 Jan 2025 | Ethiopian Christmas Day |
| 19 Jan 2025 | Epiphany / Timkat |
| 2 Mar 2025 | Adwa Victory Day |
| 31 Mar, 2025 | Eid al-Fitr (tentative) |
| 18 Apr 2025 | Ethiopian Good Friday |
| 20 Apr 2025 | Fasika |
| 1 May 2025 | International Labor Day |
| 5 May 2025 | Patriots’ Victory Day |
| 28 May 2025 | Derg Downfall Day |
| 7 Jun 2025 | Eid al-Adha (Tentative Date) |
| 5 Sep 2025 | The Prophet’s Birthday (Tentative Date) |
| 11 Sep 2025 | Enkutatash (Ethiopian New Year) |
| 27 Sep 2025 | Meskel |
In addition to these holidays, there are also several other holidays that are observed by certain groups or in certain regions of Ethiopia. For example, some areas observe the Islamic holiday of Eid al-Fitr, while others observe the Orthodox Christian holiday of Timkat.
It is important to note that while these holidays are mandatory, the actual dates on which they are observed may vary depending on the lunar calendar used in Ethiopia.
Under the Private Organization Employees’ Pension Proclamation (Proclamation No. 1268/2022) employers in Ethiopia are required to make contributions on behalf of their employees into a nationally-administered pension scheme.
Currently, employers are required to contribute 11 percent of an employee’s basic salary, while the employee must contribute 7 percent.
Evidence of compliant payment of these contributions is essential for a business in Ethiopia to maintain and have its business licences renewed.
In Ethiopia, employers are not required to provide health insurance for their employees. However, the Ethiopian Health Insurance Agency (EHIA) oversees two public insurance schemes:
While the government in Ethiopia aims for universal coverage through these schemes, this has yet to be implemented.
Ethiopia Employer of Record (EOR) solutions take the stress out of hiring employees in Ethiopia. By using an EOR, any company, anywhere in the world can hire quickly, cost-effectively and in full compliance with Ethiopia labor laws and regulations.
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Generally speaking, the terms “Ethiopia PEO” and “Ethiopia EOR” are used interchangeably.
The easiest way for international companies to hire in Ethiopia is through an Ethiopia EOR. This ensures that employees are onboarded quickly, cost-effectively and in full compliance with Ethiopia’s labor laws.
Holiday Schedule in Ethiopia [2025]
