Ethiopia Payroll Services

At Bradford Jacobs, we navigate the administration of the Ethiopian payroll system for you. We do the work, so you do not have to.

Ethiopian Payroll

The Democratic Republic of Ethiopia is the second largest economy in East Africa and the seventh strongest on the continent as a whole. Ethiopia is in transition as it develops the manufacturing and industrial sector to build on its traditional strengths in agriculture, with increased emphasis on privatisation and liberalising the finance sector.

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Ethiopia and its East African neighbours Kenya and Tanzania are all in Africa’s top 10 economies for Gross Domestic Product, which is an added appeal for Foreign Direct Investment into the region. These are major attractions for foreign companies planning to hire staff in Ethiopia and operate their payroll. But care is needed, running a payroll system is one of the many major commitments companies face as they build their global profile.

Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms and networks provide complete answers to every question your company will encounter before you move into the economy, especially when it comes to operating payroll.

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Available Ethiopian Payroll Options

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Ethiopia to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Ethiopia. However, this does require hiring dedicated HR staff who understand Ethiopian employment and compliance laws.
  • Ethiopias’ payroll processing company – If you are considering outsourcing, then working with a Ethiopian payroll company will help in processing your payroll – but not when it comes to compliance.
  • Ethiopias’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Ethiopia. We take the administrative stress off your shoulders so you can focus on what you do best.

Foreign companies expanding their operations into Ethiopia generally establish a subsidiary to be able to hire staff and operate payroll for the company. The usual choice is to establish a limited liability company, which operates under the Companies Code, as revised in 2021. Once established, procedures for onboarding employees in Ethiopia generally include the following:

  • Verify the employees Tax Identification Number with the Ethiopian Customs and Revenue Authority (ECRA)
  • Register the employee with the ECRA
  • Register employee with the Private Organisation Employees’ Pension Fund (POEPF). In the public sector, registration is with the Public Social Security Services Fund (PSSSF)
  • Public sector workers are registered for social services through the e-services government portal

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