Hire a remote team in Ethiopia

Hiring a remote team in a country as Ethiopia comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Ethiopia. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

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1. Hire a remote team in Ethiopia with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Ethiopia, particularly if you don't have established local relationships. You can hire employees in Ethiopia effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

Table of contents

Hire a remote team with Rivermate
Introduction
Hiring a remote team in your country
Cost of living
Cost of renting
Major industries
Hiring cost
Employment laws
Top skills
Economic landscape
Market size
Minimum wage

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Ethiopia.As an employer of record, we help you hire employees and run payroll services in Ethiopia, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Ethiopia.It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.If you wish to hire a remote team in Ethiopia or individually hire remote employees in Ethiopia, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.Send us a message so we can talk about how Rivermate’s Employer of Record Ethiopia services can best help your company!

3. Hire a remote team in Ethiopia

Ethiopia is one of the world's oldest nations. Despite being one of Africa's poorest countries, it has one of the fastest-growing economies. Ethiopia is strategically located near the Middle East and its markets, giving it a strategic advantage over its neighbors.Ethiopia's GDP has grown at a stunning 9.4% annual rate during the previous decade. It intends to get out of poverty and into the lower-middle income bracket by 2025. The administration is working hard to maintain economic development while also reducing poverty. The major purpose is to create jobs.The construction and services industries are responsible for the majority of the increase. Ethiopia, like most other nations, was affected by the Covid-19 epidemic, and its GDP fell to 6.1% in 2020. The agriculture sector, on the other hand, remained unaffected and has aided the country's economy in tough times. Companies seeking lower-cost labor are also growing into the Ethiopian market.

4. Cost of living in Ethiopia

Ethiopia's cost of living is $732, which is 1.27 times less costly than the global average. Ethiopia scored 114th out of 197 nations in terms of cost of living and 149th in terms of quality of life.In Ethiopia, the average after-tax earnings is $189, which is enough to meet living costs for 0.3 months.Why does living in Ethiopia cost 3.9 times the average salary? Because we have a reference point of a developed nation lifestyle, and sustaining such a quality of living in certain least developed countries is difficult and costly. As a result, the expenses of living in Ethiopia for natives and foreigners varies dramatically.

5. Cost of renting in Ethiopia

While the average cost of living in Ethiopia is 669 USD/29,000 ETB, it is much higher in Addis Ababa, the capital city and a hub for remote knowledge workers.

6. Major industries in Ethiopia

Agriculture, construction, manufacturing, services, tourism, and food processing are among Ethiopia's key sectors. The majority of the population is self-employed. Employees in the public sector typically earn 14% more than those in the private sector.Ethiopia is ranked 102nd in the world for mobile broadband speeds (average 23 Mbps) and 163rd for fixed broadband speeds (average 13 Mbps). However, digital penetration is greater in big cities than in rural regions. The country's distant knowledge resources are growing because to improved digital infrastructure.

7. Hiring cost in Ethiopia

When it comes to recruiting individuals, the most important aspect is the cost of hiring. Screening, interviewing, onboarding, and training are all elements in the employment process that cost time, skill, and money. Hiring in a foreign nation might be challenging.

8. Employment laws Ethiopia

Ethiopian labor law respects both the rights of employers and workers equally. Property rights, the judiciary, taxes, and the ease of conducting business all have an impact on labor laws. The following are some significant aspects of Ethiopian labor law.- Minimum Wage - There is no national minimum wage for the private sector; it is totally determined by the agreement of the employer and the workers.- Working Hours - The maximum number of working hours in a week is 48. Employers may choose between shorter and longer work hours. However, working hours should not exceed 10 hours every day.- Working overtime is permissible if the employer pays the employee more than their usual compensation. The labor legislation precisely stipulates the proportion of overtime earnings in many scenarios, such as working overtime on a rest day, working overtime at night, or working on a public holiday.- Holidays and Leaves - Employees in Ethiopia are entitled to 16 paid days off per year; employees with more than five years of service are eligible for 18 paid days off per year. There are other 13 public and religious festivals.Recruiting in Ethiopia is a multifaceted job that involves extensive knowledge of the laws, trends, hiring expenses, city-specific living costs, and other factors.

9. Top skills Ethiopia

The most in-demand job skills in Ethiopia include agriculture, construction, manufacturing, services, tourism, and food processing. Most of the population relies on self-employment. Typically people employed in the public sector earn 14% more than private-sector employees.

10. Economic landscape in Ethiopia

The Ethiopian Birr (ETB) is a non-convertible currency, and its allocation to foreign exchange is determined by the National Bank of Ethiopia. At the current exchange rate, 1,000 ETB equals 23 USD. The average monthly wage is roughly 205 USD/8,900 ETB, while the cost of living for one person is approximately 669 USD/29,000 ETB. The current rate of unemployment is 19.10%.