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<h1>Social Security Programs Throughout the World: Africa, 2015</h1>
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<h1>Ethiopia</h1>
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<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00 = 20.09 birr.</div>
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<h2>Old Age, Disability, and Survivors</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First and current laws:</span> 1963 (public-sector pensions), 2011 (public-sector pensions), and 2011 (private-sector pensions).</p>
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<p><span class="h4">Type of program:</span> Social insurance system.</p>
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<p>Note: Public- and private-sector pensions are governed by identical regulations but are administered by separate public agencies.</p>
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<h3>Coverage</h3>
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<p><span class="h4">Public-sector pensions:</span> Ethiopians employed in the public sector, government appointees, members of parliament, and military and police personnel.</p>
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<p><span class="h4">Private-sector pensions:</span> Ethiopians employed in the private sector.</p>
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<p>Exclusions: Household workers and employees of international organizations or foreign diplomatic missions.</p>
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<p>Voluntary coverage for self-employed persons and foreign nationals if covered by bilateral or multilateral agreements.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> 7% (public and private sector) of basic salary.</p>
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<p>The insured's contributions also finance work injury benefits.</p>
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<p>The basic salary is the gross monthly salary paid for work performed during regular hours.</p>
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<p><span class="h4">Self-employed person:</span> Voluntary contributions up to 18% of declared income.</p>
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<p><span class="h4">Employer:</span> 11% (public and private sector) or 25% (military) of payroll.</p>
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<p>The employer's contributions also finance work injury benefits.</p>
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<p><span class="h4">Government:</span> None; contributes as an employer.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Old-age pension:</span> Age 60 with at least 10 years of service and contributions. The number of years of service and contributions may be reduced for hazardous or arduous work.</p>
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<p>Early pension: Age 55 with at least 25 years of service and contributions (civilian); age 50 with at least one full term of service (five years) for senior government officials and members of parliament; aged 45 to 55 (depending on rank) with at least 10 years of service and contributions (military).</p>
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<p><span class="h4">Old-age settlement:</span> Age 60 and does not qualify for the <span class="nobr">old-age</span> pension.</p>
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<p><span class="h4">Disability pension:</span> Assessed with an incapacity for normal gainful employment with at least 10 years of service and contributions.</p>
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<p><span class="h4">Disability settlement:</span> Assessed with an incapacity for normal gainful employment with less than 10 years of service and contributions.</p>
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<p><span class="h4">Survivor pension:</span> The deceased received or was entitled to receive an <span class="nobr">old-age</span> pension at the time of death.</p>
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<p>Eligible survivors include the <span class="nobr">widow(er),</span> children younger than age 18 (age 21 if disabled), and dependent parents.</p>
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<p>The <span class="nobr">widow(er)'s</span> pension ceases on remarriage if the widow is younger than age 45 (age 50 for a widower, no limit if disabled).</p>
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<p><span class="h4">Survivor settlement:</span> The deceased had less than 10 years of service and contributions and did not qualify for an <span class="nobr">old-age</span> or disability pension.</p>
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<p>Eligible survivors include the <span class="nobr">widow(er)</span> and children younger than age 18 (age 21 if disabled).</p>
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<h3>Old-Age Benefits</h3>
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<p><span class="h4">Old-age pension:</span> 30% of the insured's average monthly basic salary in the last three years before retirement plus 1.25% (civilian) or 1.65% (military) of the insured's average monthly basic salary for each year of service exceeding 10 years is paid, up to 70%.</p>
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<p>The basic salary is the gross monthly salary paid for work performed during regular hours.</p>
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<p>The minimum monthly pension is 503 birr.</p>
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<p>Early pension: The pension is calculated in the same way as the <span class="nobr">old-age</span> pension.</p>
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<p><span class="h4">Old-age settlement:</span> A lump sum of the insured's basic salary in the month before retirement multiplied by 1.25 (civilian) or 1.65 (military) and by the number of years of service and contributions is paid.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Disability pension:</span> 30% of the insured's average monthly basic salary in the last three years before the disability began plus 1.25% (civilian) or 1.65% (military) of the insured's average monthly basic salary for each year of service exceeding 10 years is paid, up to 70%.</p>
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<p>The basic salary is the gross monthly salary paid for work performed during regular hours.</p>
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<p><span class="h4">Disability settlement:</span> A lump sum of the insured's basic salary in the month before the disability began multiplied by 1.25 (civilian) or 1.65 (military) and by the number of years of service and contributions is paid.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension:</span> 50% of the <span class="nobr">old-age</span> or disability pension the deceased received or was entitled to receive is paid to the <span class="nobr">widow(er).</span></p>
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<p><span class="h4">Orphan's pension:</span> 20% of the <span class="nobr">old-age</span> or disability pension the deceased received or was entitled to receive is paid for each eligible orphan; 30% for full orphans.</p>
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<p><span class="h4">Dependent parent's pension:</span> 15% of the <span class="nobr">old-age</span> or disability pension the deceased received or was entitled to receive is paid to each eligible parent; 20% if there are no other eligible survivors.</p>
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<p><span class="h4">Survivor settlement:</span> A lump sum of the retirement or disability settlement the deceased received or was entitled to receive is paid to eligible survivors (excluding the parents) in the same proportion as the other survivor benefits.</p>
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<p>All survivor benefits combined must not exceed 100% of the <span class="nobr">old-age</span> or disability pension the deceased received or was eligible to receive.</p>
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<h3>Administrative Organization</h3>
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<p>Public Servants' Social Security Agency, managed by a board and a director general, administers the public-sector pension scheme.</p>
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<p>Private Organization Employees' Social Security Agency, managed by a tripartite board, administers the private-sector pension scheme.</p>
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<h2>Sickness and Maternity</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First and current law:</span> 2003 (labor act).</p>
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<p><span class="h4">Type of program:</span> Employer-liability system.</p>
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<h3>Coverage</h3>
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<p>Employed persons in the formal sector.</p>
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<p>Exclusions: Civil servants, including army and police personnel; workers of non-profit organizations; training-related contracts and contracts for treatment, care or rehabilitation activities; household and self-employed workers.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> None.</p>
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<p><span class="h4">Self-employed person:</span> None.</p>
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<p><span class="h4">Employer:</span> The total cost (provides benefits directly to employees).</p>
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<p><span class="h4">Government:</span> None.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Cash sickness benefits:</span> Must be currently employed.</p>
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<p><span class="h4">Cash maternity benefits:</span> Must be currently employed.</p>
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<h3>Sickness and Maternity Benefits</h3>
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<p><span class="h4">Cash maternity benefits:</span> Paid leave is provided for 30 days before and 60 days after the expected date of childbirth; may be extended if there are complications arising from childbirth.</p>
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<p><span class="h4">Cash sickness benefits:</span> 100% of earnings is paid for the first month; 50% of earnings for the next two months; the next three months of leave are unpaid. Leave doesn't have to be continuous. The maximum sick leave period is six months in a year.</p>
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<h3>Workers' Medical Benefits</h3>
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<p>A new health insurance system for public- and private-sector workers was approved by parliament in 2010 (social health insurance proclamation 2010) and is in the process of being implemented.</p>
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<h3>Administrative Organization</h3>
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<p>The Ministry of Labour and Social Affairs (http://www.molsa.gov.et/English/Information/Pages/VissionMVission%20Mission.aspx) provides general supervision.</p>
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<h2>Work Injury</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First law:</span> 1963 (public-sector pensions).</p>
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<p><span class="h4">Current laws:</span> 2003 (labour act), 2007 (civil servants), 2011 (public-sector pensions), and 2011 (private-sector pensions).</p>
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<p><span class="h4">Type of program:</span> Social insurance and employer-liability system.</p>
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<p>Note: Public- and private-sector pensions are governed by identical regulations but are administered by separate public agencies.</p>
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<p>Private insurance may be available for public enterprises and private-sector employees under the 2003 labor proclamation.</p>
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<h3>Coverage</h3>
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<p><span class="h4">Public-sector pensions:</span> Employees in the public sector, senior government officials, members of parliament, military and police personnel.</p>
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<p><span class="h4">Private-sector pensions:</span> Employees in the private sector.</p>
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<p>Exclusions: Household workers and employees of international organizations or foreign diplomatic missions.</p>
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<p>Voluntary coverage for self-employed persons.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person</span></p>
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<p><span class="h5">Social insurance:</span> See source of funds under Old Age, Disability, and Survivors.</p>
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<p><span class="h5">Employer liability:</span> None.</p>
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<p><span class="h4">Self-employed person</span></p>
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<p><span class="h5">Social insurance:</span> Contributions may be paid.</p>
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<p><span class="h5">Employer liability:</span> None.</p>
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<p><span class="h4">Employer</span></p>
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<p><span class="h5">Social insurance:</span> See source of funds under Old Age, Disability, and Survivors.</p>
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<p><span class="h5">Employer liability:</span> The total cost (pays insurance premiums).</p>
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<p><span class="h4">Government</span></p>
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<p><span class="h5">Social insurance:</span> See source of funds under Old Age, Disability, and Survivors.</p>
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<p><span class="h5">Employer liability:</span> The total cost (provides benefits directly to civil servants).</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Work injury benefits:</span> There is no minimum qualifying period.</p>
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<h3>Temporary Disability Benefits</h3>
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<p><span class="h4">Temporary disability benefit (employer liability):</span> For private-sector workers, 100% of the insured's average earnings is paid for three months; 75% for the following three months; and at least 50% for the remaining six months. The benefit is paid for 12 months, until the insured is medically certified as no longer disabled, or medically certified as permanently disabled. For civil servants, 100% of the insured's average earnings is paid until the insured recovers and resumes work or is medically certified as permanently disabled.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Permanent disability pension (social insurance):</span> 47% of the insured's earnings in the month before the accident occurred if the insured has lost at least 10% of work capacity and the capacity to do any remunerated work.</p>
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<p>An authorized medical board assesses the degree of disability.</p>
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<p>If the value of the disability pension is less than or equal to the insured's entitlement to the <span class="nobr">old-age</span> pension, the <span class="nobr">old-age</span> pension is paid, up to 70% of the insured's monthly basic salary.</p>
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<p><span class="h4">Partial disability benefit (social insurance):</span> A lump sum of 47% of the insured's earnings in the month before the accident occurred multiplied by 60 months and by the assessed degree of disability is paid if the insured has lost at least 10% of work capacity but not the capacity to work.</p>
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<p>An authorized medical board assesses the degree of disability.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension (social insurance):</span> 50% of the disability pension the deceased received or was entitled to receive is paid to the <span class="nobr">widow(er).</span></p>
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<p>The <span class="nobr">widow(er)'s</span> pension ceases on remarriage if the widow is younger than age 45 (age 50 for a widower, no limit if disabled).</p>
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<p>Orphan's pension (social insurance): 20% of the disability pension the deceased received or was entitled to receive is paid for each eligible orphan; 30% for full orphans.</p>
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<p><span class="h4">Dependent parent's pension (social insurance):</span> 15% of the disability pension the deceased received or was entitled to receive is paid to each eligible parent; 20% if there are no other eligible survivors.</p>
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<p><span class="h4">Survivor settlement (social insurance):</span> A lump sum of the partial disability settlement the deceased received or was entitled to receive is paid to eligible survivors (excluding the parents) in the same proportion as the other survivor benefits.</p>
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<p>All survivor benefits combined must not exceed 100% of the disability pension the deceased received or was entitled to receive.</p>
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<h3>Administrative Organization</h3>
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<p>Public Servants' Social Security Agency, managed by a board and a director general, administers the public-sector pension scheme.</p>
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<p>Private Organization Employees' Social Security Agency, managed by a tripartite board, administers the private-sector pension scheme.</p>
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<h2>Unemployment</h2>
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<h3>Regulatory Framework</h3>
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<p>Under the 2003 labor proclamation, employers must provide severance pay in case of: unfair dismissal; workforce restructuring; the employer's death, insolvency, or bankruptcy; the employee's death at work; physical incapacity; or <abbr class="spell">HIV</abbr>/<abbr>AIDS</abbr> diagnosis. Severance pay is 30 times the employee's average daily wage during the last week of employment for the first year of service plus 10 times for each additional year of service, up to the employee's annual salary. An additional amount is paid for bankruptcy and workforce restructuring.</p>
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