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<h1>Social Security Programs Throughout the World: Africa, 2007</h1>
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<h1>Ethiopia</h1>
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<div class="exchangeRate">Exchange rate: US$1.00 equals 8.78 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 law:</span> 1963 (public employees), with 1974, 1975, 1996, 1999, 2003, 2004, and 2006 amendments.</p>
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<p><span class="h4">Type of program:</span> Social insurance system.</p>
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<h3>Coverage</h3>
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<p>Public-sector employees only, including military and police personnel and employees of government-owned enterprises.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> 4% of basic salary.</p>
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<p>The insured's contributions also finance work injury benefits.</p>
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<p><span class="h4">Self-employed person:</span> Not applicable.</p>
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<p><span class="h4">Employer:</span> 6% (civilian) or 16% (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, except 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.</p>
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<p>Early pension: Age 55 with at least 25 years of contributions (civilian personnel); aged 45 to 55 (depending on rank) with at least 10 years of contributions (military personnel).</p>
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<p><span class="h4">Old-age settlement:</span> Age 60 and does not meet the qualifying conditions for the old-age pension.</p>
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<p><span class="h4">Disability pension:</span> The insured must be assessed as incapable of normal gainful employment and have at least 10 years of service and contributions.</p>
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<p><span class="h4">Disability settlement:</span> The insured must be assessed as incapable of normal gainful employment and have less than 10 years of service and contributions.</p>
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<p><span class="h4">Survivor pension:</span> The deceased met the contribution conditions for the old-age pension or was a pensioner at the time of death.</p>
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<p>Eligible survivors are the <span class="nobr">widow(er)</span>, children younger than age 18, and dependent parents.</p>
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<p><span class="h4">Survivor settlement:</span> Paid to eligible survivors if the deceased had less than 10 years of service and contributions and was not eligible for a pension.</p>
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<p>Eligible survivors are the <span class="nobr">widow(er)</span> and children younger than age 18.</p>
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<h3>Old-Age Benefits</h3>
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<p><span class="h4">Old-age pension:</span> The pension is equal to 30% of the insured's average monthly basic salary in the last 3 years before retirement, plus 1.125% (civilian) or 1.5% (military) of the insured's average monthly basic salary for each year of service exceeding 10 years.</p>
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<p>The minimum monthly pension is 100 birr.</p>
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<p>The maximum monthly pension is equal to 70% of the insured's average monthly basic salary.</p>
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<p>Early pension: The pension is calculated in the same way as the old-age pension.</p>
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<p>Benefit adjustment: Benefits may be adjusted by the Council of Ministers every 5 years.</p>
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<p><span class="h4">Old-age settlement:</span> A lump sum is paid equal to the insured's basic salary in the month before retirement times the number of years of service.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Disability pension:</span> The pension is equal to 30% of the insured's average monthly basic salary in the last 3 years before the disability began, plus 1.125% (civilian) or 1.5% (military) of the insured's average monthly basic salary for each year of service exceeding 10 years.</p>
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<p>The maximum monthly pension is equal to 70% of the insured's average monthly basic salary.</p>
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<p>Benefit adjustment: Benefits may be adjusted by the Council of Ministers every 5 years.</p>
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<p><span class="h4">Disability settlement:</span> A lump sum is paid equal to the insured's basic salary in the month before the disability began times the number of years of service.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension:</span> 50% of the deceased's monthly pension is paid to the <span class="nobr">widow(er)</span>.</p>
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<p>The pension ceases on remarriage.</p>
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<p><span class="h4">Orphan's pension:</span> Each eligible orphan receives 20% of the deceased's pension; 30% for full orphans.</p>
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<p><span class="h4">Dependent parent's pension:</span> Each eligible parent receives 15% of the deceased's pension; 20% in the absence of other eligible survivors.</p>
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<p><span class="h4">Survivor settlement:</span> A lump sum is paid to each eligible survivor. The lump sum is calculated using the percentage rates used to calculate the survivor pension or orphan's pension.</p>
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<p>Benefit adjustment: Benefits may be adjusted by the Council of Ministers every 5 years.</p>
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<h3>Administrative Organization</h3>
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<p>Accountable to the prime minister and managed by a board and a director general, the Social Security Agency administers the program.</p>
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<h2>Sickness and Maternity</h2>
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<h3>Regulatory Framework</h3>
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<p>No statutory benefits are provided.</p>
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<p>The public service amendment proclamation (2002) and the labor proclamation (2003) require employers to provide paid sick leave for up to 3 months: 100% of earnings is paid for the first month; thereafter, 50% of earnings.</p>
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<p>The public service amendment proclamation (2002) and the labor proclamation (2003) require employers to provide paid maternity leave for up to 45 days after childbirth; thereafter, paid sick leave may be paid in the event of complications arising from childbirth.</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 and current law:</span> 1963 (public employees), with 2003 amendment.</p>
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<p><span class="h4">Type of program:</span> Social insurance system.</p>
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<p>The labor proclamation (2003) allows for the provision of private insurance for public-sector employees.</p>
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<h3>Coverage</h3>
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<p>Public-sector employees only, including military and police personnel and employees of government-owned enterprises.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> See source of funds under Old Age, Disability, and Survivors, above.</p>
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<p><span class="h4">Self-employed person:</span> Not applicable.</p>
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<p><span class="h4">Employer:</span> See source of funds under Old Age, Disability, and Survivors, above.</p>
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<p><span class="h4">Government:</span> See source of funds under Old Age, Disability, and Survivors, above.</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>A lump sum is paid equal to 45% of the insured's monthly basic salary multiplied by 5 years times the assessed degree of disability.</p>
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<p>Benefit adjustment: Benefits may be adjusted by the Council of Ministers every 5 years.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Permanent disability pension:</span> The pension varies from 45% to 70% of the insured's monthly basic salary, according to the assessed 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 under the old-age pension, then the old-age pension is paid up to a maximum of 70% of the insured's monthly basic salary.</p>
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<p>Benefit adjustment: Benefits may be adjusted by the Council of Ministers every 5 years.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension:</span> 50% of the deceased's pension is paid to the <span class="nobr">widow(er)</span>.</p>
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<p>The pension ceases on remarriage.</p>
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<p><span class="h4">Orphan's pension:</span> Each eligible orphan receives 20% of the deceased's pension; 30% for full orphans.</p>
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<p><span class="h4">Dependent parent's pension:</span> Each eligible parent receives 15% of the deceased's pension; 20% in the absence of other eligible survivors.</p>
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<p>Benefit adjustment: Benefits may be adjusted by the Council of Ministers every 5 years.</p>
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<h3>Administrative Organization</h3>
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<p>Accountable to the prime minister and managed by a board and a director general, the Social Security Agency administers the program.</p>
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