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<h1>Social Security Programs Throughout the World: Africa, 2017</h1>
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<h1>Ethiopia</h1>
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<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00 = 22.4 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> Citizens of Ethiopia 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> Citizens of Ethiopia employed in the private sector.</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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<p>Exclusions: Household workers, seasonal workers, and employees of international organizations or foreign diplomatic missions.</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 basic salary is the gross monthly salary paid for work performed during regular hours.</p>
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<p>The insured person's contributions also finance work injury benefits.</p>
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<p><span class="h4">Self-employed person:</span> 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 and police) 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 and police).</p>
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<p>Employment must cease.</p>
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<p><span class="h4">Old-age settlement:</span> Age 60 with less than 10 years of service and contributions.</p>
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<p>Employment must cease.</p>
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<p><span class="h4">Disability pension:</span> Must be assessed with an incapacity for 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> Must be assessed with an incapacity for 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 received or was entitled to receive an <span class="nobr">old-age</span> or disability pension at the time of death.</p>
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<p>Eligible survivors include a <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 upon 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 a <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 three years before retirement plus 1.25% (civilian) or 1.65% (military and police) 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 salary paid for work performed during regular hours.</p>
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<p>The minimum monthly pension is 744 birr (January 9. 2017).</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 police) and by the number of years of service and contributions is paid.</p>
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<p>The basic salary is the gross salary paid for work performed during regular hours.</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 three years before the disability began plus 1.25% (civilian) or 1.65% (military and police) 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 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 police) and by the number of years of service and contributions is paid.</p>
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<p>The basic salary is the gross salary paid for work performed during regular hours.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension</span></p>
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<p><span class="h5">Spouse's 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="h5">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 to each eligible orphan; 30% for each full orphan.</p>
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<p><span class="h5">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>The maximum combined survivor benefit is 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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<p><span class="h4">Survivor settlement:</span> A lump sum of 50% of the <span class="nobr">old-age</span> or disability settlement the deceased received or was entitled to receive is paid to the <span class="nobr">widow(er)</span>; 20% to each eligible orphan (30% for each full orphan).</p>
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<p>The maximum combined survivor benefit is 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 (http://www.poessa.gov.et/), managed by a board and a director general, administers the public-sector program.</p>
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<p>Private Organization Employees' Social Security Agency (http://www.poessa.gov.et/), managed by a tripartite board, administers the private-sector program.</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 laws:</span> 2003 (labor act) and 2007 (civil servants).</p>
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<p><span class="h4">Type of program:</span> Employer-liability system. Cash sickness and maternity benefits only.</p>
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<h3>Coverage</h3>
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<p>Employed persons in the formal sector, including private-sector employees and civil servants.</p>
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<p>Exclusions: Employees of non-profit organizations; workers with training-related contracts and contracts for treatment, care or rehabilitation activities; household workers and self-employed persons.</p>
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<p>Special systems for military and police personnel.</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; contributes as an employer.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Cash sickness benefits:</span> There is no minimum qualifying period. The maximum sick leave period is six months in a year.</p>
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<p><span class="h4">Cash maternity benefits:</span> There is no minimum qualifying period.</p>
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<h3>Sickness and Maternity Benefits</h3>
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<p><span class="h4">Sickness benefit:</span> 100% of the employee's earnings is paid for the first month; 50% of earnings for the next two months; the next three months of leave are unpaid.</p>
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<p><span class="h4">Maternity benefit:</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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<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 and is in the process of being implemented.</p>
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<h3>Administrative Organization</h3>
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<p>Ministry of Labour and Social Affairs (http://www.molsa.gov.et/) 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 (labor 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.</p>
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<h3>Coverage</h3>
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<p><span class="h4">Social insurance</span></p>
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<p><span class="h5">Public-sector pensions:</span> Citizens of Ethiopia employed in the public sector, senior government officials, members of parliament, and military and police personnel.</p>
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<p><span class="h5">Private-sector pensions:</span> Citizens of Ethiopia employed in the private sector.</p>
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<p>Exclusions: Household workers, seasonal 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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<p><span class="h4">Employer liability</span></p>
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<p>Employed persons in the formal sector, including private- sector employees and civil servants.</p>
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<p>Exclusions: Employees of non-profit organizations; workers with training-related contracts and contracts for treatment, care or rehabilitation activities; household workers and self-employed persons.</p>
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<p>Special systems for military and police personnel.</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> See source of funds under Old Age, Disability, and Survivors.</p>
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<p><span class="h5">Employer liability:</span> Not applicable.</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> None; the total cost as an employer (provides benefits directly to civil servants).</p>
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<h3>Qualifying Conditions</h3>
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<p>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 employee'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 or until full recovery or certification of permanent disability. For civil servants, 100% of the employee's average earnings is paid until the employee 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 monthly basic salary in the month before the disability began is paid if the insured has at least a 10% loss of work capacity and is unable to work.</p>
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<p>An authorized medical board assesses the degree of disability.</p>
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<p>If the disability pension is less than or equal to the <span class="nobr">old-age</span> pension the insured is entitled to receive, 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>The basic salary is the gross salary paid for work performed during regular hours.</p>
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<p><span class="h4">Partial disability benefit (social insurance):</span> A lump sum of 47% of the insured's basic salary in the month before the disability began multiplied by 60 months and by the assessed degree of disability is paid if the insured has at least a 10% loss of work capacity but is able to work.</p>
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<p>An authorized medical board assesses the degree of disability.</p>
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<h3>Workers' Medical Benefits</h3>
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<p><span class="h4">Social insurance:</span> No statutory benefits are paid.</p>
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<p><span class="h4">Employer liability:</span> Benefits include general and specialized medical and surgical care, hospitalization, pharmaceutics, and prosthetic or orthopaedic appliances.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension (social insurance)</span></p>
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<p><span class="h5">Spouse's pension:</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 upon 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="h5">Orphan's pension (social insurance):</span> 20% of the disability pension the deceased received or was entitled to receive is paid for each eligible orphan; 30% for each full orphan.</p>
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<p><span class="h5">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>The maximum combined survivor benefit is 100% of the disability pension the deceased received or was entitled to receive.</p>
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<p><span class="h4">Survivor settlement (social insurance):</span> A lump sum 50% of the partial disability settlement the deceased was entitled to receive is paid to the <span class="nobr">widow(er)</span>; 20% to each eligible orphan (30% for each full orphan).</p>
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<p>The maximum combined survivor benefit is 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 (http://www.psssa.gov.et/), managed by a board and a director general, administers the public-sector program.</p>
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<p>Private Organization Employees' Social Security Agency (http://www.poessa.gov.et/), managed by a tripartite board, administers the private-sector program.</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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