Social Security Programs Throughout the World: Africa, 2003

 

Ethiopia

Exchange rate: U.S.$1.00 equals 8.58 birr.

Old Age, Disability, and Survivors

Regulatory Framework

First and current laws: 1963 (public employees) and 1975 (employees of government-owned enterprises).

Type of program: Social insurance system.

Coverage

Public-sector employees and employees of government-owned enterprises.

Source of Funds

Insured person: 4% of basic salary.

Employer: 6% (civilian) or 16% (military) of payroll.

Government: None.

Qualifying Conditions

Old-age pension: Age 55 with a minimum of 10 years of service and contributions.

Old-age settlement: Age 55 for those who do not meet the qualifying conditions for the old-age pension.

Disability pension: Incapable of normal gainful employment with a minimum of 10 years of service and contributions.

Survivor pension: The insured met the contribution conditions for the old-age pension or was a pensioner at the time of death.

Old-Age Benefits

Old-age pension: 30% of the average monthly salary during the last 3 years, plus an increment of 1% (civilian) or 1.5% (military) of the average monthly salary for each year of service beyond 10.

The maximum benefit is 60% of the average monthly salary.

Old-age settlement: A lump-sum payment.

Permanent Disability Benefits

Disability pension: 30% of the average monthly salary during the last 3 years, plus an increment of 1% (civilian) or 1.5% (military) of the average monthly salary for each year of service beyond 10.

The maximum benefit is 60% of the average monthly salary.

Survivor Benefits

Survivor pension: The widow(er) receives 50% of the insured's pension. Entitlement to the pension ceases on remarriage. On remarriage, a lump sum of 2 years' pension is paid.

Orphan's pension: 10% of the insured's pension each; 20% each for full orphans.

Dependent parents: 10% to 20% of the insured's pension.

Administrative Organization

Office of the Prime Minister provides general supervision.

Managed by a board and general manager, the Social Security Authority administers the program.

Sickness and Maternity

Regulatory Framework

The labor proclamation and public service amendment require the provision of sickness and maternity leave for up to 3 months.

Work Injury

Regulatory Framework

First law: 1963.

Current law: 1974.

Type of program: Social insurance system.

The labor proclamation allows for the provision of private insurance.

Coverage

Public-sector employees and employees of government-owned enterprises.

Source of Funds

Insured person: 4% of basic salary.

Employer: 6% (civilian) or 16% (military) of payroll.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

A lump sum equal to 45% of the monthly salary multiplied by 5 years and the assessed percentage degree of disability.

Permanent Disability Benefits

From 45% to 60% of the monthly basic salary.

Survivor Benefits

Survivor pension: The widow(er) receives 50% of the insured's pension. Entitlement to the pension ceases on remarriage. On remarriage, a lump sum of 2 years' pension is paid.

Administrative Organization

Office of the Prime Minister provides general supervision.

Managed by a board and general manager, the Social Security Authority administers the program.