Social Security

Pension Rights

Law provides for both full and early pension. For full pension, a worker must have attained 60 years of age (same for women) with at least 120 months (10 years) of contributions. Early pension is available for workers who have attained 55 years of age with at least 300 months (25 years) of contributions and 45 to 55 years of age (depending on rank), in military, with at least 10 years of service and contribution.

The old-age pension is 30% of a worker's average monthly earnings in the last three years before retirement plus 1.25% (civilian) or 1.65% (military) of the insured worker's average monthly for each year of service exceeding 10 years. The minimum monthly pension is 744 birr (January 2017) and maximum monthly pension is 70% of the insured worker's average monthly basic salary. Early pension is calculated in same manner as the old-age pension.

If a worker does not meet the qualifying conditions for the old-age pension at 60 years of age, 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 the number of years of service and contributions are paid.

Source: §18-21 of the Private Organization Employees Pension Proclamation No. 715/2011; ISSA Country Profile 2017

Dependents' / Survivors' Benefit

The above laws provide for survivor benefit for dependents including widow, widower, children younger than 18 years of age (age 21 if disabled) and parents (if there are no surviving spouse or children).

Survivors' benefit of 50% of the deceased's pension is paid to a widow/widower. 20% of the deceased worker's pension is paid to each orphan. 30% of the deceased worker's pension is paid to each full orphan. 15% (20%, if no other survivors are alive) of deceased worker's pension is paid to each eligible parent. The widow(er)'s pension ceases on remarriage if the widow is younger than age 45 (age 50 for a widower, no limit if disabled). All survivor benefits combined must not exceed 100% of the deceased monthly olg-age or disability pension.

If the deceased have less than 10 years of service and contributions and is not eligible for a pension, survivor settlement is paid as a lump sum to the eligible survivors in the same proportion as the other survivor benefits.

Source: §39-44 of the  Private Organization Employees Pension Proclamation No. 715/2011; ISSA Country Profile 2017

Invalidity Benefit

The above laws provide for invalidity benefit in the case of non-occupational accident/injury/disease resulting into permanent invalidity. Worker must be assessed with incapacity to perform work and have at least 10 years of contributions.

Invalidity benefit is calculated similarly as old-age pension. The invalidity pension is 30% of a worker's average monthly earnings in the last three years before start of disability plus 1.25% (civilian) and 1.65% (military) of the insured worker's average monthly for each year of service exceeding 10 years. The maximum monthly pension is 70% of the insured worker's average monthly basic salary.

Disability settlement is paid to the worker with less than 10 years of contribution as 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 the number of years of service and contributions is paid.

Source: §22-26 of the Private Organization Employees Pension Proclamation No. 715/2011; ISSA Country Profile 2017

Regulations on Social Security

  • Social Health Insurance Proclamation No.690/2010 / የማህበራዊ ጤና ዋስትና አዋጅ ቁጥ 690/2010
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