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Ethiopia Salary Calculator (Income Tax & Pension)
Work out your take-home pay after employment income tax and the 7% pension contribution, monthly or yearly. Free, no sign-up, and nothing you type is stored on our servers.
How to Work Out Your Net Salary
Enter Your Salary
Type your gross basic salary in birr from your contract or payslip, before any deductions.
Add Your Allowances
Pick monthly or yearly, add taxable allowances and any transport allowance, and choose whether you pay pension.
See Your Take-Home
Get your net pay, tax by band and employer pension cost, then download a payslip.
Frequently Asked Questions
What are the employment income tax rates in Ethiopia?
Income Tax (Amendment) Proclamation No. 1395/2025 sets these monthly rates for income earned from 8 July 2025: Br 0–2,000 at 0%, Br 2,001–4,000 at 15%, Br 4,001–7,000 at 20%, Br 7,001–10,000 at 25%, Br 10,001–14,000 at 30%, and 35% on income above Br 14,000. Each rate applies only to the part of your salary inside that band.
How much pension is deducted from my salary?
Employees of private organisations pay 7% of their monthly salary and the employer adds 11% (Proclamation No. 1268/2022). Civil servants pay the same 7% and 11% under Proclamation No. 1267/2022. Pension is charged on the salary for regular working hours, so allowances and overtime are not included, and the law sets no upper limit.
Is pension deducted before income tax?
No. Ethiopian law allows no deductions against employment income, so tax is worked out on your full taxable salary and the 7% pension is then taken off separately. Payroll practice can differ in rare cases, so check your payslip if your figures do not match.
Are allowances taxed?
Most cash allowances are added to your taxable income. The Ministry of Revenues says a transport allowance is tax-free up to a quarter of your monthly salary and never more than Br 2,200; any amount above that is taxed. This calculator applies that limit using your basic salary. Per diem, overtime and benefits in kind are not included.
Is this an official Ministry of Revenues calculator?
No. This is an estimate, not official tax advice. It uses the published proclamations, but your employer’s payroll, regional rules, overtime and exemptions can change the figure, so always check your payslip or ask the Ministry of Revenues or your HR team.
Does it work for yearly salaries?
Yes. Switch Pay Period to Yearly and enter your annual figures. Employment income tax is worked out monthly, as the law sets it, and multiplied by 12.