Say your basic pay is 10,400 Birr and you work 48 hours a week. That's 48 x 52 / 12 = 208 hours a month, so your rate is 50 Birr an hour. An hour of daytime overtime pays 75 Birr, a night hour 87.50, a rest day hour 100 and a public holiday hour 125. So 6 hours at night is 525 Birr, before tax. It's an estimate, not legal advice.
What are the overtime rates in Ethiopia?
Article 68(1) of the Labour Proclamation sets these as the least your employer can pay, on top of your normal wage.
- 6:00 a.m. to 10:00 p.m.: 1.5 times your ordinary hourly rate
- 10:00 p.m. to 6:00 a.m.: 1.75 times
- Your weekly rest day: 2 times
- A public holiday: 2.5 times
Why are there two public holiday rates?
The law has two lines. Article 75 pays your hourly wage times 2 for each hour of work on a public holiday. Article 68 pays times 2.5 for overtime on a public holiday. So the tool has both, and you pick the one that fits the hours. The law doesn't spell out how Article 75 sits beside a monthly salary, so ask your payroll office how it pays those hours.
How many overtime hours are allowed, and can I refuse?
Normal hours can't go over 8 a day or 48 a week. Overtime can't go over 4 hours a day or 12 hours a week, under Article 67(2). You can't be compelled to work overtime, except where there's an accident, force majeure, urgent work, or you're replacing an absent worker on work that runs without a break.
Is overtime taxed?
Yes, it's added to your pay for the month. Say you earn 12,000 Birr basic plus 1,500 overtime. Tax is on 13,500, which is 2,700. Pension stays at 840, because it's on basic salary only. You keep 9,960, compared with 8,910 without the overtime. So 1,500 of overtime puts 1,050 in your hand.
Who isn't covered, and how long do I have to claim?
The Labour Proclamation doesn't apply to managerial employees, personal service contracts, the armed forces, the police, state administration staff, judges and prosecutors. Ethiopian staff of foreign missions and international organisations are covered unless a regulation or treaty says otherwise.
Overtime is paid with your wages on pay day. If it isn't paid, don't wait. Under Article 163(3) a claim for wages or overtime is barred after six months from when it fell due. Labour disputes on hours and pay go to the labour division of the first instance court.
Questions people ask
How do I find my hourly rate from a monthly salary?
The law gives no monthly divisor. We use weekly hours x 52 / 12, which is 208 at 48 hours a week. Your employer or a collective agreement may use another figure, so you can change the hours in the tool.
Is 1.5 the most I can get?
No, the law sets these as minimums. A contract or collective agreement can pay more.
Do allowances count in the hourly rate?
The law multiplies your ordinary hourly rate, and Article 53 says overtime pay and allowances such as per diem, hardship and transport aren't wages. So start from your basic pay.
Does overtime raise my pension?
No. Pension is worked on your salary for normal hours, so overtime doesn't change it.
Sources
Checked 2 November 2026.