PROCLAMATION NO. 715/2011
A PROCLAMATION TO PROVIDE PENSION OF PRIVATE ORGANIZATION EMPLOYEES
WHEREAS it is part of the country’s social policy to expand the social security system and reach citizens step by step;
WHEREAS the strengthening and sustainability of the system greatly contributes to social justice, industrial peace, poverty reduction and development;
WHEREAS it has been found necessary to put in
place private organization employees pension scheme;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
PART ONE GENERAL
This Proclamation may be cited as the “Private Organization Employees Pension Proclamation No. 715/2011”.
In this Proclamation, unless the context otherwise requires:
1/“private organization employee” means a salaried person permanently employed in any private organization;
2/“permanent employee” means an employee hired for an indefinite period in accordance with the definition assigned to it under the Labour Proclamation No. 377/2003;
3/ “private organization” means an organization established to engage in commerce, industry , agriculture, construction, social service or in any other lawful activity and which has salaried employees and includes charities and associations;
4/“government” means the federal government and includes the regional states of the Federal Democratic Republic of Ethiopia;
5/“region” means any state referred to in
Article 47(1) of the Constitution of the Federal Democratic Republic of Ethiopia and includes the Addis Ababa and Dire Dawa city administrations;
6/“private service” means service rendered by employees of private organizations;
7/“benefit” means retirement pension, invalidity pension, incapacity pension or survivors’ pension and includes gratuity and the refundable pension contribution;
8/“salary” means monthly salary received by the employees of private organization, for services rendered during regular working hours without the deduction of any amounts in respect of income tax or any other matter;
9/“beneficiary” means an employee of private organization or his survivor who receives benefits or fulfils the conditions for receiving benefits in accordance with this proclamation.
10/“survivor” includes persons mentioned under
Article 39(3) of this Proclamation;
11/“private organization employees pension scheme” means a system established to pay benefit and provide service to employees covered by this Proclamation;
12/ “pension fund” means fund established for the purpose of collecting pension contributions and effecting benefit payments pursuant to this Proclamation;
13/“Agency” means the Private Organization
Employees Social Security Agency established by the Council of Ministers Regulation No. 202/2011;
14/“person” means any natural or juridical person;
15/any expression in the masculine gender includes the feminine.
3. Scope of application
Without prejudice to the appropriate provisions of the Proclamation No. 270/2002 that provide pension coverage to foreign nationals of Ethiopian origin and international agreements to which the country is a party, this Proclamation shall be applicable to employees of private organizations who are Ethiopian nationals.
2/ Notwithstanding the provision of sub-article
(1) of this Article:
a)employees, who have pension scheme or provident fund before the coming into force of this Proclamation, may either decide to continue to benefit from the pension scheme or the provident fund or agree to be covered by this Proclamation;
b)employees of religious organizations and political organizations and persons engaged in the informal sector shall, upon their consent, be covered by this Proclamation.
3/ Notwithstanding the provision of sub-article
(1) of this Article, this Proclamation shall not be applicable to:
a)domestic workers; and
b)employees of governmental international organizations and foreign diplomatic missions.