Legislation

A PROCLAMATION TO PROVIDE FOR PUBLIC SERVANTS’ PENSION PROCLAMATION No. 714/2011

PART FIVE

RETIREMENT PENSION AND GRATUITY

19. Retirement Pension

1/A public servant who has completed at least 10 years of service and retires upon attaining retirement age shall receive retirement pension for life.

2/A public servant who has completed at least 20 years of service and separates from the service by voluntary resignation or for any other cause other than those provided for in this Proclamation shall receive retirement pension for life upon attaining retirement age.

3/A public servant who separates from the service after completing at least 25 years of service shall receive retirement pension for life beginning with five years prior to retirement age.

4/Without prejudice to the entitlement of pension right upon attainment of retirement age, the provisions of sub-article (3) of this Article shall not be applicable to a public servant who separates from the service on grounds of disciplinary measures.

5/Notwithstanding the provisions of sub-article

(1) of this Article, a senior government official or a member of parliament, who has served at least one full term and has attained the age of 50 years when he leaves office shall receive retirement pension for life.

6/Where it is ascertained that a public servant who has separated from service in accordance with sub-article (2) or (3) or (4) of this Article becomes incapable of fulfilling the medical conditions of service due to health problems prior to attaining the retirement age, he shall receive retirement pension for life starting with the month following such ascertainment; in case he dies, his survivors shall be paid benefits starting with the month following his death.

7/Notwithstanding the provisions of sub-article

(1) of this Article, a public servant who separates from the service due to the fact that the public office has ceased to exist, due to reduction of work force or for reasons relating to privatization, and his service and age are not less than 25 years and 50 years, respectively, shall, upon the decision of the Council of Ministers, receive retirement pension for life.

20. Amount of Retirement Pension

1/ The retirement pension of any public servant who has completed 10 years of service shall be 30% of his average salary for the last three years preceding retirement and shall be increased, for each year of service beyond10 years:

a)by 1.25% for a public servant other than member of the defense force or the police;

b) by 1.65% for a member of the defense force or the police.

2/The retirement pension of a senior government official or a member of parliament who has served at least one full term shall amount to 15% of his average salary for the last three years preceding retirement and shall be increased by 1.125% for each year of service beyond five years.

3/The retirement pension to be paid pursuant to sub-article (1) or (2) of this Article may not exceed 70% of the average salary of the public servant, senior government official or member of parliament for the last three years of service preceding retirement.

21. Retirement Gratuity

1/A public servant who has not completed 10 years of service and retires on attaining retirement age shall receive gratuity.

2/An outgoing senior government official or member of parliament who has served for less than one full term separates from service on attaining 50 or above years of age shall receive gratuity.

22. Amount of Retirement Gratuity

The gratuity payable in accordance with Article 21 of this Proclamation shall be:

1/for a public servant other than member of the defense force or the police, his salary for

1.25 month preceding retirement multiplied by the number of years of service;

2/for a member of the defense force or the police, his salary for 1.65 month preceding retirement multiplied by the number of years of service;

3/for a senior government official or a member of parliament, his salary for 1.125 month preceding separation from service multiplied by the number of years of service.

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8 replies »

  1. I need ur help ,to know about pension /retirment payment ,i am working for 5yr and still on food security programe (HABP) with out PF & retirment,can i ask payment of PF With out contractul agrement.

  2. I am Mulu Miesho
    Dear Abrham, I just want to know that whether pension is paid/deducted from overtime work or not.

  3. you guys did a great help to want get the proclamations for different purpose. So, be stronge

  4. Your blog is extremely important; however, the soft copies are damaged and can’t be downloaded.

    • Thanks for the comment. It would be a great help if you could tell which of the file are damaged or may be corrupt.
      I will immediately re-upload the files. As regards downloading, I have already responded to this issue in my previous
      comment. All google document files are downloadable and I advise you to see my comment as regards downloading
      google docs. Click HERE to see.

      • Hi Abrish. Long time no see. i am glad and proud to see your move like this. your good old friend WASIHUN the lawschool. you may reach me using my account at wasabema@gmail.com

  5. pension scheme is good for private employes but before lunching this law government must think MINIMUM WAGES[SALARY]which worker must get.there is no minimum wages act for labour working in any organisation yet due to lack of this law wokers are not getting sufficient money for their lively hood.
    for example any one is getting 400 birr or 500 birr per month how he will manage his family and children education etc

    engineer suraj bhan [working in ethiopia]
    suraj_bhan78@rediffmail.com

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