Employment law

Labour Proclamation No. 1156-2019


53. General

1/ “Wages” means the regular payment to which a worker is entitled in return for the performance of the work that he performs under a contract of employment.

2/ For the purposes of this Proclamation, the following payments shall not be considered as wages:

a)Over-time pay;

b)Amount received by way of per-diems, hardship allowances, transport allowance, r e l o c a t io n expenses, and similar allowance payable to the worker on the occasion of travel or change of his residence;



e)Other incentives paid for additional work results;

f)Service charge received from customers.

54. Conditions of Payments for Idle Time

1/Unless otherwise provided for in this Proclamation or the relevant law, wages shall be paid only for work performed.

2/Not with standing Sub-Article (1) of this Article, a worker shall be entitled to payment of his wage if, while being ready to work, he is unable to work due to an interruption in the supply of tools or raw materials or due to other causes not attributable to him.



55. General

1/ Wages shall be paid in cash, provided, however, that where the employer and workers agree, it may be paid in kind. Wages paid in kind may not exceed the market value in the area of the payment in kind and in no case may exceed 30% of the wages paid in cash.

2/ A Regulation of the Council of Ministers shall determine the powers and responsibilities of a Wage Board which shall comprise representatives of the Government, employees and trade unions together with other stakeholders that will periodically revise minimum wages based on studies which take into account the country’s economic development, labour market and other considerations.

56. Execution of Payments

1/ Unless agreed otherwise, wages shall be paid on working days and at the place of work.

2/ In case where the day of payment mentioned in Sub-Article (1) of this Article falls on weekly rest day or a public holiday, the day of payment shall fall on the preceding working day.

57. Payment in Person

Unless otherwise provided by law or collective agreement or work rules, wages shall be paid directly to the worker or to a person authorized by him.

58. Time of Payment

Wages shall be paid at such intervals as a provided for by law or collective agreement or work rule or contract of employment.

59.Deduction from Wages

1/ The employer shall not deduct from, attach or set off the wages of the worker except where it is provided otherwise by la w or collective agreement or work rules or in accordance with a court order or a written agreement of the worker concerned.

2/Unless the worker expresses his consent in writing, the amount that may be deducted at any one time, from the worker’s wage shall in no case exceed one-third of his monthly wage.

60.Keeping Record of Payment

1/ The employer shall keep a register of payment specifying the gross pay and method of calculation of the wage, other remunerations, the amount and type of deduction, the net pay and other relevant particulars on which the signature of the worker is a fixed unless there is a special arrangement.

2/The employer shall have the obligation to make the register accessible and to explain the entries thereof, to the worker upon the latter’s request.

3/ The fact that a worker has received without protest the amount indicated on the register shall not constitute waiver of his right to any part of his wages that was due.

Pages: 1 2 3 4 5 6 7 8 9 10 11 12

11 replies »

  1. their is conflict between article 68 (d) English description and the Amharic meaning and also against article 75(1)

  2. What if the employer give termination with notice while the undertaking is relocated or actually continue at another location by closing its activity at the location where the employee was working. The post of the employee is also continue as it is at new location.

  3. I have a Question why modified 377/2003 or what is the defference between 377/2003 and 1156/2019 labor proclamation

  4. what if aan employee issued a 30 day leave warning but the employer fired the employee before the expiry of the 30 day warning paying him only 15 days salary? is it under lawful termination or unlawful termination?

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.