Ethiopian Payroll System
Good evening
Run payroll, review compliance, and keep your monthly payroll cycle under control from one place.
Payroll trend
Monthly checklist
Compliance Notes
- Employee pension 7% of basic — does NOT reduce taxable income
- Employer pension 11% of basic (company cost)
- PAYE 0%–35% on Basic + Taxable Allowances + OT + Bonus
- Expats exempt from pension · Tax-free threshold ETB 2,000/month
Recent Runs
Keep the payroll cycle moving
Use the dedicated HR, Workflow, Accounting and Reports modules for the next stage of your monthly process.
Employee Directory
| ID | Name | Position | Basic | Hire | Status | Actions |
|---|
HR & People
Employee lifecycle, organization, contracts, salary history and workforce records.
Employee lifecycle
Hire, maintain, transfer and exit employees with a single master record.
Organization
Departments and positions used for payroll and management reporting.
HR records
Contracts, salary changes and document reminders connected to employees.
Departments & Positions
Maintain the organization structure used across HR and payroll.
Contracts & Salary History
Maintain contracts and compensation changes as structured employee records.
Documents & Records
Track employee documents, expiry dates and HR records.
People & Workforce Center
Manage your workforce, employment lifecycle, organization structure and salary intelligence from one place.
Employee lifecycle
Current workforce composition
Departments
Headcount and salary view
Employee Directory
Search, review and maintain employee master records.
| ID | Employee | Department | Position | Hire Date | Basic | Status |
|---|
Payroll Approval Workflow
Control every payroll period from preparation through payment. Each transition is recorded in the local audit trail.
Control checklist
Approval record
Payroll
Prepare inputs, calculate payroll, manage overtime, bonuses and termination payments.
Run Monthly Payroll
Monthly attendance, overtime hours, commission, and any custom allowances/deductions from Settings. OT is calculated here — not after.
Custom types from Settings appear as columns below. Hourly rate uses Settings (days × hours).
Tip: scroll sideways to see all columns. Click any box to type attendance, OT hours, commission, or deductions.
| Employee | Basic | Days | OT Day | OT Night | OT Rest | OT Hol | Commission | Other Ded. | OT ETB |
|---|
Termination Benefits
Severance, annual leave & compensation — formulas from your reference calculator.
Bonus Calculator
Bonus amortized over 12 months to find marginal tax, paid as lump sum.
Single employee
Bonus is typically 1 or 2 months of salary. Gross bonus = Basic × months.
Bulk Employee Bonus
Bonus is tied to salary (e.g. 1 or 2 months). Choose months, then Fill all — or enter gross per employee. Tax uses 12-month amortization.
| Employee | Monthly Basic | Gross Bonus | Bonus Tax | Net Bonus |
|---|
Accounting & Payment Control
Generate a balanced payroll journal and control the salary payment for a saved payroll period.
Bank & Payment
Control salary payment batches, missing bank details and payment reconciliation.
Payment batch
Select a saved payroll period and review the bank-ready population.
Bank readiness
Reconciliation
Record payment reference and compare the payroll net amount with the bank batch.
Salary Payment Batch
Every saved payroll line appears here with bank account and net pay.
| # | Employee | Bank Account | Status | Net Pay (ETB) |
|---|
Reports & Analytics
Operational, compliance, bank and management reports from saved payroll data.
Payroll reports
Register, payslips, monthly payroll and employee cost.
Compliance
PAYE and pension declaration data for the selected payroll period.
Management
Use the dashboard and payroll history to review workforce and payroll trends.
Reports
Tax CSVs (MoR/POESSA), bank transfer list, and printable payroll register with signature column.
Payroll History
Review saved payroll periods, workflow status and payment history.
Audit Trail
Chronological record of payroll, HR, administration and payment actions.
Company
2026 PAYE Brackets
| Income (ETB) | Rate | Deductible |
|---|---|---|
| 0 – 2,000 | 0% | 0 |
| 2,001 – 4,000 | 15% | 300 |
| 4,001 – 7,000 | 20% | 500 |
| 7,001 – 10,000 | 25% | 850 |
| 10,001 – 14,000 | 30% | 1,350 |
| Above 14,000 | 35% | 2,050 |
Taxable = Basic + Taxable Allowances + OT + Bonus (pension not deducted).
Overtime Rates (Labour 1156/2019)
Hourly rate = Basic ÷ (working days × hours/day). Used when running payroll.
Custom Allowances
Add allowance types used on employees (taxable or not).
Custom Deductions
Add deduction types (loan, penalty, etc.) applied on payroll.
Accounting Defaults
Account labels used by the payroll journal. These are labels only; connect them to your chart of accounts when posting to accounting software.
Tax & Pension Rules
Keep statutory rules visible and versioned by effective date. The current calculator continues to use the configured 2026 rules.
PAYE
Current monthly PAYE brackets shown above. Future versions can add effective-date rule sets.
2026 activePension
Employee and employer pension rates are displayed in the payroll calculation and accounting journal.
7% EE · 11% ERAudit principle
Changes to statutory settings should be logged with effective date and responsible user.
ControlledOrganization Defaults
Departments and positions are maintained from the HR module and reused by payroll and reports.
Data
Administration & Security
Manage local users, roles, permissions, payroll controls and system administration.
Users
Create, activate, deactivate and assign roles.
Roles & Permissions
Separation of duties for HR, payroll, accounting and approval.
System Controls
Core controls for payroll integrity and administration.
Data Integrity
Find and remove saved payroll lines for employees who are no longer in your Employees list (e.g. leftover records from a previous company).
Add Employee
Employee Payslips
Select an employee from the saved payroll period.