Ethiopia Payroll Tax
Ethiopia payroll for Odoo: employment income tax schedule (Proclamation 1395/2025) and pension 7% employee / 11% employer - computed per employee with a statutory remittance register.
Ethiopia Payroll Tax for Odoo
Employment income tax schedule and 7% / 11% pension — computed per employee
Run statutory Ethiopian payroll directly in Odoo. This module computes employment income tax and pension contributions for each employee, handles the transport-allowance exemption, produces a payroll register (CSV and Excel) and a statutory remittance summary for the Ministry of Revenue and the pension fund. It is built on the Human Resources app and carries its own payslip and computation models, so it needs no Enterprise payroll. Compatible with Odoo 18, Odoo 19 and Odoo 20, Community and Enterprise.
Income tax on editable bands
Monthly employment income tax on the progressive schedule of the Federal Income Tax (Amendment) Proclamation No. 1395/2025 (0% / 15% / 20% / 25% / 30% / 35%, with the ETB 2,000 exemption threshold). The band scale is a fully editable model, so you adjust it whenever the law changes. Each payslip also shows the equivalent quick-method top rate and deduction fee derived from the schedule.
Pension 7% & 11%
Pension contributions under the Private Organisation Employees' Pension Proclamation No. 1268/2022: 7% on the employee and 11% on the employer, charged on basic salary, with an opt-out for non-pensionable staff. The combined 18% remittance is totalled for you.
Transport-allowance exemption
A transport allowance is exempt up to 25% of basic salary, capped at ETB 2,200 per month; the excess is automatically added to taxable income. Both the rate and the cap are editable in company settings.
TIN validation
The employee TIN field is validated against the canonical ten-digit Ethiopian Taxpayer Identification Number format, so invalid numbers are caught before payroll is run, with a pretty-print helper for documents.
Payroll runs & statutory register
Populate employees, compute pension, income tax and net pay in one click, review run totals, and export a CSV or Excel payroll register. A statutory remittance summary wizard totals the employment income tax for the Ministry of Revenue monthly withholding declaration and the 18% combined pension remittance so you know exactly what to remit.
BYOK-friendly: the module produces the statutory figures and register files locally; you file them through the Ministry of Revenue e-Tax portal and the pension agency with your own credentials. No employee data leaves Odoo.
Disclosure: this module computes statutory deductions locally and produces register/summary files; it does not transmit any data to a third party. All rates, limits, bands and the transport exemption carry the current statutory defaults; confirm them against the latest official Ministry of Revenue and pension-agency guidance before running live payroll.
Screenshots
Payroll Run Computed Lines
Payslip Line Detail Computed
Update date: 2026-07-02
User guides (PDF)
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