Thursday, January 8, 2026

U.S. report highlights significant shortcomings in Ethiopia’s labor law implementation

By Eyasu Zekarias

The 2024 Human Rights Report released by the U.S. Bureau of Democracy, Human Rights, and Labor Affairs reveals notable deficiencies in how Ethiopia enforces its labor laws, with particular concerns about wages, working conditions, and workers’ rights.

One major gap identified is Ethiopia’s absence of a national minimum wage. While certain public institutions have set their own wage floors, workers in critical sectors such as industrial parks frequently earn salaries below the poverty line. The Confederation of Ethiopia Trade Union (CETU) has called on the government to establish a comprehensive national minimum wage, increase civil servant pay, and uphold workers’ rights to form unions.

The report underscores that, although Ethiopian labor law stipulates a 48-hour working week with additional surcharges for overtime, the Ethiopian Human Rights Commission has reported widespread poor working environments and insufficient wages across many factories and industrial parks. These poor conditions contribute to high labor turnover rates, a problem confirmed by the International Labour Organization (ILO), which cites low pay as a primary factor.

Beyond remuneration, the report highlights significant obstacles workers face in exercising their constitutional rights to unionize and bargain collectively. Despite legal guarantees, regulations place severe restrictions on union formation for certain groups including administrative staff, teachers, healthcare workers, judges, and domestic employees. Moreover, workers dismissed due to union activities often encounter protracted legal battles, as Ethiopia’s sluggish court system delays resolution for years.

The enforcement capacity of the Ministry of Labor and Skills is also criticized. The report points to a shortage of labor inspectors and inadequate recordkeeping of violations, further hindering regulatory oversight. These challenges are exacerbated in Ethiopia’s informal sector, employing over 70% of urban workers, where labor laws are seldom applied.

Consequently, a large portion of Ethiopia’s workforce remains unaware of their labor rights and struggles to organize collectively, leaving them vulnerable to exploitation and with diminished power to advocate for improved wages and safer conditions.

The U.S. report’s findings underscore an urgent need for Ethiopia to review and strengthen its labor policies. Addressing wage inadequacies, improving workplace environments, and safeguarding workers’ fundamental rights are critical steps to ensuring fair and equitable labor practices across all sectors of the Ethiopian economy.

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