Low and inconsistent wages remain a major concern for workers in Ethiopia’s textile and garment industry, where pay varies between factories and has not kept pace with rising living costs, according to a study on employment and working conditions in the sector.
The report, Productive Employment and Decent Work for Youth and Women in Textile and Garment Manufacturing, says Ethiopia has no national or sector-specific minimum-wage policy. Under the current system, employers largely determine wages, contributing to significant differences in pay across companies and industrial parks.
A workers’ survey conducted between July and September 2021 found that the average monthly basic salary was 1,349 birr at Hawassa Industrial Park and 2,110 birr at Bole Lemi Industrial Park. The figures reflect the survey period and should not be interpreted as current wage rates.
The study also highlighted the gap between workers’ earnings and basic expenses. Surveyed workers at Hawassa Industrial Park reported average monthly spending of 779 birr on food, 371 birr on rent and 280 birr on transport. At Bole Lemi Industrial Park, average monthly expenses were 1,624 birr for food, 1,335 birr for rent and 222 birr for transport.
The report cited a separate survey that found a textile worker at Eastern Industrial Park received a monthly salary of 3,400 birr. Researchers attributed the higher average there partly to differences in the types of products manufactured and the park’s longer operating history.
Ethiopia’s Labour Proclamation No. 1156/2019 provides for the establishment of a Wage Board, bringing together government, workers and employers to address minimum-wage policy. However, the study says the board had not been established at the time of the report, leaving workers without a statutory wage floor.
Researchers said the lack of a minimum wage contributes to low pay and variation between firms, including those operating inside and outside industrial parks. Wages are also not adjusted regularly to keep pace with inflation, the report said.
Workers surveyed in the sector have raised concerns about the relationship between their workloads and pay. The study noted that unclear wage-setting systems can also contribute to perceptions that salaries are unfair.
The report said some employers provide non-wage benefits, including meals, transport, housing allowances and medical care. But access to such support varies among factories, and workers’ assessments of the quality of services are mixed.
A 2021 survey of textile and garment workers in Hawassa and Addis Ababa found that many received transport or food from their employers. Yet more than 70 per cent of respondents rated the quality of workplace food as bad or very bad, while many also criticised the quantity and variety of meals.
The study links low wages and high living costs to wider challenges in the sector, including labour turnover and absenteeism. Many textile and garment workers are young people who have moved from rural areas to industrial centres, where housing, transport and other costs can add pressure to limited incomes.
Researchers argue that improving pay and working conditions is important not only for workers’ welfare but also for productivity and the industry’s ability to retain experienced staff.
The report recommends strengthening dialogue among government, employers, workers and trade unions to address wage-setting and other labour issues. It also calls on employers to provide jobseekers with clear information about wages and working conditions and to develop career pathways and skills training for employees.
Ethiopia’s labour law recognises workers’ rights to organise and bargain collectively. However, the report notes that union membership remains limited across the country, even as trade unions have become more active in some textile and garment factories.
The study’s wage figures are based on surveys and research conducted mainly between 2017 and 2021. They provide a snapshot of pay and expenses at that time, rather than a current assessment of wages across the sector.
