Photo: Fredynjeje, Wikimedia Commons, CC BY-SA 4.0Business insurance and work injury in Ethiopia
Employment injury and business insurance in Ethiopia
Short answerChecked 23 September 2026
Under Labour Proclamation 1156/2019, an Ethiopian employer is liable for employment injuries regardless of fault (Art. 96). For a worker outside the pension scheme, permanent total disablement is paid at five times annual wages (Art. 109), and death at five times annual salary to dependants, plus funeral costs of at least two months' wages (Art. 110). Insurance lets a business carry that risk.
What the Labour Proclamation says
From the Labour Proclamation No. 1156/2019:
| Article | Rule |
|---|---|
| 96 | The employer is liable for employment injuries irrespective of fault, except self-inflicted ones (ignoring express safety instructions counts as self-inflicted). |
| 109 | Permanent total disablement: at least 5 times annual wages, as a lump sum, for workers outside pension law; proportionate for partial disablement. Insurance benefits may never be lower. |
| 110 | Death: 5 times annual salary to dependants (50% to the widow or widower); funeral costs of at least two months' wages. |
| 171(i) | The Ministry determines which undertakings must arrange insurance for employment injury benefits. |
Covers businesses usually consider
- Workmen's compensation / employer's liability — pays the Labour Proclamation benefits.
- Fire and allied perils for premises and stock.
- Motor fleet — third-party cover is compulsory for every vehicle.
- Public liability, goods in transit, money and burglary.
All 18 insurers write general business; see the list. If a claim is disputed, the insurer must answer a complaint within 10 business days before you escalate to the NBE (FCP/01/2020).
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Frequently asked questions
Is an Ethiopian employer liable for a work accident?
Yes, irrespective of fault, except for self-inflicted injuries (Labour Proclamation 1156/2019, Art. 96).
How much is paid for a work-related death in Ethiopia?
For a worker outside the pension scheme, five times annual salary to dependants plus funeral costs of at least two months' wages (Art. 110).