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Employment injury benefit calculator in Ethiopia

Employment injury benefit calculator

What Ethiopia's private pension scheme pays after a work injury

Short answerChecked 28 October 2026
Under Proclamation No. 1268/2022, a private-sector employee with an employment injury of 10% or more is paid by the pension scheme. If the injury prevents any paid work, the incapacity pension is 47% of the salary of the month before the injury, for life (Art. 36). If you can still work, a one-off gratuity of 47% × monthly salary × 60 × the degree of injury is paid (Art. 38). On a salary of ETB 12,000 and a 30% injury, that is ETB 101,520.
Employment injury benefit (private-sector pension scheme)

For a private-sector employee covered by Proclamation 1268/2022, after an injury at work or an occupational disease.

After the injury, can you still work?
ETB 101,520.00 one-off incapacity gratuity

With an injury of 30% and the ability to keep working, the scheme pays a lump sum of 47% of your monthly salary, times 60 months, times the degree of injury.

Incapacity gratuity
Salary of the month before the injuryETB 12,000.00
× 47% (Art. 38)ETB 5,640.00
× 60 monthsETB 338,400.00
× degree of injury 30% = lump sumETB 101,520.00

Formula: salary × 47% × 60 × degree of injury

Source: Private Organization Employees' Pension Proclamation No. 1268/2022, Arts. 33–38 (Federal Negarit Gazette No. 16, 18 March 2022).

Limits: An estimate from the Proclamation's formulas. The medical board sets the degree of injury and the pension fund decides the benefit. The lump sum is not paid when the employer or an insurer already compensates the injury under another law or agreement (Art. 37(2)). Workers outside the scheme are covered by the Labour Proclamation instead.

What next: outside the pension scheme? Employer liability under the Labour Proclamation

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Answers come from the law, the regulator and the insurers' own documents, with the source under each answer. General information, not advice.

The rules the calculator uses

From Part Seven of the Private Organization Employees' Pension Proclamation No. 1268/2022:

ArticleRule
Art. 27An employment injury is an occupational accident or an occupational disease.
Art. 28A self-inflicted injury is excluded — including ignoring the employer's safety instructions or working drunk.
Art. 32The employer notifies the injury in writing to the pension administration within 30 days, or becomes liable for it.
Art. 33An authorised medical board assesses the degree of injury.
Arts. 35–36Injury of at least 10% and permanent incapacity for any paid work: pension for life of 47% of the salary of the month before the injury, or the retirement pension if that is higher.
Arts. 37–38Injury of at least 10% without loss of capacity to work: a lump sum of 47% of that monthly salary × 60 × the degree of injury — unless the employer or an insurer already compensates the injury under another law or agreement.

Worked example

  • Selam earned ETB 12,000 in the month before a workshop accident. The medical board assesses her injury at 30%, and she can keep working.
  • Gratuity: 12,000 × 47% = 5,640; × 60 = 338,400; × 30% = ETB 101,520, paid once.
  • Had the accident left her unable to do any paid work, she would instead receive ETB 5,640 a month for life (12,000 × 47%), or her retirement pension if higher.
A worker who is not in the private pension scheme is covered by the employer's liability under the Labour Proclamation: see employment injury and business insurance.

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Frequently asked questions

How much compensation for a work injury in Ethiopia?

For a private-sector employee in the pension scheme with an injury of at least 10%: 47% of the last monthly salary as a pension for life if you can no longer do any paid work, or a lump sum of 47% × salary × 60 × the degree of injury if you can (Proclamation 1268/2022, Arts. 36 and 38).

Who decides the percentage of injury?

An authorised medical board, using the schedule of degrees of incapacity issued by the pension administration (Arts. 29 and 33).

Does an injury under 10% give a benefit?

Not from the pension scheme: its incapacity benefits start at 10% (Art. 34).

Sources

  1. Private Organization Employees' Pension Proclamation No. 1268/2022 — Federal Negarit Gazette No. 16, 18 March 2022 (gazette copy)
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Supervisor in Ethiopia: National Bank of Ethiopia

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