Take-home 10,750.00 birr per month, from 15,000.00 gross. Income tax 3,200.00, pension 1,050.00.
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Work out Ethiopian income tax, pension and take-home pay — or start from the take-home you want and find the salary behind it. Allowances and overtime included, at the rates in force since July 2025.
Take-home pay
Monthly
10,750.00ETB
per month from 15,000.00 gross
- Effective rate
- 21.3%
- Marginal rate
- 35%
- Employer pays
- 16,650.00
Rates as of July 2025
How it is worked out
- 1.
Tax is charged band by band, not all at one rate. On 15,000 birr of taxable income the top band reached is 35%, but the whole salary works out at 21.3%.
- 2.
The first 2,000 birr of a month's income is not taxed at all — the floor was 600 until July 2025.
- 3.
Pension takes 7% from the employee and 11% from the employer, on basic salary alone. Allowances and overtime are outside it.
- 4.
Transport allowance is tax-free up to 2,200 birr or 25% of basic salary, whichever is smaller. Anything above that is taxed like salary.
Brackets are Income Tax (Amendment) Proclamation No. 1395/2025, in force since 8 July 2025; overtime rates are Labour Proclamation No. 1156/2019. The transport and per-diem ceilings come from directives under the older law and have not been restated publicly since — check yours against your contract. This is an estimate, not a payslip.
Where the tax falls
Monthly bands
- 0 – 2,0000%Taxed here: 2,000.00Tax: 0.00
- 2,001 – 4,00015%Taxed here: 2,000.00Tax: 300.00
- 4,001 – 7,00020%Taxed here: 3,000.00Tax: 600.00
- 7,001 – 10,00025%Taxed here: 3,000.00Tax: 750.00
- 10,001 – 14,00030%Taxed here: 4,000.00Tax: 1,200.00
- Over 14,000 (the band this salary reaches)35%Taxed here: 1,000.00Tax: 350.00
15,000.00 birr of taxable income, 3,200.00 birr of tax.