Jira & Confluence 
Bitrix24 New income tax 2025 · pension 7% · gross to net
Ethiopia salary calculator 2026 — your take-home pay in birr with the new income tax and pension
Short answer. Enter the basic salary and allowances from your offer and see the income tax, your 7% pension and what lands in your account each month — with the brackets in force since 8 July 2025. Employment income tax, monthly: br 0–2,000: 0% · 2,001–4,000: 15% · 4,001–7,000: 20% · 7,001–10,000: 25% · 10,001–14,000: 30% · over 14,000: 35% (Proclamation 1395/2025, new art. 11).
- Ask HR for the salary breakdown in writing — a week beforetype the date
- Check your first payslip against this calculation — a month aftertype the date
Check your own case.
Reminders, not legal deadlines.
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Take-home pay
Your net salary in birr — tax by the new brackets and 7% pension
Basic salary, taxable allowances and any tax-free allowances. You see the employment income tax, your pension, take-home pay and what the job costs the company — and an Excel that compares two offers.
- Ask HR which allowances are taxable and whether pension is taken from basic salary only.
- Compare two offers in the Excel: a bigger gross is taxed at up to 35% above Br 14,000.
- Check your first payslip against the calculation — tax, pension and net pay. Check at the start of the year (budget year from Hamle 1, 8 July).
Arithmetic with the official rates: employment income tax by Income Tax (Amendment) Proclamation No. 1395/2025, art. 11 — monthly Br 0–2,000 0%, 2,001–4,000 15%, 4,001–7,000 20%, 7,001–10,000 25%, 10,001–14,000 30%, above 35% (from 8 July 2025); pension by Proclamation No. 1268/2022, art. 10 — employee 7%, employer 11% of salary. Overtime, bonuses, loans and cost-sharing are not counted. Not tax advice.
Lida, Layers template assistant
Tell me your basic salary and allowances, and I'll show your take-home pay.
Compare two offers in the Excel before you sign.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| Employment income tax, monthly | Br 0–2,000: 0% · 2,001–4,000: 15% · 4,001–7,000: 20% · 7,001–10,000: 25% · 10,001–14,000: 30% · over 14,000: 35% | Proclamation 1395/2025, new art. 11 |
| Since when | Income derived from 8 July 2025 (Hamle 1, 2017 E.C.) | Proclamation 1395/2025, art. 4 |
| Pension, private sector | Employee 7%, employer 11% of salary | Proclamation 1268/2022, art. 10 |
| Salary for pension | Monthly salary for regular working hours, before tax | Proclamation 1268/2022, art. 2(7) |
Federal rates, the same in every region. Check at the start of the year: the Ethiopian budget year starts on Hamle 1 (8 July), and rates change only by a new proclamation.
Step by step
What to do, in order
1
Enter your offer
Basic salary and allowances, as written in the offer letter or contract.
2
See your take-home pay
Tax by the six brackets, 7% pension and net pay a month.
3
Compare and check
The Excel puts two offers side by side; the Word file is a payslip check and questions for HR.
Questions
How is salary tax calculated in Ethiopia?
On monthly taxable employment income, by six brackets: nothing up to Br 2,000, then 15%, 20%, 25%, 30% and 35% above Br 14,000. A quick way: taxable income × rate − deduction (Br 300, 500, 850, 1,350 or 2,050). For Br 28,000: 28,000 × 35% − 2,050 = Br 7,750.
What changed with the new income tax in 2025?
Proclamation 1395/2025 raised the tax-free amount from Br 600 to Br 2,000 a month and replaced the brackets: the lowest rate is now 15% and the top rate of 35% starts above Br 14,000. It applies to income from 8 July 2025.
Is pension deducted before or after tax?
In this calculation both are taken from gross pay: tax on taxable income, and your 7% pension on basic salary. The employer adds 11% on top. Your payslip should show both lines.
Are allowances taxed?
It depends on the allowance. Enter allowances your employer treats as tax-free separately; if you are not sure, put them with the taxable ones and ask HR.
Is it free? Do I need to sign up?
It's free and you don't need an account: fill it in and download. With a free account you can save a copy to your Layers and come back to it later.
Official sources
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
A calculation with published rates, not tax advice. Your employer's payroll is the real figure.