The Ethiopian government has issued a new law which extends pension benefits to permanent employees of private organizations. The bill was signed by the head of state i.e. President of the Federal Democratic Republic of Ethiopia, President Girma Woldegiorgis on June 24, 2011. However, the effective date of the bill starts on the date of its publication in the Negarit Gazeta, as it is the case with other statutes issued by Parliament. Even though the exact date of the publication of the law has not been officially declared, it is almost a week since the publication of the proclamation by Bernanena Selam Printing Press, the official printing press for the law maker for the last 60 years.
When one looks into the transitory provisions, specifically those provisions providing for time limit in which contribution by the employee/employer and payment of pension benefits by Private Organizations Pension Agency will start, it becomes clear that the new law will not fully enter in to force from the date of its publication. According to article 57 sub article 6(a) of the proclamation, payment of pension contribution starts as of July 8, 2011. Similarly, pension benefits shall commence to accrue as of the next month of one year after the effective date of this proclamation. Types of Pension benefits Generally speaking, the private organization employees pension proclamation provides for four categories of pension benefits. These are;
Factors determining the type of pension benefits Entitlement to any of the pension benefits and payments is dependent upon some specific conditions laid down by the proclamation. These may be broadly mentioned as length of service, ground of termination of employment contract and the degree of employment injury. The grounds of termination of employment contract could those mentioned in the proclamation (“pension law grounds) and those not mentioned in the proclamation (“non-pension law grounds”) CLICK HERE TO CONTINUE READING
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AuthorAbrham Yohannes Archives
February 2012
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