Hi everyone. I will be relocating to Addis at the end of this month wi

vivshark wrote:

Hi everyone. I will be relocating to Addis at the end of this month with my new job. I will be the first person they post overseas so in some ways they are learning the processes of relocating an employee with me. Initially, I was told I would be paid in US currency; however, they recently informed me that they will need to pay me in local currency in order to legally employ me in Addis.

Has anyone experienced something similar? Can you provide me with some insights on the pros and cons of being paid in local currency? Anything I should definitely bring up/negotiate with my employer? Please help!

Welcome to the forum.

Is your employer an overseas company ?? I worked in Ethiopia for an overseas company and we were paid in $US into our overseas accounts. We were given a small local currency allowance.

I would be questioning them as to why the change. With the $US being strong now perhaps they are looking to save a little by paying you local currency. It could also be a condition of them being able to work in Ethiopia.

I would ask about how easy it is for you to open a bank account and be able to transfer money out. 

Perhaps ask that they pay you in $US into an overseas account and an amount in local currency. 

Current rate is 20 birr to $US.

Thanks for the welcome and the response you provided.

Yes, the organization is from the US.  So far the response I have received as to why they need to pay me in local currency is because the Ethiopian government requires it.  Please see the full response below they forwarded to me from SafeGuard (external company helping my organization with the logistics, including opening a local bank account for me).  I am going to dig further into what this all means but an initial thoughts from you?

Also, I am going to explore the option of splitting my salary between the US and Ethiopia, preferably with the majority of it being in the US.  Will also ask about transaction/wiring fees to move Birr salary back to the US, as well as how they are planning on handling the exchange rate.

Do you have any recommendations and/or insights on how I should push for the exchange rate to be handled (e.g. peg to the US dollar, monthly average, etc.), assuming being paid locally is definitely mandatory? Also, do you know if there are any restrictions from the Ethiopian government on moving Birr from the local account to a US bank account?

To legally employ an Expat or local national in Ethiopia, or any other country, we would have to handle their payroll with our contractually obligated, in-country partner, the legal employer of record.  This ensures all statutory HR and taxes are handled legally as required by that country.  We take on all mitigating risk and ensure compliance. This turns the payroll from your side into an accounts payable and we simply invoice you monthly prior to actual delivered funds to the employee in local currency to a local bank account setup by our in-country partner.

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Response I was given:
If you were to pay them outside of that country, that would open your organization up to corporate exposure/risk and require an entity setup to be compliant within that country.   Worst-case scenario, if you are exposed as a corporation and not abiding by local employment laws, you can be banned from doing business in that country and face huge fines.

Seems the law has changed since I left. 

I would continue to argue for the salary split and if not successful then chase up about bank transfers and get the company to pay the transfer fees.

Hey  I would recommend trying to get part paid in us dollars into a bank outside the country.  the atms here in addis work well.  main reason I say this is because trying to get your money back out is a nightmare here.  what they and what they allow are two different things.   only get what you need in local if possible.
Also ake sure your company has already gotten the work visa and such done.   you are better if they handle it from the US from Ethiopian embassy than doing it here.

I would also suggest joining Internations a networking group for foreigners here in addis.   Probably get a lot of very good advice and help through the members.

To be honest i would say to you and your company, FORGET ETHIOPIA,.
I have lived here for 16 years.
Right now the government is making life extremely difficult for foreign investors and expatriates. We are not really wanted here.
As someone else said........they will tell you and your company one thing but it will be a lie Or the rules will change. You will neveer get money out of the country.
The investment office here promises new investors the world, when they have started all the promises made are broken, rules are changed, and prices of things needed by foreigners shoot up.
Tourists visa up from $20 to 50, for a month. Extension of tourist visa up from 20 to 100$.

Cost of residents card for foreign resident per year up from 400br to 1500br jusrt like that.

Find a country that really wants overseas skills.
SORRY...
British Addis resident 70-74   and 2002 to 2015.
.

My friend,
I want to say welcome to Ethiopia. I hope you gonna like it here in Addis.
Yes according to our local labor law all payments should be in local currency. However living expense here is cheaper.
You can divide your salary into two. Some part can be paid in local currency here and you can keep the remaining at your head office, ( I think this can work)

Have a nice trip to Addis