Ethiopia has a population of roughly 117 million people[1] with 78% living in rural areas[2] and 22% living in urban settings.[3] Agriculture is central to the Ethiopian economy, assuming 64% of the workforce[4] and representing 38% of Ethiopia’s GDP.[5]
In the last decades, agriculture’s share of the GDP has shrunk significantly.[6] Even so, agriculture employs approximately 67% of the Ethiopian workforce[7] and plays a pivotal role in the life and livelihood of most Ethiopians. Approximately 74% of the country’s farmers are smallholder farmers with an average farm size of less than one hectare. Smallholders are responsible for most of the agricultural production in Ethiopia, yet about 67% of Ethiopian smallholders live below the national poverty line.[8]
The top produced commodities in Ethiopia are maize, cereals, wheat, sorghum and fresh cow milk.[9] Ethiopia’s top exported products in terms of quantity are green coffee, sesame seed, dry beans, soy beans and shelled groundnuts.[10]
- ^ World Bank. (2021). https://data.worldbank.org/country/ethiopia
- ^ World Bank. (2021). https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=ET
- ^ World Bank. (2021). https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=ET
- ^ World Bank (2021). https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=ET
- ^ World Bank. (2022). https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=ET
- ^ International Trade Administration. Ethiopia Country Commercial Guide. https://www.trade.gov/knowledge-product/ethiopia-market-overview?section-nav=4826
- ^ World Bank (2021). https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=ET
- ^ FAO (2018) Small family farms country factsheet. http://www.fao.org/3/i8911en/I8911EN.pdf
- ^ FAOSTAT (2020). http://www.fao.org/faostat/en/#rankings/commodities_by_country
- ^ FAOSTAT (2020). http://www.fao.org/faostat/en/#rankings/commodities_by_country_exports
Minimum wage
A living wage in Ethiopia varies per region and skills level. Some government institutions and public enterprises set their own minimum wages. Public sector workers have minimum wages ranging between 420 (7 EUR) to 1,172 Ethiopian birr (20 EUR) per month. These minimum wages vary based on position rankings and starting versus ceiling salaries.[1] The government of Ethiopia has generally not been effective in enforcing labour law when it comes to wages. Worker's health and safety are not protected to a satisfactory level in many industries, especially in the domestic and the informal agricultural sector. In addition, wages in the informal sector are so low that workers cannot even have access to bare necessities solely relying on them[2]
Living wage
The Global Living Wage Coalition has developed a Living Wage benchmark based on the Anker methodology, for non-metropolitan urban Ethiopia, Ziway region which focuses on the floriculture sector.
The living wage estimate for Ziway Region (non-metropolitan urban Ethiopia) is 14,611 Ethiopian Birr (255 EUR) per month. This estimate is based on the cost of living for a family of 5 with 1.65 workers per family[3]. The region of Ziway, is one of the areas of Ethiopia with the largest share of foreign investment concerning the flower industry. Flower farms are a source of attraction for mostly internal migrants searching for better working conditions. This influx of migrants however, has been a source of socio-economic changes in the region, which strongly affect worker's living costs.
Living income
The Global Living Wage Coalition has published a working paper with the Living Income for rural Guji zone, a small administrative division in the south of Ethiopia in the Oromia Region where coffee production is important.
This Guji zone report concludes that living income is 8,544 Ethiopian Birr (153 EUR) for this specific region. This the income required by typical rural families to be able to afford a basic but decent living standard. The value is 7% higher than the average for rural Ethiopia, which the Anker National Living Income reference value defined as 7,985 Ethiopian Birr (143 EUR) per month. This is because family sizes are larger in rural Guji zone although living costs per person are similar[4].
- ^ WageIndicator Foundation. (2023). https://wageindicator.org/salary/minimum-wage/ethiopia/23413-public-sector-guard-laborers
- ^ U.S. Department of State. 2019 Country Reports on Human Rights Practices: Ethipia. https://www.state.gov/reports/2019-country-reports-on-human-rights-practices/Ethiopia/
- ^ Global Living Wage Coaltion. (2023). Living Wage for Ziway Region, Ethiopia https://www.globallivingwage.org/living-wage-benchmarks/non-metropolitan-urban-ethiopia/
- ^ Global Living Wage Coaltion. (2021). Living income for Guji Region, Ethiopia. https://globallivingwage.org/wp-content/uploads/2022/09/Living-income-for-Guji-Zone_Oroma-region_Ethiopia-2021_V4.pdf
Fairtrade Living Income Reference Price for Coffee from Ethiopia 
A Fairtrade LIRP indicates the price needed for an average farmer household with a viable farm size and an adequate productivity level to make a living income from the sales of their crop. This study was valid in 2023.
Living Income for Rural Ethiopia, Guji Zone, Oromia Region
Anker living income estimate for Guji Zone (Oromia Region), where coffee is grown. Global Living Wage Coalition, 2021.
Updates on Living Wage Benchmark, Non-Metropolitan Urban Ethiopia
Lliving wage estimate in non-metropolitan urban Ethiopia. Context provided for the horticulture sector. By the Global Living Wage Coalition.
Women@Work Campaign
Program to improve the position and labour conditions of women workers in global supply chains of flowers and vegetables in East and Southern Africa.
Towards a Living Wage
An analysis to close the living wage gap of workers producing roses in Kenya, Ethiopia and Zambia.
East Africa Flower Industry
Promoting living wages for workers in the floriculture sector in Ethiopia, Kenya and Tanzania. By Fairtrade International, Fair Flower Fair plants and Hivos; co-funded by IDH (2014-2016).