Minimum Wage in the context of economic reforms in Ethiopia!

FES Ethiopia, ILO and the German Embassy recently organized a meeting that brought together investors, employers from employers’ organizations, from industrial parks and specific sectors to discuss the implications of the ongoing macroeconomic reforms and the critical topic of establishing a minimum wage in Ethiopia. During the discussions, participants underscored their support for a minimum wage, however, they also expressed concerns regarding the current uncertain macroeconomic environment. There was particular apprehension about the risk of a wage-price spiral, which could complicate the financial landscape for businesses.

Moreover, the participants emphasized the necessity for increased research support from the government to facilitate effective wage-setting. This support is essential for ensuring that wages are determined based on comprehensive data and economic conditions.

The meeting also focused on the effects of the EU Due Diligence Directive and German Supply Chain legislation. Employers highlighted the need for capacity building to help businesses comply with these regulations, as well as the desire for more time to adapt to the changing legal framework. They also called for better alignment between national laws and international standards to streamline compliance processes. Additionally, there was a strong consensus on the need for improved cooperation between the government and the private sector.

Overall, the meeting highlighted the importance of ongoing dialogue among stakeholders to navigate the complexities of economic reforms while ensuring that workers' rights are protected in Ethiopia. By fostering collaboration and addressing these pressing issues, stakeholders aim to create a more stable and equitable economic environment.