Politics
The Pagume Dilemma: Resolving Ethiopia's 13th-Month Pay and Leave Dispute
BirrMetrics · 2 weeks ago · Read the Full Story on BirrMetrics
AI SUMMARY
Ethiopia faces an ongoing debate over whether salaried employees working during the short 13th month of Pagume should receive additional pay, compensatory leave, or if their existing monthly salaries already cover the period.
- Ethiopia's employment system operates on a 12-month salary structure while the Ethiopian calendar has 13 months, including the five-to-six-day month of Pagume.
- The national Labour Proclamation does not explicitly state whether salaried employees are entitled to a separate salary or compensatory leave for working during Pagume.
- Employers argue that monthly compensation covers continuous service throughout the year, meaning Pagume is already incorporated into the annual salary.
- Workers contend that requiring labor during a distinct 13th month without explicit, separate compensation creates the appearance of unpaid work.
- The Federal Supreme Court Cassation Bench ruled in 2014 that Pagume does not constitute a 'month' for specific legal calculations under the Civil Code, but this did not resolve the salary issue.
- Three potential policy options are being discussed: explicitly stating that monthly salaries cover Pagume, requiring proportional additional pay, or granting compensatory leave.
- Experts emphasize that any change would require a thorough payroll-impact assessment rather than broad budgetary calculations.
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