New bill tabled to legislators proposes salary deductions from gov’t, private employees for disaster relief funding
Addis Abeba – A new bill requiring both government and private sector employees to make monthly salary deductions has been presented to lawmakers. Introduced to the House of Peoples’ Representatives on 18 March, 2025, the draft proclamation seeks to establish the Ethiopian Disaster Risk Management Commission as an independent federal government body, with a provision that mandates employees to contribute a portion of their net monthly salaries.
According to the explanatory notes of the draft proclamation, which was reviewed by Addis Standard, the Ethiopian Disaster Risk Response Fund will be created to support disaster risk reduction, response, and rehabilitation efforts during the pre-disaster, disaster, and post-disaster periods.
“The draft proclamation was designed to establish a comprehensive legal framework that enables the Ethiopian Disaster Risk Management Commission to strengthen the capacity of federal and regional administrative institutions to effectively manage activities before, during, and after disasters,” said Tesfaye Beljige (PhD), chief government whip in the House, who provided a brief explanation of the bill.
The bill sets clear guidelines for financial contributions. It specifies that, “in addition to employee salaries, banks, microfinance institutions, digital banking service providers, and insurance companies should contribute through service charges such as loan fees, digital banking service fees, premium payments, and dividends from shareholding companies.”
These financial contributions, according to the draft proclamation, are intended to ensure adequate funding for disaster management and to secure contributions from various sectors of society.
The bill also mandates contributions from airline ticket sales, telecommunication voice and data services, passport and visa services, fuel supplier sales, and business permit fees. Furthermore, it stipulates that contributions will derive from proportional shares of the annual budgets of the federal government and municipalities, as well as from sales of tobacco and alcohol products, maritime transport and logistics services, and from donor and charitable organizations.
The legislation imposes a penalty on any company or entity that fails to collect and deposit funds into the designated bank account, as per the regulations issued by the Council of Ministers. The penalty includes the principal amount plus a 10% surcharge in addition to accrued bank interest.
“The collected funds will be used when a budget gap for disaster risk response is identified and to quickly fill the gap in the event of a sudden disaster,” the bill states.
Previously, members of parliament (MPs) voiced their concerns over the ability of fixed-income earners and civil servants to bear additional financial burdens on top of existing ones. This concern was particularly raised when the House of Peoples’ Representatives approved the draft Property Tax Proclamation in January 2025, which introduced a new levy on land within urban areas, as well as on land improvements and buildings.
The introduction of the property tax is part of the government’s broader initiative to increase public revenue. This also includes amendments to the value-added tax (VAT) and excise tax laws, along with the potential introduction of new taxes, such as green levies.
After a brief discussion lasting approximately eight minutes, the bill requiring employees to contribute a portion of their net monthly salaries was unanimously referred to the House’s Standing Committee on Foreign Relations and Peace Affairs for further scrutiny. AS
Crédito: Link de origem