Ethiopia Payroll Tax for Odoo
Employment income tax schedule and 7% / 11% pension — computed per employee
Run statutory Ethiopian payroll directly in Odoo. This module computes employment income tax and pension contributions for each employee, handles the transport-allowance exemption, produces a payroll register (CSV and Excel) and a statutory remittance summary for the Ministry of Revenue and the pension fund. It is built on the Human Resources app and carries its own payslip and computation models, so it needs no Enterprise payroll. Compatible with Odoo 18 and Odoo 19, Community and Enterprise.
Income tax on editable bands
Monthly employment income tax on the progressive schedule of the Federal Income Tax (Amendment) Proclamation No. 1395/2025 (0% / 15% / 20% / 25% / 30% / 35%, with the ETB 2,000 exemption threshold). The band scale is a fully editable model, so you adjust it whenever the law changes. Each payslip also shows the equivalent quick-method top rate and deduction fee derived from the schedule.
Pension 7% & 11%
Pension contributions under the Private Organisation Employees' Pension Proclamation No. 1268/2022: 7% on the employee and 11% on the employer, charged on basic salary, with an opt-out for non-pensionable staff. The combined 18% remittance is totalled for you.
Transport-allowance exemption
A transport allowance is exempt up to 25% of basic salary, capped at ETB 2,200 per month; the excess is automatically added to taxable income. Both the rate and the cap are editable in company settings.
TIN validation
The employee TIN field is validated against the canonical ten-digit Ethiopian Taxpayer Identification Number format, so invalid numbers are caught before payroll is run, with a pretty-print helper for documents.
Payroll runs & statutory register
Populate employees, compute pension, income tax and net pay in one click, review run totals, and export a CSV or Excel payroll register. A statutory remittance summary wizard totals the employment income tax for the Ministry of Revenue monthly withholding declaration and the 18% combined pension remittance so you know exactly what to remit.
BYOK-friendly: the module produces the statutory figures and register files locally; you file them through the Ministry of Revenue e-Tax portal and the pension agency with your own credentials. No employee data leaves Odoo.
Disclosure: this module computes statutory deductions locally and produces register/summary files; it does not transmit any data to a third party. All rates, limits, bands and the transport exemption carry the current statutory defaults; confirm them against the latest official Ministry of Revenue and pension-agency guidance before running live payroll.
Screenshots
Payroll Run Computed Lines
Payslip Line Detail Computed
Update date: 2026-07-02
| Availability |
Odoo Online
Odoo.sh
On Premise
|
| Odoo Apps Dependencies |
•
Discuss (mail)
• Employees (hr) |
| Lines of code | 892 |
| Technical Name |
l10n_et_payroll |
| License | OPL-1 |
| Website | https://pokutsoft.com/ |
Odoo Proprietary License v1.0 This software and associated files (the "Software") may only be used (executed, modified, executed after modifications) if you have purchased a valid license from the authors, typically via Odoo Apps, or if you have received a written agreement from the authors of the Software (see the COPYRIGHT file). You may develop Odoo modules that use the Software as a library (typically by depending on it, importing it and using its resources), but without copying any source code or material from the Software. You may distribute those modules under the license of your choice, provided that this license is compatible with the terms of the Odoo Proprietary License (For example: LGPL, MIT, or proprietary licenses similar to this one). It is forbidden to publish, distribute, sublicense, or sell copies of the Software or modified copies of the Software. The above copyright notice and this permission notice must be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
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