Ethiopian Trade Union calls for income tax cuts, economic relief amid rising cost of living

Addis Abeba – The Confederation of Ethiopian Trade Unions (CETU) has called on the federal government to reduce income taxes for fixed-income workers and implement additional measures to mitigate the rising cost of living.

Kassahun Follo, President of CETU, told the Voice of America (VOA) that the confederation has submitted a letter to Prime Minister Abiy Ahmed, requesting urgent economic interventions to alleviate the financial challenges faced by workers.

Kassahun highlighted the declining purchasing power of the Ethiopian birr, which has left many workers, particularly those with fixed incomes, struggling to meet basic needs.

“Low-income workers are particularly affected. Despite their hard work, many cannot afford daily necessities, with some resorting to scavenging leftover food from hotels,” he said.

He also noted the difficult conditions faced by workers in industrial parks and expressed concern that previous discussions with the prime minister had not yielded concrete results. “The financial strain on workers continues to grow. Immediate and effective measures are needed,” Kassahun stated.

The confederation has previously called for guidelines on private-sector wage adjustments following the government’s macroeconomic reforms and plans to increase public-sector wages.

A recent International Labor Organization (ILO) study found that the median monthly wage in Ethiopia is 3,000 birr (approximately $52). The study also revealed that low wages have contributed to dissatisfaction, with 48% of workers in foreign-owned apparel firms leaving their jobs due to inadequate compensation. AS