0 ratings0% found this document useful (0 votes) 253 views36 pagesPension Proclamation Draft0001
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PATPRE LPCAE APHENLPR
éTMAN TENA?Proclamation No.
VI EN]
A tes
PENSION PROCLAMATION
WHEREAS it has become necessary to amend Private Organization Employees Pension
Proclamation No 715/2011;
NOW, THEREFORE, in accordance with sub-article (1) of Article 55 of the Constitution
of the Federal Democratic Republic of Ethiopi
it is hereby proclaimed as follows:
1. Short title
This Proclamation may be cited as the “Private Organization Employees Pension
(Amendment) Proclamation No
-2015",
2. Amendment
‘The Private Organization Employees Pension Proclamation No. 715/201! is hereby
amended as follows:
Vv
2
Sub-articles (1) and (7) of Article 2 of the Proclamation are deleted and replaced
by the following new sub-articles (1) and (7):
“1/" ‘private organization employee’ means a salaried person employed in any
private organization for not less than one month;
7! “benefit” means retirement pension, invalidity pension, incapacity pension
or survivors’ pension and inchides gratuity:
Sub-article (2) of Article 3 of the Proclamation is deleted and replaced by the
following new sub-article (2)
“2/ Notwithstanding the provision of sub-article (1) of this Article employees
of religious and political organizations and persons engaged in the
informal sector shall, upon their consent, be covered by this
Proclamation.”
Sub-articles (1) and (2) of Article 9 of the Proclamation are deleted and replaced
by the following provision.
“Private Organizations Employees Pension Fund is hereby established.4
St
6
u
The following new sub-article (13) is added under sub-Article (12) of Article 11
of the Proclamation:
“134
The private organization fails to pay pension contributions collected
yaweent in sub-article (1) of this Article within one month shall be
liable to pay the unpaid pension contribution with bank deposit interest
rate calculated from the first day of the month following the last day
of the month in which payment of salary has been effected.”
Sub-article (2) Article 15 of the Proclamation is deleted and replaced by the
following new sub-article (2):
“3
Notwithstanding the provision of sub-article (1) of this Article, an
‘employee whose callected pension scheme or provident fund contribution
is transferred to the Private Organization Employees Pension Fund
pursuant to sub-article (7) of Article 57 this Proclamation, his service
period shall be counted to the extent the pension scheme or the provident
fund covers the contribution stipulated under Article 10 of this
Proclamation; provided, however, that the contribution which is excess of
what would have been contributed in accordance with this Proclamation
shall be refunded to the employee.”
Paragraph (d) of sub-article (3) of Article 16 of the Proclamation is deleted and
the existing paragraph (e) is restructured as paragraph (4);
Sub-article (6) of Article 16 of the Proclamation is deleted and the following new
sub-articles (6) and (7) are added after sub-article (5) and the existing sub-article
(7) is renumbered as sub-article (8):
“6)
7
Where an employee who has received retirement or invalidity gratuity
pursuant to this Proclamation or Public Servants Pension Proclamation is
re-employed as an employee of a private organization covered by the
Private Organizations Eifiployees Pension Scheme, his former service
shall, without prejudice to sub-article (3) of Article 15 of this
Proclamation, be counted along with the new service; provided that
the gratuity is paid back,
A person to whom reimbursement of pension contribution has been made
pursuant to this Proclamation or the Public Servants Pension Proclamation
before the coming in to force of this Proclamation, if employed as an
employee of a private organization covered by the Private Organizations
Employees Pension Scheme before retirement age, his former service
shall, without prejudice to sub-article (3) of Article 15 of this
Proclamation, be counted along with the new service; provided, however,8/
9
10/
us
that the reimbursed contribution he received shall be paid back with
interest calculated at bank deposit interest rate.”
Sub-article (1) of Asticle 18 of the Proclamation is deleted and replaceé by the
following new sub-article (1)
“1
‘An employee of a private organization who has served for at least 10
years, if terminates his contract of employment after the coming into
force of this Proclamation, he shall receive retirement pension benefit
for life upon attaining retirement age as stipulated under sub-article (1) of
Article 17 of this Proclamation.”
Sub-article (2) of Article 18 of the Proclamation is deleted and the existing sub-
articles (3) and (4) of Article 18 are renumbered as sub-erticles (2) and (3),
respectively, and the existing sub-article (5) is deleted and replaced by the
following new sub-article (4);
“af
Where it is ascertained that an employee of a private organization who has
separated from service in accordance with sub-article (1), (2) or (3) of this
Article due to health problems which prevents him from engaging in any
remunerated work prior to attaining the retirement age, he shall receive
retirement pension for life starting with the month following such
ascertainment; in case he dies, his survivors shall be paid benefits starting
with the month following his death.”
The following new sub-articles (2) and (3) are added after sub-article (1) of
Article 19 of the Proclamation and the existing sub-article (2) is renumbered as
sub-article (4):
“2
Without prejudice to sub-article (1) of this Article, an employee who is
employed in a private organization that has no organizational
structure or studied salary scale, or gets retired after serving for three
years or lesser after his employment if paid more than 25% annual
average salary increment on the salary paid a month before 3 years of his,
pension entitlement, the 25% annual average salary increment shall only
be considered for the calculation of three years average monthly salary.
For any private organization employee who has served as a national
defense force or as a member of police, the service shall be calculated and
added in accordance with the formula set under Public Servant Pension
Proclamation.”
‘The existing provision of Article 21 of the Proclamation shall be numbered as
sub-article (1) and the following new sub-artic
is added:"2 If an private organization employee gets more than 25% annual
average salary increment at any time on the normal salary paid a month
before a year, the 25% annual average salary increment shall only be
added for the
culation of geatui
Article 26 of the Proclamation is deleted and replaced by the following new
26. Non-Reimb: nsior
If the employment contract of private organization employee is terminated
due to any reason, the pension contribution shall not be reimbursed for the
private organization
s well as for the private organi
ation employee.”
Sub-article (2) of Article 48 of the Proclamation is deleted and the existing sub-
articles (3) and (4) are renumbered as sub-articles (2) and (3).
The following new sub-article (3) is added after sub-article (2) of Article 50 of the
Proclamation:
“4 Notwithstanding the provisions of sub-articles (1) and (2) of this Article, a
contribution for social health insurance scheme pursuant to Social Health
Insurance Proclamation shall monthly be deducted from pension benefit
and transferred to the Ethiopian Health Insurance Agency
Sub-article (1) of Article 51 of the Proclamation is deleted and replaced by the
following follows
\/ If @ private organization employee who receives retirement benefit is
employed in a private organization covered by this Proclamation and has
not reached the retirement age, his new service shall be added to his
previous service; provided, however, that if the retirement benefit based
on the accumulated service is less than the previous one, without prejudice
to his right to receive the previous pension, he shall not receive any type
of payment for the new service he provided.
Sub-articles (2), (3) and (4) are added after sub-article (1) of Article 51 of the
Proclamation and existing sub-articles (2) and (3) are renumbered as sub-articles
(5) and (6):
2/ The additional benefit to be paid for service rendered by re-employed
b-article (1) of this Article shall not
efit.
beneficiary in accordance with
exceed 50% of hus previous retirement pension ben
3 {a private organization employee is employed and salaried from two or
more private organizations, the pension contribution shall be collected
according to his choice from salary paid by one private organization:
“iprovided, however, that if a private organization employee is a public
servant as well, the pension contribution shail not be collected from a
salary paid by any private organization, and the service shall not be
caleulated for pension benefit.
4/ Ifa re-employed beneficiary was entitled to a retirement pension benefit
pursuant to this Proclamation or Public Servant Pension Proclamation
before the retirement age of 60, the service that has been rendered. by him
shall be added to re-consider his pension benefit with the pervious service
in accordance with sub-article (1) of this Article only when he attains the
tirement age of 60, provided, however, that if it is ascertained by a
medical board that the employee of a private organization is incapable of
fulfilling service due to employment injury or health problems and
separated from service, his pension shall be re-considered starting from
the next month following his separation from service.”
17/ The following new sub-article (7) is added after sub-article (6) of Article 57 of the
Proclamation:
“TI Employees who had pension scheme or provident fund and decided to
continue to benefit from their pension scheme or provident funds and
whose contract of employment is valid until the effective date of this
Proclamation shall, after the effective date of this Proclamation, be
covered by this Proclamation by transferring the accumulated
contribution of the pension scheme or the provident fund to the Private
Organizations Employees Pension Fund.”
‘This Proclamation shall enter into force up on the date of its publication in the Federal
Negarit Gazeta
Done at Addis Ababa, this - day of 2015.
MULATU TESHOME (Dr )
PRESIDENT OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIAWHEREAS it has become necessary to amend Private Organization Employees Pension
Proclamation No 715/2011;
NOW, THEREFORE, in accordance with sub-article (1) of Article 55 of the Constitution
of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
1. Short title
This Proclamation may be cited as the “Private Organization Employees Pension
(Amendment) Proclamation No. ~---2015”.
2. Amendment
The Private Organization Employees Pension Proclamation No. 715/2011 is hereby
amended as follows:
1 Sub-articles (1) and (7) of Article 2 of the Proclamation are deleted and replaced
by the following new sub-articles (1) and (7):
“I/ ‘private organization employee” means a salaried person employed in any
private organization for not less than one month;
7) ‘benefit’ means retirement pension, invalidity pension, incapacity pension
or survivors’ pension and includes gratuity;”
2/ — Sub-article (2) of Article 3 of the Proclamation is deleted and replaced by the
following new sub-article (2):
‘2/ Notwithstanding the provision of sub-article (1) of this Article employees
of religious and political organizations and persons engaged in the
informal sector shall, upon their consent, be covered by this
Proclamation.”
3/ — Sub-articles (1) and (2) of Article 9 of the Proclamation are deleted and replaced
by the following provision
“Private Organizations Employees Pension Fund is hereby established.”4
/
6
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‘The following new sub-article (13) is added under sub-Article (12) of Article 11
of the Proclamation:
“13/ ‘The private organization fails to pay pension contributions collected
yaweumnt in sub-article (1) of this Article within one month shall be
liable to pay the unpaid pension contribution with bank deposit interest
rate calculated from the first day of the month following the last day
ofthe month in which payment of salary has been effected.”
Sub-article (2) Article 15 of the Proclamation is deleted and replaced by the
following new sub-article (2):
“3/ Notwithstanding the provision of sub-article (1) of this Article, an
employee-whose callected pension scheme or provident fund contribution
transferred to the Private Organization Employees Pension Fund
pursuant to sub-article (7) of Article 57 this Proclamation, his service
period shall be counted to the extent the pension scheme or the provident
fund covers the contribution stipulated under Article 10 of this
Proclamation; provided, however, that the contribution which is excess of
what would have been contributed in accordance with this Proclamation
shall be refunded to the employee.”
Paragraph (d) of sub-article (3) of Article 16 of the Proclamation is deleted and
the existing paragraph (e) is restructured as paragraph (d);
Sub-article (6) of Article 16 of the Proclamation is deleted and the following new
sub-articles (6) and (7) are added after sub-article (5) and the existing sub-article
(7) is renumbered as sub-article (8):
“6! Where an employee who has received retirement or invalidity gratuity
pursuant to this Proclamation or Public Servants Pension Proclamation is
re-employed as an employee of a private organization covered by the
Private Organizations Eiptoyees Pension Scheme, his former service
shall, without prejudice to sub-article (3) of Article 15 of this
Proclamation, be counted along with the new service; provided that
the gratuity is paid back.
7/ A person to whom reimbursement of pension contribution has been made
pursuant to this Proclamation or the Public Servants Pension Proclamation
before the coming in to force of this Proclamation, if employed as an
employee of a private organization covered by the Private Organizations
Employees Pension Scheme before retirement age, his former service
shall, without prejudice to sub-article (3) of Article 15 of this
Proclamation, be counted along with the new service; provided, however,ee
8/
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10
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that the reimbursed contribution he received shall be paid back with
interest calculated at bank deposit interest rate.”
Sub-article (1) of Article 18 of the Proclamation is deleted and replaced by the
fotlowing new sub-article (1)
“WV
‘An employee of a private organization who has served for at least 10
years, if terminates his contract of employment afier the coming into
force of this Proclamation, he shall receive retirement pension benefit
for life upon attaining retirement age as stipulated under sub-article (1) of
Article 17 of this Proclamation.”
Sub-article (2) of Article 18 of the Proclamation is deleted and the existing sub-
articles (3) and (4) of Article 18 are renumbered as sub-articles (2) and (3),
respectively, and the existing sub-article (5) is deleted and replaced by the
following new sub-article (4);
“4
Where it is ascertained that an employee of a private organization who has
separated from service in accordance with sub-article (1), (2) or (3) of this
Article due to health problems which prevents him from engaging in any
remunerated work prior to attaining the retirement age, he shall receive
retirement pension for life starting with the month following such
ascertainment; in case he dies, his survivors shall be paid benefits starting
with the month following his death.”
The following new sub-articles (2) and (3) are added after sub-article (1) of
Article 19 of the Proclamation and the existing sub-article (2) is renumbered as
sub-article (4):
“y
Without prejudice to sub-article (1) of this Article, an employee who is
employed in a private organization that has no organizational
structure or studied salary scale, or gets retired after serving for three
years or lesser after his employment if paid more than 25% annual
average salary increment on the salary paid a month before 3 years of his
pension entitlement, the 25% annual average salary increment shall only
be considered for the calculation of three years average monthly salary.
For any private organization employee who has served as a national
defense force or as a member of police, the service shall be calculated and
added in accordance with the formula set under Public Servant Pension
Proclamation.”
The existing provision of Article 21 of the Proclamation shall be numbered as
sub-article (1) and the following new sub-arti
added: