~fjl -,,>rt-- gazeta/gazeta-1995/proc no. 345-20… · federalnegarit gazeta...

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, .\ ~fJL . ~ ~7 -,,>rt-- fh..1-r'A'.r ~...eot.ft~ Jt q"ht.(1..r~ tT.nlLh ~Y-otr.A ~;Jt~ ;JtLfIJ FEDERAL NEGARIT GAZETA OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA "m~;;: ~(/D.1' ch-rC ~J~l; "'.&tit "'n11 M~ li "") :w~n; 9th Year No. 65 ADDIS ABABA-8°' June, 2003 nh..1.r'A'.f ~o~(,."q~ .&t qutJ(,.O..f~ tT.nfLtJ f ,n't,.n .,.mtlr:.}'. 9°tJC (1.1' mI1~~'} fmll] D?lD-tiliJ. '''If':~ "~-rc i=f.?)?;/:mtl?; ~'9U f(/D1"'P'~' 11'(,..,.1/"1' I1N~:J' '''If':~ 1R' ~if.~f.il '''If'~ ":-rc J:f.?!?;hilr.:J.?; itl\ (/D1"'p'.1' 1Pt..,.1/"":J'. ml:J' fmll] '''If':~ np'(,. "f. !I\m-1 f(/D1"'P'~' 11'(",,'1/"1' fm.l:" /J:"Y.: .fU"t'f: ",:"90 nDl/.~_:"f.m. (/Dm1 Dl/111lj'hC j fm'l:J' ,n1.1 O?"/i'"/i'&\lj' Dl/m:J>I\&\ "'it~A'l ,fei n(/D1'Y.,: j nh.,)'r-A'.r ~o~(,'''~ ~lJ"tJ(,.O,!~ tT.nfLtJ ,n1 (/D')"'p'.1' "")"'R' n;(li) uD(}'l'} fDl/.h"'I\m- :J-cD-~:&\:: tJ 'f:&\ h 1.l': m:""" Ii' "'6L"C C/Jit f.tJ '''If':~ "f(/D1"'P")- 11'(,..,.1/"1' m.l:" '''If'~ ":-rc rr.?!?;/Iilf:i?;" .,..nl\o fLm.,.it f.":J"."A :: ~. '}C:}°'L f:J>1\' "'111011 ..1\'" ~'C1'~ fDl/.!omm- ttA(f~ n it.,..,.C nlltJ '''If'~ OJ-it-r j li' "f(/D1"'P'~' 1P(,..,.~m O?I\~' nO?li:,:m-9u f(/D1 "'p'.1. (/DP't.r {1.'1'n*"7_~~' "''''-r~ f"7.IJ'.(,' om' OJf1 f(/D1"'P'.1' .,,'!):t1IJ.1 j f(/Dh"h! IP(,.~~' 'hli fTfLit "'I1A1 f.(;IJ.~('.A : ~. "f(/D1..,/P.1' (/DP't! {1..1'" O?I\~' 00-1\' (100'1\- OJ f.~ nh~.A n(/D1..,"..~. n:f.~' f"7."'.';f.C (/D P' t.f {1.'1'o.tf1 fADI/~1'y.:c~.r.~1'1 f.fD.9u(,.A : .t")~. CP;J 4.85 Unit Price CONTENTS Proclamation No. 345/2003 Public Servants' Pensions Proclamtion .....,.. .., Page 2209 PROCLAMATION No. 345/2003 PUBLIC SERVANTS' PENSIONS PROCLAMATION WHEREAS, it is found necessary to strengthen, to the extent circumstances allow, the public servants' pension scheme organized under existing laws; and to amend and consolidate the pension legislations; NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows; PART ONE General 1. Short Title This Proclamation may be cited as the "Public Servants' Pensions Proclamation No.345/2003." 2. Definitions In this Proclamation, unless the context otherwise reqmres: 1) "Public Servant" means a person permanently em- ployed in any public office, and includes a govern- ment appointee, member of the Defense Force and . the Police; 2) "Public Office" means an office wholly or partly run by government budget, and includes public enter- prises; . ~.~t.}. ;JILfI1 ;, ,.+.. ,!('j"'.?! Negarit G.P.O.Box 80,001

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Page 1: ~fJL -,,>rt-- Gazeta/Gazeta-1995/Proc No. 345-20… · federalnegarit gazeta ofthefederaldemocratic republicofethiopia "m~;;: ~ ... negarit g.p.o.box 80,001 'ix'!{ir.!{f( t"y..("a

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~Y-otr.A ~;Jt~ ;JtLfIJFEDERAL NEGARIT GAZETA

OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

"m~;;: ~(/D.1' ch-rC ~J~l;

"'.&tit "'n11 M~ li "") :w~n;

9th Year No. 65

ADDIS ABABA-8°' June, 2003nh..1.r'A'.f ~o~(,."q~ .&tqutJ(,.O..f~ tT.nfLtJ

f ,n't,.n .,.mtlr:.}'. 9°tJC (1.1' mI1~~'} fmll]

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CONTENTS

Proclamation No. 345/2003

Public Servants' Pensions

Proclamtion .....,.. .., Page 2209

PROCLAMATION No. 345/2003PUBLIC SERVANTS' PENSIONS PROCLAMATION

WHEREAS, it is found necessary to strengthen, to the extentcircumstances allow, the public servants' pension schemeorganized under existing laws; and to amend and consolidatethe pension legislations;

NOW, THEREFORE, in accordance with Article 55 (1) of theConstitution of the Federal Democratic Republic of Ethiopia,it is hereby proclaimed as follows;

PART ONEGeneral

1. Short Title

This Proclamation may be cited as the "Public Servants'Pensions Proclamation No.345/2003."

2. Definitions

In this Proclamation, unless the context otherwisereqmres:1) "Public Servant" means a person permanently em-

ployed in any public office, and includes a govern-ment appointee, member of the Defense Force and

.the Police;

2) "Public Office" means an office wholly or partly runby government budget, and includes public enter-prises; .

~.~t.}. ;JILfI1;, ,.+.. ,!('j"'.?!

Negarit G.P.O.Box 80,001

Page 2: ~fJL -,,>rt-- Gazeta/Gazeta-1995/Proc No. 345-20… · federalnegarit gazeta ofthefederaldemocratic republicofethiopia "m~;;: ~ ... negarit g.p.o.box 80,001 'ix'!{ir.!{f( t"y..("a

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3) "Public Organ" means public offices, and includes

Councils established at a Federal Government and

Regional States levels and City Administration;

4) "Government" includes the Federal Democratic

Republic of Ethiopia and the Regional States;

5) "Member of the Defense Force" means a person

permanently employed in Defense Force to render

military service;

6) "Member of the Police" means a person permanently

employed and render service under the Federal or

Regional States Police establishement legislations;

7) "Civil Service" means service rendered by public

servants other than members of the Defense Forces

and the police;8) "Military Service" means a service rendered hy

members of the Defense Force;

9) "Police Service" means a service rendered by mem-

bers of the police;

10) "Enterprise" includes public enterprises and enter-

prises in which the government's capital share is

not less than fifty percent (50%);

11) "Employer" means a public office or public organ

which pays salaries to public servants, or any organ

which pay salaries for persons whose period of

. service is counted under this Proclamation;

12) "Salary means monthly salary received by a public

servant, for services rendered during regular

working hours, without the deduction of any

amounts in respect of income tax or any other

matter;

13) "Benefit" means retirement pension, invalidity

pension, incapacity pension or survivors' pension

and includes gratuity and the refundable pension

contribution,

14) "Beneficiary" means a public servant or his

survivor who receives benefits or fulfils the con-

ditions for receiving benefits in accordance with

this Proclamation;

15) "Survivor" includes persons mentioned under Ar-

ticle 34(3) thereof,

16) "Authority" means Social Security Authority;

17/ "Pensions Funds" means public servant's Pension

Funds established for the purpose of Pension Funds

contributions being collected and effecting benefit

payments provided by this Proclamation.

3, Scope of Application

Without prejudice to the appropriate provision of the

Proclamation 270/2002 that provides pension coverage

to foreign nationals of Ethiopian origin, any international

and bilateral agreements to which the country is a party,

this Proclamation shall be applicable to public servants of

Ethiopi nationality.

Page 3: ~fJL -,,>rt-- Gazeta/Gazeta-1995/Proc No. 345-20… · federalnegarit gazeta ofthefederaldemocratic republicofethiopia "m~;;: ~ ... negarit g.p.o.box 80,001 'ix'!{ir.!{f( t"y..("a

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PART TWOPENSION FUNDS AND CONTRIBUTIONS

4. Pension Funds

The following Public Servants' Pension Funds arehereby established by this proclamation.I) Civil Service Fund.2) Military and Police Service Fund.

5. Civil Service Fund Contributions

The amount of the contribution payable to the CivilService Fund, based on the salary of the Public Servantshall be:I) by the employer six percent (6%),2) By the public servant four percent (4%),

6. Military and Police Fund Service Contributions

The amount of the contribution payable to the Militaryand Police Service Fund based on the Salary of themember of the Defense Force and the Police shall be:I) by the employer sixteen percent (16%).2) by the public servant four percent (4%).

7. Payment of Contributions1) Each Employer shall deduct the contribution due

upon each public servant's salary and shall pay theamount, together with the contribution due from theoffice as an employer, into the pension fund mon-thly;

.

2) Where the contribution due upon a public servant'ssalary is not deducted, the concerned employer shallbe responsible for payment of the same;

3) Any employer wh9 fails to pay the contribution tounder Sub Article (l) ofthis Article, until the last dayof each subsequent month, shat! pay monthly anamount of 2% on the un paid arrear contributions.

4),

The payment of contribution to Pension Funds haspriority over any payments of debts.

8. Administr<}tion of the Pension Funds

The Authority shall administer the Funds referred tounder Article 4 of this Proclamation.

9. Utilization of the Pension Funds

I) Without prejudice to Article 12(1) of the SocailSecurity Authority establishementProciamation No.38/1996, the Pension Funds shall be utilized only foreffecting benefit payments stipulated in thisProclamation and investment p\.lrpose.

2) The Pension Funds shall not be attached in respect ofany debt.

PART THREEPeriod of Service and Retirement A uel::

10. Commencement of Period of Service

1) The period of service of a public servant begins withthe date of his appointment or assignment as a publicservant.

2) The period of service of a public servant working inan entrprise transferred to the government ownershipshall begin to count as of the date of such transfer.However, the service of employees of such enter-prise which has a pension scbeme or a provident fundthat can balanc,e due amount o( pension contribution

. shall be couqted, provided tliat the accumulated fundis wholly transferred to thePublicServants'PensionFunds.

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F,'d''l'al Ncg.lrit {,azL'ta - No, (IS x~' June, 2003-Page 2212

I) Period of service of a puhlic servant shall he

calculated in complete years. months and days;2) Periods of service rendered hy anypuhlic servant in

different puhlic offices shall he counted up;3) Period of service of a memher of the Defence Force

or a Police temporary rendered in a duty other thanhis regular service upon a government order shall hetreated as military or police service;

4) For any puhlic servant the following shall also hecounted as period of service;(a) the period of service heyond retirement age

lawfully retained;(h) the period of service spent after reinstatement

upon a government decision subsequent toretirement due to age;

(c) the period of service which was interruptedwithout interruption of payment of salary;

(d) the period of service spent in any public organby election with regular salary as People'sRepresentative on full time basis;

(e) the period of service rendered temporarywithout interruption in a government office ifsubsequently employed permanently in thesame office;

(t) The period of Service rendered in a privatizedpublic enterprise having been transferredalong with the enterprise;

(g) The period of service spent upon a govern-

ment order in international organizations orenterprises where the government capitalshare is less than fifty per cent (50%).

5) For any public servant the following shall not becounted as period of service;(a) unless lawfully retained. the service he renders

as of the first day of the month following thatin which he attains retirement age;

(b) without prejudice to any international agr-eement to which Ethiopia is a party. service ren-dered in any public office by a public servant ofEthiopian nationality by naturalization, prior tosuch naturalization.

6) Period of service referred to under Sub-Article 4 (d)to (g) of this Article shall be counted as period ofservice only where the public servant pays thecontribution due from him and the employer on hisown or made the employer pay the same based onthe salary paid to him prior to the interruption of hisservice,

7) Where a public servant who has received gratuity orto whom reimbursement of pension contributionwas made pursant to this Proclamation is employedor assigned as a public servant. his former serviceshall be counted along with the new, provided thatthe gratuity or the reimbursed ,contribution is paidback with bank interest.

8) On the basis of studies submitted to it by theAuthority, the Council of Ministers may decide thatperiod of service spent on hazardpus jobs or on jobsinvolving risk to health and life be counted, as thecase may be, upton twice the actual period ofserVice.

Page 5: ~fJL -,,>rt-- Gazeta/Gazeta-1995/Proc No. 345-20… · federalnegarit gazeta ofthefederaldemocratic republicofethiopia "m~;;: ~ ... negarit g.p.o.box 80,001 'ix'!{ir.!{f( t"y..("a

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"'IA"'t\"'} :

h' fouhl\h.r IPt.~.} eDf--9Uf?t\.l1 "IIA I\AIr" fou'}

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12. Retirement Age

1) The retirement age of public servants shall be asfollows:(a) for members of Defence Force at the age

which shall be determined by the appropriateprovisions of Defence Force establishmentProclamation.

(b) for the members of the Police at the age whichshall be determined by the appropriateprovisions of Police establishment leg-islations.

(c) for all other public servants sixty (60) years.2) On the basis of studies submitted to it by the

Authority the Council of Minister may determinehigher retirement age for profficianal fields whichmay need special consideration than the providedunder Sub-Article (1) of this Article..

3) On the basis of studies submitted to it by theAuthority, the Council of Ministers may decideearlier retirement age than the provided under Sub-Article (1) of this Article in the case of publicservants working on hazardous jobs involving riskto health and life.

PART FOURRetirement Pension and Grtuity

13. Retirement Pension1) A public servant who has completed at least ten (10)

years of service, and retires upon attainingretirement age, shall receive retirement pension forlife.

2) A public servant who has completed at least twenty(20) years of service and separates from the serivceby voluntary resignation or for any other causesother than those provided in this Proclamation shallreceive retirement pension for life upon attainingretirement age.

3) A public servant other than member of the DefenseForce who resigns after completing at least twentyfive (25) years of service shall receive retirementpension for life beginning with five years prior toretirement age.

4) A member of Defence Force who resigns aftercompleting at least twenty five (25) years of serviceshall receive retirement pension for life beginningwith three (3) years prior to retirement age.

5) Where it is ascertained that a public servant who hasseparated from service in accordance with SubArticle (2) through (4) of this- Article becomesincapable of fulfilling the medical conditions ofservice due to failure in health prior to attainingretirement age, he shall receive invalidity pensionfor life as of the month following such ascertain-ment; in case he dies, his surviours shall be paidbenefits as of the month following such death.

14. Amount of Retirement Pension

The retirement pension due to any civil servant shallamount to thirty percent 00%) of the average salary forthe last three years preceding retirement, increased foreach year of service beyond ten (10) years;1) For a public servant other than member of the

Defense Force or Police by one point one two fiveper cent (1.125%);

2) For a member of the Defense Force or Police by onepoint five per cent (1.5%).However; the retirement pension to be paid pursuantto Sub-Article (1) and (2) of this Article shall notexceed seventy percent 00%).

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15. Retirement Gratuity

A public servant who has not completed ten (10) years ofservice and retires on attaining retirement age shallreceive gratuity.

16. Amount of Gratuity

The gratuity payable in accordance with Articel15 of thisProclamation shall be;1) For a public servant other than member of the

Defense Force or Police the salary of the monthpreceding retirement multiplied by the number ofyears of service;

2) For a member of the Defence Force, or Police thesalary of one and one-half month precedingretirement multiplied by the number of years ofservtce.

PART FIVEInvalidity Pension and Gratuity

17. Invalidity Pension

1) A public servant who has completed at least ten (10)ye;Jrs of service and is retired because he dose not

fulfill the medical condition of service shall receiveinvalidity pension for life.

2) If a beneficiary who is receiving invalidity pensionengages in any gainful activity anq begins gettingsalary the pension shall be discontinued.

/

18. Amount of Invalidity Pension

The invalidity pension payable by this Proclamation shallbe calculated as provided under Article 14 thereof,

19. Invalidity GratuityA public servant who has not completed ten (10) years ofservice and retires because he does not fulfil the medicalcondition shall receive invalidity gratuity"

20. Amount of Invalidity GratuityThe gratuity payable in accordance with Article 19 of thisProclamation shall be calculated as provided underArticle 16 thereof.

21. Reimbursement of Contribution

A public servant:1) Who separates from work due to resignation after

completing ten (10) years, but prior to completingtwenty (20) years of service, or

2) Who separates from work for any other cause otherthan specified by this Proclamation prior to twenty(20) years of service.Shall be paid an amaunt equal to the total fourpercent (4%) contribution there fore mode by him.

3) Who separates from work due to resignation prior tocompleting ten (10) years service shall be entitled tono benefit.

PART SIXEmployment Injury and the Payment

of benefit

"OP't- It.e fD'/,f..Cit "~T" D?ltT OP't- It.e 22. Definitions

fD'/.f..Cit ~f..;J hCj OP't- 9"h1''''' fD?ooll} n7i:J- 1) "Employment Injury" means employment accident~(JJc:: and occupational disease;

ji-

Page 7: ~fJL -,,>rt-- Gazeta/Gazeta-1995/Proc No. 345-20… · federalnegarit gazeta ofthefederaldemocratic republicofethiopia "m~;;: ~ ... negarit g.p.o.box 80,001 'ix'!{ir.!{f( t"y..("a

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"Employment Accident" means any organic injuryor functional disorder suddenly sustained by apublic servant during or in connection with theperformance of his work, and shall include thefollowing:(a) injury sustained by a public servant outside of .

his regular work, or outside of his regularworking place or hours, while carrying out

orders by a competent authority;(b) injury sustained by a public servant during or

outside of working hours while attempting tosave his work place from destruction ofimminent danger, though without order by acompetnet authority;

(C) injury sustained by a public servant while he is

proceeding to or from his place of work in a

transport service vehicle provided by theoffice which is available for the common useof its employees or in a vehicle hired and

.expressly destined by the office for the samepurpose.

(d) any injury sustained by a public servant before

or after his work or during any interruption ofwork, if he is present in the work place or the

premises of the undertaking by re'ason of hisduties in connection with this work,

(e) any injury sustained by a public servant as a

result of an action of the employer or a thridperson during the performance of his work.

"Occupational Disease" means any pathologicalcondition of a public servant which arises, as aconsequence of the kind of work he performs or

because of the surrounding in which he works, beingexposed to the agent that cause the disease for acertain priod prior to the date in which the diseasebecame evident; provided, however, that it does notinclude endemic or epidemic disease which areprevalent and contracted in the area where the workis done."Regular Work" means a work performed by apublic servant pursuant to his'''responsibilities orcontract of employment.

"Regular Place of Work" means a place where apublic servant regularly performs his duties.

23. Self Inflicted Injury

The provisions of Article 22 of this Proclamation shallapply only where the public servant has not inflicted theinjury upon himeslf intentionally; any injury resulting

from the following acts in particular shall be deemed to

be intentionally caused by the public servant.1) non-obedience of expressed safety instruction of

non-observance of the provisions of accidentpreventive rules specially issued by the employer,

2) reporting to work in a state of intoxication that

prevents him from properly regulating his conduct

or understanding.

3)

4)

5)

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24. Occupational Disease and Extent of Incapacity Schedule

The Authority, in consultation with the appropriateorgan, shall by directives issue a schedule which list,1) The degree of incapacity,2) Regarding each occupational disease indicating;

(a) the symptoms,(b) the kind of work or surrounding that gives

rirse to the disease,(c) the minimum of exposure & the agent causing

the diesease.The schedule shall be revised wherever it may

be deemed necessary,

25. Presumption

1) Where a disease listed in the schedule in connection

with a work place or with a kind of work is

contracted by a public servant in a correspondingsituation, it shall be presumed an occupational

disease.2) Where a public servant who had recovered from an

occupational disease is reinfected due to continuedplacement in the occupation corresponding to the

disease listed in the schedule, he shall be presumedto have contracted another occupational disease.

3) Notwithstanding the provisions of Article 22 (3) of

this Proclamation where a public servant engaged in

the eradication of endemic or epidemic diseasecontracts same, it shall be presumed an occupationaldisease.

26. Admissibility of Proof

Proof may be permitted to the effect that a disease not

listed in the schedule issued under Article 24 here inabove could be of occupational origin, and that diseaseslisted in the schedule are manifested in a differentsymptom than that indicated therein.

27. Notification of Accident

Where a public servant other than member of the Defense

Force sustains occupational injury the employer shallnotify in writing the same with in thirty (30) days of the

occurrence of such accident to the Authority.

28. Assessment of Employment Injury

1) The extent of employment injury sustained by a

public servant shall be assessed by authorized

medical board in accordance with the schedule to be

issued pursuant to Article 24 of this Proclamaiton.2) The Medical Board shall assess the extent of

employment injury based on the directives to be

issued by the Authority.3) When it deems necessary, the Authority can refer the

assessment to another medical board for furtherevaluation,

29, Incapacity Benefit

Incapacity pension for life or incapacity gratuity shall bepaid as the case may be, for injury sustained fromemployment.

Page 9: ~fJL -,,>rt-- Gazeta/Gazeta-1995/Proc No. 345-20… · federalnegarit gazeta ofthefederaldemocratic republicofethiopia "m~;;: ~ ... negarit g.p.o.box 80,001 'ix'!{ir.!{f( t"y..("a

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30. Incapacity Pension1) A public servant who sustains employment injury of

not less than ten percent (1OCff)and separates fromwork due to absolute incapacitation shall receive anincapacity pesnion for life.

2) If a beneficiary who is receiving incapacity pensionengages in any gainful activity and begins gettingsalary, the pension shall be discontinued.

31. Amount ofIncapacity Pension1) In accordance with this Proclamation a publ ic

servant who sustains empIl)yment injury shallreceive an incapacity pension for life amounting toforty five percent (4srk) of his basic monthly salarywhich he was receiving during the month prior to theoccurence of the injury.

2) If the incapacity pension mentioned under Sub-AI1icle ( 1) is less than that or equal to the retirementpension to which the beneficiary is entitled, he shallreceive the retirement pension.

32. Incapacity Gratuity

A public servant who sustains employment injury of notless than ten percent (lOlfr) without loss of capacity towork shall receive incapacity gratuity in the form of alump sum. However, no gratuity shall be paid if theincapacity is assessed at less than ten percent (l O(k)

33. Amount ofIncapacity Gratuity

The amount of incapacity gratuity payable in acconlancewith the provisions of Article 32 here in above shall beequal to forty five percent (451ff) of the basic monthlysalary which he was receiving during the monthpreceding the occurrence of the injury times five yearssalary times the amount of percentage of injury sustained.

PART SEVENSurvivors' Pension and Gratuity

34. General1) If any public servant:-

(a) who is entitled to retirement or invalidity orincapacity pension, or

(b) who has completed at least ten (l0) years orservice, but not separated from the service. or

(c) who sustained employment injurydies a pension shall he paid to his survivors.

2) If a public servant who has not completed ten (10)years of service dies before he separates from theservice, the surviors mentioned in Sub-Article 3 (a)and (b) of this Article shall receive gratuity.

3) The following shall be considered as survivors:(a) a widow or widower,(b) children of the deceased who are under eighteen

( 18) years of age,(c) parents who were wholly or mainly supportcJ

by the deceased.

Widow's or Wicjower's Pension35.1) The amount of pension payable to a widow or

widower shall be fifty per cent (50';( ) of the pensionto which the deceased was or woulJ have hecnentitled.

2) widow's or widower's pension shall be discontinucdfrom the beginning of the month followingremamage.

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36. Orphan's Pension

1) The amount of pension payable to each survivingchi Id shall be twenty per cent (20%) of the pension towhich the deceased was or would have been entitled.

2) If both parents are dead, the amount of pensionpayable to each surviving child in accordance withSub-Article (1) of this Article shall be thirty per cent(30% ).

3) If both parents of an orphan who were or would havebeen entitled to a pension are dead, he shall receivetwenty per cent (20%) of each of their pension.Provided. however. that the amount of pensionpayable in accordance with this Sub-Article shallnot be less than the amount payable in accordancewith Sub-Article (2) of this Article.

37. Parent's Pension

The amount of pension payable to each parent shall befifteen per cent (15%) of the pension to which thedeceased was or would have been entitled. If there are noother survivors the amount shall be twenty percent (20Cff )

38. SurvivoJ:';' Gratuity

The amount of gratuity payable to any survivor shall bethe amount of gratuity to which the deceased would havebeen entitled and shall be calculated in accordance withthe percentage specified in Article 35( 1) or 36 of thisProclamation.

39. Limit of Sur vivo/:,( Pension

1) If the total benefits payable to survivors, in accor-dance with Article 35 through 38 of thisProclamation is in excess of hundred percent (100(,1)of the benefit to which the deceased was or wouldhave been entitled, each survivor's share shall beproportionately reduced until the total comes downto hundred percent ( 100%) .

2) Upon reduction in the number of survivors sub-sequent to adjustment under Sub-Article ( I) of thisArticle, further adjustment of the amount of benefitsshall be made.

PART EIGHTGeneral Provisions Relating to Benefits

40. Minimum Amount of Pension and Pension Adjustment

On the basis of studies submitted to it by the Authority,the Council of Ministers may adjust pension benefitevery five years.

41. Mode and Period of Payment of Pension

I) Pension shall be effected monthly.2) Payment of retirement pension shall begin as of the

month following that in which the public servantretires.

3) Payment of invalidity pension shall begin as of themonth following that in which the invaliditv of thepublic servant ascertains.

4) Payment of incapacity pension shall begin as of themonth following that in which the permanent totalincapacity sustained by the public servant ascertains.

'i) Payment of survivors' pension shall begin as of themonth following that in which the beneficiary dies.

Page 11: ~fJL -,,>rt-- Gazeta/Gazeta-1995/Proc No. 345-20… · federalnegarit gazeta ofthefederaldemocratic republicofethiopia "m~;;: ~ ... negarit g.p.o.box 80,001 'ix'!{ir.!{f( t"y..("a

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42. Mode and Period of Payment of Gratuity

1) Any gratuity is effected in lump sum at once.2) Retirement or invalidity gratuity shall be payable

beginning with the first day of the month followingthat in which the public servant separates from theserVice.

3) Incapacity gratuity shall be payable beginning withthe first day of the month following that in which tl1einjury sustained by the public servant ascertains.

43. Period of Limitation

1) Any claim for payment of arrears of pension shall bebarred by limitation after one (l) year.

2) Any claim for payment of gratuity shall be barred bylimitation after two (2) years.

3) A claim for reimbursement of pension contributionshall be barred by limitation two years after the datein which the public servant attains retirement age ordies.

4) The period of limitation shall begin to run from theday following that in which the right may beexercised.

5) The period of limitation shall not include thefollowing:-(a) period lapsed due to a court process started to

establish right,(b) period lapsed due to non fulfillment by the

employer its obligation to submit evidentiarydocuments on time,

(c) periods necessary for the decision of benefitentitlement by the Authority.

44. Entitlement of Benefits not Transferable

The right to receive benefits shall not be pledged or cannot be transferred by inheritance or any other means.

45. Attachment of Benefits

Benefits payable in accordance with this Proclamationshall not be attached for any debts unless ordered by acourt in respect of:1) Public fines, public fees or taxes; or2) Fulfillment of the obligation to supply maintenance

in accordance with relevant Civil Code provisions.

PART NINEMiscellaneour Provisions

46. Relationship Between Entitlements

1) If a public servant who receives retirement pensionre-enters the public service and receives salary, thepension shall be discontinued;

2) If a pensioner is re-employed permanently in apublic office, the service shall be added and countedwith previous service for the purpose of benefitentitlement. However, if the new benefit is less thanthe former benefit the pensioner shall have the rightto get the previous benefit;

3) If a beneficiary is entitled to more than one benefit,the amount of benefit to be paid shall be decided bythe authority;

4) Without prejudice to Article 10(2) of thisProclamation, a retired employee of nationalizedenterprise who is receiving monthly benefit on thedate of such nationalization shall continue to get theamount of pension. benefit adjusted to the ap-propriate provision of this Proclamation.

Page 12: ~fJL -,,>rt-- Gazeta/Gazeta-1995/Proc No. 345-20… · federalnegarit gazeta ofthefederaldemocratic republicofethiopia "m~;;: ~ ... negarit g.p.o.box 80,001 'ix'!{ir.!{f( t"y..("a

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47. Obligation of Employers

1) Any employer shall collect, compile and submit tothe Authority evidentiary documents relating to

employees which are necessary for the implemen-

tation of this Proclamation in accordance with the

form and within the time decided by the Authority;2) for the purpose of implementing this Proclamation,

any government office mass or private organization

or individual shall furnish information or written

evidence or appear and testify or give his opinion

when so requested by the Authority.

48. Decision of the Authority

1) The fulfillment of conditions for entitlement to any

kind of benefit payable in accordance with this

Proclamation and the amount of the benefit shall be

decided by the Authority;2) The decision of the Authority regarding those

specified in Sub-Article (1) of this Article shall be

based on its own record, evidentiary document

submitted to it in accordance with Article 47 of this

Proclamation and, as the case may be, on additional

evidences produced by the beneficiary;3) When difference occurs between the records of the

Authority and documents provided by other organs,

the evidentiary document to be accepted shall be

decided by the Authority.

49. Review of Decisions

1) The Authority may review its previous decision

upon request by an aggrieved beneficiary or on its

own initiative;2) Where upon review the Authority finds that there is

reasonable ground for cancellation or deduction of

benefits, it may suspend payment to the extent the

benefit is to be cancelled or deducted;

3) Notwithstanding the provisions of Article 45 of this

Proclamation, upon decision of deduction of any

benefit payment contrary to this Proclamation the

Authority shall deduct the amount paid thereof

illegally from the benefit of the pensioner and

transfer it to the funds.

50. Appeal

Any public servant or survivor who is aggrieved by the

decision of the Authority made pursuant to Article 48 or

49 of this Proclamation, shall have a right to lodge an

appeal to the Social Security Appeal Tribunal established

in accordance with Article 11 of the Social Security

Authority Establishment Proclamation No. 38/1996.

51. Tax Exemption

Not tax shall be payable on benefits received, pension

contribution collected and profit from investment of

ension fund in accordance with this Proclamation.

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52. TransitOlY Provisions

I) Previous laws and directives shall remain applicable

to legal situations created before the coming intoforce of this Proclamation;

2) Notwithstanding the provisions of Sub-Arti\,:le (1) of

this Article. a public servant lawfully retained in

service beyond retirement age before the coming

into force of this Proclamation shall have a right to

remain in service until he attains the retirement age

set forth in this Proclamation;

3/ Until the Authority issues the schedule determining

the degree of in~apacity specified in Article 24 thepractices followed by the medical hoards shall

remain applicable.

53. Power to Issue Regulations and Directives

1) The Council of Ministers may issue regulations

necessary for the implementation of this

Proclamation;2) The Authority may issue directives necessary for the

implementation of this Proclamation and regulations

issued pursuant to Sub-Article (1) of this Article.

54. Penalty

Who ever violates the provisions of this Proclamation or

regulations and directives issued pursuant to this

Proclamation shall be punished in accordance with theappropriate Penal Law provisions.

55. Repealed and Inapplicable Laws

1) The following are hereby repealed:-(a) Public Servants' Pensions Proclamation

No. 209/1963 (as amended);(b) Public Servants' Pension Contribution

Proclamation No. 199/1963 (as amended);(c) Employees of Government Owned Under-

takings Pension Proclamation No. 49/1975;

2) No law and directives shall. in so far as it is inconsist

with this Proclamation, have force and effect in

respect of matters provided for in this Proclamation.

56. Effective Date

This Proclamation shall enter into force as of 8thday of

June. 2003.

Done at Addis Ababa, this 8''' day of June, 2003.

GIRMA WOLDE GIORGI.r;PRESIDENT OF THE FEDERAL

DEMOCRA TIC REPUBLIC OF ETHIOPIA

1/C'/'H' MSI" "'/'1."1..1' ,f.'(.:'t.:'1. :}"I'OI'BERHANENA SELAM PRINTING ENTERPRISE