Key Facts: Eritrea vs Ethiopia Wages
- Eritrea Minimum Wage
- Nfk600/mo ($40 USD)
- Ethiopia Minimum Wage
- ETB7.50/hr ($0.06 USD)
- Eritrea Avg. Gross Monthly Salary
- Nfk6,000 /mo ($400 USD)
- Ethiopia Avg. Gross Monthly Salary
- ETB6,500 /mo ($50.78 USD)
- Data Sources
- ILO ILOSTAT / World Bank / OHCHR Eritrea reports (2026-02-25), Ministry of Labour and Social Affairs / ILO (2026-02-24)
Eritrea
Ethiopia
Updated 2026-02-25
The minimum wage in Eritrea is roughly 683 times higher than in Ethiopia in USD terms, reflecting the gap between a low-income and a low-income economy. Average gross salaries diverge further: $400/mo in Eritrea versus $51/mo in Ethiopia, a 7.9:1 ratio. Ethiopia has the tighter labor market, with unemployment at 3.3% compared to 6.0%.
Eritrea's unemployment rate is 6.0% compared to Ethiopia's 3.3%.
Detailed Comparison
| Metric | Eritrea | Ethiopia |
|---|---|---|
| Minimum wage /hr | — | ETB7.50 $0.06 |
| Minimum wage /day | — | ETB43.33 $0.34 |
| Minimum wage /mo | Nfk600 $40 | ETB1,300 $10.16 |
| Minimum wage /yr | — | ETB15,600 $121.88 |
| Avg. gross salary /mo | Nfk6,000 /mo $400 | ETB6,500 /mo $50.78 |
| Avg. net salary /mo | Nfk5,400 /mo $360 | ETB5,600 /mo $43.75 |
Percentage differences are based on USD equivalent values. Positive means Eritrea is higher.
Work Week
- Eritrea
-
44 hrs/wk standard
Labour Law sets 44 hours/week for civilian workers (8 hours/day, 5.5 days). However, the national service program operates under military regulations outside normal labour law. No reliable enforcement or monitoring data is available.
- Ethiopia
-
48 hrs/wk standard
Max 48 hrs/wk
Overtime : 1.25x pay
Labour Proclamation No. 1156/2019 sets maximum ordinary working hours at 8 hours/day, 48 hours/week. Overtime: 125% for first 2 hours, 150% for additional hours, 200% for weekends, 250% for public holidays. Night work (10pm-6am) carries a 50% premium. These regulations apply to formal employment relationships only.
What This Means for Workers
A minimum wage worker moving from Ethiopia to Eritrea would see a 68167% increase in USD-equivalent hourly earnings. Standard work weeks differ: Eritrea mandates 44 hours while Ethiopia mandates 48 hours. A minimum wage worker's weekly earnings in Eritrea are $1,760 vs $3 in Ethiopia.
See this comparison from Ethiopia's perspective: Ethiopia vs Eritrea
Compare Eritrea with...
Frequently Asked Questions
Is the minimum wage higher in Eritrea or Ethiopia?
In Eritrea, the minimum wage is Nfk600/mo ($40 USD). In Ethiopia, it is ETB7.50/hr ($0.06 USD). Eritrea has the higher rate by 68167% in USD terms. That nominal gap does not account for local prices; see the purchasing power comparison below for a cost-of-living-adjusted view. Workers in Ethiopia may retain a larger share of their earnings if prices there are lower.
How much more does the average worker earn in Eritrea compared to Ethiopia?
The average gross salary in Eritrea is Nfk6,000/mo ($400 USD), compared to ETB6,500/mo ($50.78 USD) in Ethiopia. In USD terms, workers in Eritrea earn approximately 688% more. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Eritrea and Ethiopia is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Eritrea earn more in nominal terms, though how far that income stretches depends on local prices in Ethiopia.
How do work hours compare between Eritrea and Ethiopia?
Ethiopia has a longer standard work week at 48 hours, compared to 44 hours in Eritrea. Workers in Eritrea work 44 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Eritrea working fewer hours may have comparable or better effective hourly earnings depending on the wage levels of each country. Total annual compensation depends on both the wage rate and the number of hours required.