Tools
What a salary comes to after tax
Enter the monthly basic and allowances. The page shows the income tax by bracket, the pension deduction and what reaches the bank.
Start from
0.00birr per month
Enter a salary to see the deductions.
How the deductions work
Employment income tax is charged on the month's gross pay in slices: the first 2,000 birr at nothing, then 15% up to 4,000, 20% up to 7,000, 25% up to 10,000, 30% up to 14,000 and 35% above that. Those are the rates of the Income Tax Amendment Proclamation No. 1395/2025, in force since Hamle 2017 E.C.
Pension is 7% of the basic salary from the employee and 11% from the employer. It is charged on the basic only, while tax is charged on basic and allowances together.
The net-to-gross mode answers the other question: what basic salary has to be offered so that a given amount lands in the account.
- Are allowances taxed?
- On this page, yes: transport, housing and other allowances are added to the basic and taxed with it, which is how the platform's payroll treats them. Exemptions an employer applies under its own rules are not modelled.
- Is the pension deduction optional?
- For most employers it is compulsory under the pension law, at 7% from the employee and 11% from the employer. The switch is for those outside the scheme, so the figures still match their payslip.
- Why does my payslip show a different net?
- Payslips carry lines this page does not: loan repayments, union dues, unpaid days, overtime. The tax and pension figures should match. The rest is the employer's own lines.
- Is this the new tax law?
- Yes. The brackets are those of Proclamation 1395/2025, which raised the untaxed slice to 2,000 birr a month from Hamle 2017 E.C.
Payroll for a whole school
Temari runs payroll for every position at a school with these same rules, freezes each run when it is approved, and prints the payslips.
See HR and payroll