Addis Ababa Imposes Unprecedented Payroll and Institutional Deductions for Emergency Fund

By Mintesinot Nigussie
Published on 02/17/26

The Addis Ababa City Administration has introduced a regulation to collect contributions for its Emergency Response Fund through structured payroll and institutional deductions, according to Sheger Radio. Government employees and pensioners will have 0.5 percent of their monthly salaries deducted to support rapid responses to natural and human-made disasters.

The regulation also sets annual contributions from various organisations. Religious institutions are required to pay 12 000 birr, civil society organisations 5,000 birr per year, and residents an additional five birr monthly, integrated with their water bills. Commercial taxpayers contribute on a graded scale: 200 birr per month for grade “A”, 100 birr for grade “B”, and 50 birr for grade “C” taxpayers. The fund will also receive 0.1 percent from fixed asset sales and purchases.

The fund is designed to finance emergency preparedness and response, including immediate disaster mitigation, humanitarian aid, recovery planning, and maintaining readiness capacities. Annual contributions from the city’s budget, development agencies, and other sources are detailed, with 1 percent of the budget office allocations, 0.5 percent of government salaries, and 2 percent from the City Administration’s development budget allocated to the fund.

The directive was approved last year, and became operational on February 8, 2026, initially applying only to salary deductions. Revenue collection is set to expand through services provided by banks, development agencies, insurance companies, Ethiotelecom, fuel suppliers, trade licensing, customs, passport, and visa fees.