Fair Wages and Decent Work

ILO launches project to advance living wages and income in Ethiopia’s agriculture sector

Ethiopia takes reaffirmed commitment to fair wages and decent work in agriculture.

24 February 2025

Addis Ababa (ILO News) – The International Labour Organization (ILO), with the support of the German Federal Ministry for Economic Cooperation and Development (BMZ), has officially launched the Setting Adequate Wages in Agriculture (SAW-A) Project in Ethiopia. This initiative aims to promote fair wage policies, enhance collective bargaining, and support the establishment of minimum wage mechanisms, ensuring better livelihoods for workers in the agricultural sector.

The launch event, held in Addis Ababa, brought together government representatives, employers’ and workers’ organizations, development partners, and key stakeholders committed to improving working conditions in agriculture—Ethiopia’s largest employment sector, accounting for over 80 percent of the workforce. The project is part of a larger global effort to ensure fair wages and sustainable incomes, particularly in industries like coffee and horticulture, which are vital to Ethiopia’s economy.

A Commitment to Social Justice and Decent Work

In his opening remarks, Khumbula Ndaba, ILO Country Director for Ethiopia, Djibouti, Somalia, Sudan, and South Sudan, emphasized the urgency of addressing wage disparities in Ethiopia’s agriculture sector. He noted that agriculture is the backbone of Ethiopia’s economy, yet many workers continue to face low wages, informal employment, and limited social protection. He underscored that fair wages are not just about income but also about dignity, equality, and sustainable development.

“Social justice is not just a principle—it is a promise. Fair wages and decent work ensure that no one is left behind in the pursuit of economic progress,” he stated.

Ethiopia remains one of the few African countries without a national minimum wage, leaving agricultural workers vulnerable to low pay and poor working conditions. The SAW-A project seeks to address these challenges by supporting the establishment of statutory minimum wages based on reliable data on workers’ needs and economic factors. The project will also strengthen collective bargaining mechanisms to ensure fair compensation, improve compliance with international labour standards, and align with the European Union’s Corporate Sustainability Due Diligence Directive (CS3D).

SAW-A will also help Ethiopia’s agricultural sector meet global supply chain due diligence requirements, ensuring that farms and agribusinesses can continue to export to key international markets while upholding fair wage practices.

Strengthening Wage-Setting Mechanisms

Speaking at the launch, Guillaume Delautre, SAW-A Project Manager, highlighted the significance of the initiative, stating, “Fair wages are not just a moral imperative but an economic necessity. By ensuring that agricultural workers receive wages that reflect both their needs and economic realities, Ethiopia can create a more resilient and productive agricultural sector.”

Dr. Tekalign Ayalew, CEO of Labour Affairs  at the Minister of Labour and Skills, stressed the need to strengthen tripartite partnerships to realize fair wages not only in the agricultural sector but across other industries as well. “A sustainable wage policy requires the collaboration of government, employers, and trade unions. Strengthening these partnerships will ensure that fair wages are implemented across all sectors, improving the livelihoods of workers nationwide,” he said.

The project will focus on three core outcomes: ensuring minimum wage is set based on economic and social indicators, equipping social partners with the necessary information to engage in collective bargaining, and improving compliance with wage policies. It also seeks to explore the concept of living wages and living incomes, particularly for smallholder farmers and self-employed workers.

During the event, employer and trade union representatives expressed their appreciation and support for the implementation of the project and the realization of a statutory minimum wage in Ethiopia. They emphasized that establishing fair wages is essential for economic stability and social justice, reaffirming their commitment to working together to achieve these goals.

Looking Ahead

The launch of SAW-A marks the beginning of a transformative journey toward fair wages and social justice in Ethiopia’s agriculture sector. The project has been working closely with stakeholders to conduct research, data analysis, and capacity-building activities, ensuring that wage-setting mechanisms are fair, sustainable, and evidence-based.

ILO remains committed to working with all partners to ensure that the fruits of economic progress are distributed equitably, leaving no one behind.

About the SAW-A Project

The Setting Adequate Wages in Agriculture (SAW-A) Project is a four-year initiative (2024–2028) funded by the German Federal Ministry for Economic Cooperation and Development (BMZ). Implemented in Ethiopia, Colombia, and Côte d’Ivoire, the project supports fair wage-setting mechanisms, strengthens collective bargaining, and promotes living wages and income in agricultural supply chains. SAW-A aligns with global labour standards and due diligence requirements to improve working conditions and economic sustainability.