The International Labour Organization, the Ethiopian Horticulture Producer Exporters Association and tripartite partners have advanced efforts to establish a standardized wage framework for Ethiopia’s horticulture sector. The move follows the validation of an assessment on cluster-based wage systems during a workshop held in Addis Ababa.
The workshop brought together farm managers, worker representatives, regional authorities, national institutions and tripartite partners to review findings, identify remaining gaps and discuss practical steps for improving wage systems. Participants emphasized that transparent, predictable and well-governed wages can strengthen decent work, support responsible business practices and improve the competitiveness of Ethiopia’s horticulture industry.
Ethiopia’s horticulture sector is one of the country’s leading export industries and a major source of formal wage employment, particularly for women. As the sector expands, improving worker incomes while maintaining enterprise sustainability has become an important priority for employers, workers and government institutions.
The assessment reviewed wage structures across the sector, including base pay, allowances, in-kind benefits, wage payment systems and differences across regions, contract types and gender. It also identified opportunities to improve transparency and efficiency, including the wider use of digital wage payments.
The discussions are expected to guide the development of a standardized wage framework that reflects sector realities, includes worker perspectives and supports sustainable business operations. Stakeholders also reviewed the feasibility of recommendations and agreed on priorities related to wage standardization, social dialogue and stronger wage governance.
The cluster-based wage approach was initiated through negotiations between farm management and trade unions, with EHPEA playing a leading role. The approach aims to create a fair, structured and transparent wage-setting mechanism that responds to the operational realities of Ethiopia’s horticulture sector.
The final assessment report will support the development of the wage framework and help strengthen wage-setting practices across the industry. The framework is expected to promote improved transparency, better industrial relations and more sustainable outcomes for both workers and enterprises.
The initiative forms part of the ILO’s broader support to strengthen wage-setting systems in Ethiopia’s agriculture sector. Through the Setting Adequate Wages in Agriculture project and the ILO Global Centre on Digital Wages for Decent Work, the ILO is promoting decent work, evidence-based social dialogue, responsible digital wage payments and sustainable enterprises.
