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Ethiopia

Call for Universal Pension Scheme for All Citizens Reaching Retirement Age

BS Bethelhem Solomon Jun 26, 2026 Updated 3h ago 2 min read 371 views 0 comments
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Call for Universal Pension Scheme for All Citizens Reaching Retirement Age

Association Proposes Levying High-Net-Worth Taxpayers to Fund Universal Pension

The Ethiopian Elderly and Pensioners National Association has formally requested that the government extend pension coverage to all citizens who have reached retirement age, regardless of their previous employment status.


The Association argues that the current pension framework, which is largely restricted to formal sector employees, leaves behind a vast majority of the elderly population including those who worked in the informal sector or other fields. Labeling the existing system as inequitable, the Association insists that every citizen who has contributed to the nation deserves a state-supported retirement in their twilight years.


To finance this expanded social safety net, the Association has proposed a new funding model that would draw revenue from the country's high-net-worth taxpayers. The group contends that this infusion of funds is essential to providing a consistent income stream for currently uncovered seniors and mitigating the severe economic hardships they face.


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Ato Getachew Gebru, Deputy Board President of the Association, confirmed that a detailed implementation proposal has already been submitted to the Public Servants Social Security Agency and the Ministry of Women and Social Affairs. Every citizen, regardless of their field of work, has served this country and deserves to be honored and supported in their old age.


The Association’s push for systemic reform is rooted in the erosion of Ethiopia’s traditional family support systems. Ato Getachew noted that rising living costs and economic instability have made it increasingly difficult for younger generations to care for their parents, leaving many elderly individuals living in isolation with little to no financial support.

As the government reviews the proposal, the Association’s appeal highlights the urgent need to address the shifting social dynamics and the escalating economic vulnerability of the elderly. Whether the government will adopt this comprehensive approach remains a point of significant public interest.

In a related development, the Association has also signaled its support for recent initiatives by the Public Servants Social Security Agency to leverage real estate assets for pensioner welfare. The agency has completed the construction of eight commercial buildings four in Addis Ababa and one each in Bahir Dar, Jimma, Harar, and Hawassa with the stated intention of allocating the rental income to support retired citizens nationwide.

While the Association views this move as a positive step, Ato Getachew emphasized that it remains an incremental measure. He noted that despite government pension increases of 69 percent in 2011 E.C. and 76 percent in 2015 E.C., the current payouts remain insufficient to keep pace with the nation’s soaring cost of living.

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Bethelhem Solomon

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