Thanks for the welcome and the response you provided.
Yes, the organization is from the US. So far the response I have received as to why they need to pay me in local currency is because the Ethiopian government requires it. Please see the full response below they forwarded to me from SafeGuard (external company helping my organization with the logistics, including opening a local bank account for me). I am going to dig further into what this all means but an initial thoughts from you?
Also, I am going to explore the option of splitting my salary between the US and Ethiopia, preferably with the majority of it being in the US. Will also ask about transaction/wiring fees to move Birr salary back to the US, as well as how they are planning on handling the exchange rate.
Do you have any recommendations and/or insights on how I should push for the exchange rate to be handled (e.g. peg to the US dollar, monthly average, etc.), assuming being paid locally is definitely mandatory? Also, do you know if there are any restrictions from the Ethiopian government on moving Birr from the local account to a US bank account?
To legally employ an Expat or local national in Ethiopia, or any other country, we would have to handle their payroll with our contractually obligated, in-country partner, the legal employer of record. This ensures all statutory HR and taxes are handled legally as required by that country. We take on all mitigating risk and ensure compliance. This turns the payroll from your side into an accounts payable and we simply invoice you monthly prior to actual delivered funds to the employee in local currency to a local bank account setup by our in-country partner.
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Response I was given:
If you were to pay them outside of that country, that would open your organization up to corporate exposure/risk and require an entity setup to be compliant within that country. Worst-case scenario, if you are exposed as a corporation and not abiding by local employment laws, you can be banned from doing business in that country and face huge fines.