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Capital City
Accra
Currency
Ghanaian Cedi
(
₵
)
Timezone
GMT +0
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
13%
Languages
English
Capital City
Accra
Currency
Ghanaian Cedi
(
₵
)
Timezone
GMT +0
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
13%
Languages
English
Ghana's official language is English, simplifying communication for international businesses. This linguistic advantage, coupled with the country's strategic time zone, positions Ghana as an accessible and cost-effective option for outsourcing.
Ghana's government prioritizes skills development, offering various training programs and incentives to enhance the capabilities of its workforce. Employers can tap into this commitment to education, ensuring access to a pool of skilled and motivated professionals.
Ghana places a strong emphasis on punctuality and formal greetings. In business settings, it is customary to exchange pleasantries before delving into discussions. Recognizing and respecting these cultural nuances contributes to positive business interactions.
Ghana boasts a rich cultural heritage, with a workforce known for its hospitality and strong sense of community. The country's labour market reflects a diverse range of skills, making it an attractive destination for companies seeking a vibrant and adaptable workforce.
Businesses can only operate smoothly in Ghana if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Ghana below, to avoid any compliance issues.
Employers in Ghana are required to strictly follow the provisions laid out in the Labour Act and its related regulations. When creating employment contracts and carrying out hiring processes, it is essential to closely adhere to these established laws to guarantee legal conformity and foster a smooth employment relationship. Key areas to consider include the start date, job description, duties, salary, benefits, and any probationary period
We can help you get a new employee started in Ghana quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
In Ghana, the regular workweek usually comprises 40 hours, divided into 8 hours per day over a five-day workweek.
Any hours worked beyond the standard 40-hour workweek are compensated at a rate of 150% of the regular pay rate.
The terms of probation in Ghana are typically specified in the employment contract or collective bargaining agreement.
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1 January - 31 December is the 12-month accounting period that businesses in Ghana use for financial and tax reporting purposes.
The payroll cycle in Ghana is usually monthly, with employees being paid the last working day of each month.
The minimum wage for employees in Ghana is typically 1.86 GHS per hour, amounting to ~297.6 GHS per month for a typical 40 hour work week.
There are no provisions in the law regarding 13th salaries.
Employer payroll contributions are generally estimated at an additional 13% on top of the employee salary in Ghana.
In Ghana , the typical estimation for employee payroll contributions cost is around 5.5%.
Income tax in Ghana is 'Pay As You Earn'. The individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates.
Ghana's pension system comprises two main tiers: the Social Security and National Insurance Trust (SSNIT) for formal sector employees and the National Pensions Scheme (Tier 2) for both formal and informal sector workers. SSNIT, funded by contributions from employers and employees, offers retirement, survivor's, invalidity, and emigration benefits. In Tier 2, contributions are managed by private pension fund managers, supplementing SSNIT benefits.
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In Ghana, work permits and visas are essential for employers looking to hire international employees or relocate talent. Employers must submit applications to the Ghana Immigration Service (GIS) and ensure all required documents, such as employment contracts, business registration, and justification letters, are provided. Key visa types in Ghana include the Short-Term Work Visa for assignments up to 3 months, the Long-Term Work Visa for employment exceeding 3 months, and the Investor Visa for foreign entrepreneurs establishing businesses. Employers are also responsible for sponsoring their employees’ work visas and must comply with local labor laws to avoid delays and ensure smooth processing.
The annual leave entitlement in Ghana is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
In Ghana, Employees are entitled to 13 public holidays.
In Ghana, After one year of employment for a full-time employee, the annual paid leave entitlement is 15 working days.
Expectant employees are eligible for 12 weeks of paid maternity leave at 100% of their regular pay rate, which extends to 14 weeks in the event of multiple or complicated births.
The Labour Act in Ghana does not explicitly address sick leave; typically, it is governed by the company's policies. Nonetheless, employees holding a medical certificate can take leave without utilizing their accrued paid time off.
Ghana's labor laws do not include a distinct "parental leave" policy.
A person who adopts a child under the age of 10 is entitled to paid leave based on the employees average salary
A mother or father can take paid leave (equal to the minimum wage), which varies based on the age of the child:
The termination process varies according to the employment agreement or collective bargaining agreement and is based on the type of contract and reason for termination.
The minimum notice period is 14 days and will be increased according to the length of the employment.
In Ghana, there are no mandated regulations for severance payments. Throughout the notice period, the employee will continue to receive regular salary wages. Negotiations between the employee and employer are required in the event of redundancy.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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