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Payroll and Benefits Guide Ghana

Last updated: May 09, 2023

Currency
Ghanaian Cedi (GHS)
Employer Taxes
Unknown
Payroll Frequency
Monthly
Employee Costs
5.5%
Capital
Accra
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
13.00%
Social Security & National Insurance Trust (SSNIT) and National Pension (NPRA), the minimal contributions payable is 66.16 GHS and the maximum is 7,020 GHS. The minimum insurable earnings for 2024 is 490.05 GHS and the maximum is 52,000 GHS.
13.00%
Total Employment Cost
Employee Employee Payroll Contributions
5.50%
Social Security & National Insurance Trust (SSNIT) and National Pension (NPRA), the minimal contributions payable is 66.16 GHS and the maximum is 7,020 GHS. The minimum insurable earnings for 2024 is 490.05 GHS and the maximum is 52,000 GHS.
5.50%
Total Employee Cost
Employee Income Tax
0.00%
Up to 4,380.00 GHS
5.00%
4,380.00 GHS – 5,700.00 GHS
10.00%
5,700.00 GHS – 7,260.00 GHS
17.50%
7,260.00 GHS – 43,260.00 GHS
25.00%
43,260.00 GHS – 240,000.00 GHS
30.00% 240,000.01 GHS and over

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The daily minimum wage in Ghana is 18.15 GHS.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

The payroll cycle in Ghana is monthly and payments must be made on the same day of each month and no later than the last working day of each month. However, some employers choose to pay their employees on a bi-weekly basis.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

The standard workweek in Ghana consists of 40 hours a week and typically is broken down to 8 hours per day for a five-day workweek. The workweek can be increased to 48 hours per week in specific sectors.

Overtime

Work in excess of the standard weekly work hours is considered overtime and is regulated by the employment contract or collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. These maximums are 48 hours per week.
Overtime hours in excess of 40 hours a week are paid at 150% of the regular pay rate.

Leave

Annual Leave (vacation)

After one year of employment for a full-time employee, the annual paid leave entitlement is 15 working days.

Public Holidays

Public holidays that fall on the weekend are moved to a weekday as a day off in lieu.

The religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
7 Jan 2024 Sunday Constitution Day
6 Mar 2024 Wednesday Independence Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
10 Apr 2024 Wednesday Eid ul-Fitr Tentative
1 May 2024 Wednesday May Day
17 Jun 2024 Monday Eid al-Adha Tentative
4 Aug 2024 Sunday Founders’ Day
5 Aug 2024 Monday Founders’ Day Holiday Day Off in Lieu
21 Sep 2024 Saturday Kwame Nkrumah Memorial Day
23 Sep 2024 Monday Kwame Nkrumah Memorial Day Holiday Day Off in Lieu
6 Dec 2024 Friday Farmers’ Day
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day

Sick Days

No provision within the law to provide paid sick leave. However, any sick leave must be certified by a doctor.

Maternity Leave

Pregnant employees are entitled to 12 weeks (increasing to 14 weeks in the case of multiple or complicated births) of paid maternity leave at 100% of the employee’s regular pay rate. Maternity leave is paid by the employer.
After returning from maternity leave, the woman is entitled to one hour’s leave during the workday to nurse the child until the child reaches the age of one.

Paternity Leave

There are no statutory laws regarding paternity leave.

Parental Leave

There are no statutory laws regarding parental leave.

Other Leave

An employee may be allowed additional leave types pending employer approval for the following:

  • Adoption Leave: A person who adopts a child under the age of 10 is entitled to paid leave based on the employee’s average salary
  • Childcare leave: A mother or father can take paid leave (equal to the minimum wage), which varies based on the age of the child:
    • Up to 2 children under the age of 14: 3 days’ leave
    • 3+ children under the age of 14: 6 days’ leave
    • For parents with a disabled child: The mother or father can take off an additional day of work each month until the child reaches the age of 18
  • Compassionate Leave: Workers should be given paid time off for compassionate leave e.g. the death of a spouse. The law does not state how many days must be given, each company can decide their own policy.
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

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.
Either the employee or employer can terminate the employment contract at any time. Notice in writing is required.
If the termination is deemed unfair, the employee may make a claim with the labor court and in some cases, have their employment re-instated.
If the employment is considered ‘at-will,’ either the employer or employee may terminate the employment at the end of the day without notice.
When there is no ‘at will’ clause in the employment contract, it is possible to pay the employee in lieu of notice.

Notice Period

Notice period in Ghana is as follows:

  • For a contract of 3 or more years, one month’s notice or one-month pay in lieu of notice
  • For an employment contract of fewer than three years, two weeks’ notice or two weeks’ pay in lieu of notice
  • In the case of a contract from week to week, seven days’ notice
  • A contract determinable at will by either party may be terminated at the end of the day without any notice

Severance Pay

There is no severance pay in the case of individual dismissals (for non-economic reasons).
When the termination is due to redundancy, compensation is subject to negotiation between the employer and the employee.

Probation Period

Probation in Ghana is generally outlined in the employment agreement or collective bargaining agreement.

VISA

VISA

Ghana is part of the Economic Community of West African States (ECOWAS) and other regional treaties that provides a specific framework for member states. ​
Most business visitors to Ghana require a Business Visa (B-1). Some foreign nationals are visa-exempt based on their citizenship. B-1 visas allow for single or multiple entries. B-1 visa applicants may request an initial stay of 30 to 60 days. Business visas may be extended once for 60 days for a total maximum stay of 120 days.
The three main types of work authorization in Ghana which can be granted for up to 12 months are:

  • ​The In Quota Work Permit for companies with a pre-approved quota
  • The Standard Work Permit for all other foreign national workers (no quota but longer processing time)
  • The PC (Petroleum Commission) Work Permit for companies active in the oil and gas sector

All travelers coming into or transiting through Ghana are required to have been vaccinated against yellow fever at least 10 days from the proposed date of travel and where already vaccinated, provide evidence (certificate) indicating the duration of the vaccination status of not more than 10 years before entering Ghana.

VAT

General

The standard VAT rate is 15%.

Stay up to date on payroll & employment law changes

Version History

February 18, 2024
The minimum insurable earnings for 2024 is 490.05 GHS and the maximum is 52,000 GHS.
April 18, 2022
The daily minimum wage in Ghana is now 13.53 GHS or 365.31 GHS per month.
January 9, 2022
Employee income tax updated
More

Questions & Answers

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Marion Hofs
Marion Hofs
2 years ago

Is a Ghaniain employer allowed to pay monthly salary in Dollar/Euro instead of GHS?

Alex Margolin
Editor
Alex Margolin
2 years ago
Reply to  Marion Hofs

According to the Labour Act in Ghana, “the salary, wages and allowances of the worker shall be made payable in legal tender.” Currenly, the GHS is the only legal tender in Ghana.

Akosua
Akosua
1 year ago
Reply to  Alex Margolin

Hi Alex, can a company have a salary index in foreign currency whilst the employees are paid the Ghs equivalent?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Akosua

Yes, a company can have a foreign salary index.

Foster Mantey Bekoe
Foster Mantey Bekoe
2 years ago

How does an individual working for US based company and lives in Ghana gets paid? How does the company pay the individual and also comply according to the taxation system in Ghana? Is it possible the company can pay the individual directly, for the individual/worker pay his taxes?Thank you, hope to get feedback soon

Emily Kuhnert
Emily Kuhnert
2 years ago

Hi there, thank you for your question. You have 2 options. 1. If an individual has their own company like an LLC, one can work as a contractor for said company, however, regarding taxation, this would be the responsibility of the contractor to pay. 2. Under an Employer of Record, one would be treated more like a regular employee, and payments and all contributions would be the responsibility of the EoR and would be compliant with local labor law.

Foster Mantey Bekoe
Foster Mantey Bekoe
2 years ago

Please how much does a concierge earn weekly or monthly in Accra-Ghana?

Emily Kuhnert
Emily Kuhnert
2 years ago

Hi Foster, this is out of the scope of what we offer on the CountryPedia.

Dan
Dan
2 years ago

Is a Ghanaian employer mandated to pay 13th month salary?

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Dan

Hi Dan, no, there are no statutory laws regarding 13th salaries.

bright
bright
2 years ago

What does the law says about paying a consultant a monthly salary?
Should statutory deductions be made?

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  bright

Hi, thank you for your question. If you are working with a consultant, you do not have to make deductions, this is something that the consultant does for themselves as they are responsible for making sure that this is paid.

Akosua
Akosua
2 years ago
Reply to  Emily Kuhnert

Thanks for this. Are consultants working more that 120 days considered employees? Are they required to pay PAYE on their fees and should that be deducted as source?

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Akosua

Hi Akousa, consultants are not defined by the length of the work, rather by role and responsibilities. Consultants are required to ensure that all social contributions and such are paid by themselves, not the company they are consulting for.

Mbah Sylverline Ogechi
Mbah Sylverline Ogechi
1 year ago
Reply to  Emily Kuhnert

Please how can I check my payslip. It seems I can’t check it twice in a month. What do I do?

Emmanuel Takyi
Emmanuel Takyi
2 years ago

What are the options for the employees if the employees work more than the usual 40 hours a week?

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Emmanuel Takyi

Hi Emmanuel, thank you for your question. In Ghana,the maximum number of hours that can be worked in a day is 9 hours which includes overtime. There are no provisions in the law regarding overtime pay or any additional compensation. If you have agreed upon other terms with your employer through the employment contract, however, this must be honored.

josephine annan
josephine annan
2 years ago

Hi if you are running and agency and some staff will be on rolling contracts where they work based on their availability for fixed periods of time is it their responsibility to pay their tax or is the employer responsible. ? also what are their rights in respect to holidays as they are not permanent employees do they just take it as unpaid ?

Emily Kuhnert
Emily Kuhnert
2 years ago

Hi, thank you for your question. Employees who work at least 200 days in one year are entitled to leave, so it would depend on how much and often these employees work. Regarding taxes, it is the employer’s duty to pay the payroll contributions.

Angelu Cristal
Angelu Cristal
2 years ago

Are the employees entitled for an end-of service pay? Or Gratuity?

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Angelu Cristal

Hi Angelu, for individual dismissals, no severance pay or gratuity is required unless otherwise stated in your employment agreement. For termination due to redundancy, this is something that can be negotiated.

Kristin Deardorff
Kristin Deardorff
2 years ago

Outside of the statutory employee benefits, what benefits are culturally expected?

Emily Kuhnert
Emily Kuhnert
2 years ago

Hi Kristin, thank you for your question. The only one that might be expected is private health insurance.

Kristin Deardorff
Kristin Deardorff
2 years ago
Reply to  Emily Kuhnert

Hi Emily, thanks for your response! Would you happen to know what the statutory benefits include, specifically employer contributions to social security and pension? Is it correct that there is no sick leave requirement?

Lisa
Lisa
1 year ago
Reply to  Emily Kuhnert

Do you have to pay any annual unpaid leave in Ghana if a worker leaves the company without taking holidays does the company have to pay for the unpaid leave days ?

N/A
N/A
2 years ago

Can salaries be paid in foreign currencies?

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  N/A

Salaries must be paid in local currency.

AMMISHADDAI KWADWO
AMMISHADDAI KWADWO
2 years ago

My boss has not paid us for three months, We keep asking why and all he says is we should wait. I heard he is planning to fly out of the country. How do we prevent that? Is there any organization above the labor office that we can report to for immediate help?

Emily Kuhnert
Emily Kuhnert
2 years ago

Hi, this is not something that we are able to advise you on. I recommend that you reach out to labor lawyer in order to assist you with the the steps you need to take to ensure that you are paid your wages.

Paul
Paul
2 years ago

I have a friend who lives in Ghana and works for a company there. They keep telling her they can’t pay her unless her pay is paid to another person as a trustee, because she is not Ghanian. I need help to get her money. She’s starving to death. Who can I contact for help

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Paul

Hi Paul, I would suggest reaching out to a labor lawyer in order for her to get assistance in getting what is owed to her.

Nana
Nana
2 years ago

hello, please is Severance Pay in Ghana taxable?

Last edited 2 years ago by Nana
Erez Greenberg
Erez Greenberg
2 years ago
Reply to  Nana

Hi Nana, severance pay is non-taxable if the termination of the contract is a result of a management decision.

Akosua
Akosua
2 years ago

What are the various Special Leave (paid and unpaid) available in Ghana (e.g. bereavement, domestic emergencies, marriage etc)

Last edited 2 years ago by Akosua
Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Akosua

Hi Asouka, you can find this information on this page under “Other Leave.”

Rima
Rima
2 years ago

Does the client need to withhold tax before paying a consultant? If yes, how much?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Rima

As a consultant, we cannot provide tax advice and recommend you seek professional tax guidance. Typically, consultants would need to declare their own taxes.

Mathew Nawortey
Mathew Nawortey
1 year ago

My employer refuse to disclose how much she’ll pay me during my probation period. Just after first month she sacked me without paying me anything. She employed me with agreed documents. Please what should I do to get my money from her?

Erez Greenberg
Erez Greenberg
1 year ago

Unfortunately, we’re not able to offer legal advice with regard to your issue. Please seek legal advice in this matter.

Akosua
Akosua
1 year ago

can salary index be in USD while employees are paid in cedi equivalent?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Akosua

Yes, USD is usually the currency used. However, it means the Cedi equivalent will change each time there is a rate change.
The rate to be used in determining the Cedi equivalent will be the Bank of Ghana mid-rate.

Jordan Evans
Jordan Evans
1 year ago

Are the 15 days of annual leave accrued, or are they given to the employee at the beginning of their year in once allotment? Also, if an employee leaves the company (for any reason), are they paid out for 15 days if they’ve not yet taken it?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Jordan Evans

Annual leave is accrued. Upon termination, the worker is entitled to annual leave in proportion to the period of service in the calendar year or payment in lieu of notice of termination.

Alex
Alex
1 year ago

Hi,
does the taxation differ for employee or contractor (service agreement)?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Alex

There are many factors that can impact the rate of tax of an individual, not just their set-up status. The individual should seek advice from a local tax expert to understand their specific tax burden.

Kwasi
Kwasi
1 year ago

How is leave pay calculation made in Ghana?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Kwasi

In Ghana, the calculation of leave pay is based on an employee’s average daily wages, which is determined by dividing the total amount of money earned by the employee during a specified period by the number of days worked during that same period. The average daily wage is then used to calculate the amount of leave pay due for each day of leave taken.

It is important to note that the specific rules and regulations regarding leave pay in Ghana may vary depending on factors such as the employee’s job, salary, and length of service, as well as any applicable collective bargaining agreements or employment contracts. Additionally, the calculation of leave pay may be subject to certain legal requirements, such as minimum wage laws and other labour regulations, so it is advisable to seek advice from a local employment law expert if you have specific questions or concerns.

Jeji
Jeji
1 year ago

Hi

Do international staffs working in Ghana pay same tax rates as Ghanian citizens?

Wale

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Jeji

Non-residents pay taxes at a flat rate of 25%.

Enoch Edmond
Enoch Edmond
1 year ago

Please is severance pay calculated on Basic salary or net slary. Thks

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Enoch Edmond

In Ghana, severance pay is negotiated between the employer and worker (or Trade Union). There is no set formula as to how it is calculated.

Ernest
Ernest
1 year ago

can you pls confirm for me the standard working days in Ghana for a month. and if there is any legal document backing that

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Ernest

In Ghana, the standard working days per week are typically Monday to Friday, for a total of five days per week. The typical working hours are 8 hours per day, for a total of 40 hours per week. However, the exact working hours can vary depending on the company and the specific job. Some companies may also offer flexible working arrangements or the option to work additional hours on weekends.

Sam
Sam
1 year ago

Is payment in lieu of notice for 3 or more years always one month? What about the law that states that for every full year, the employee is deserving of one week notice and that more than 3 years would be determined by the number of years multiplied by the one week deserving notice with the maximum being 12 weeks lieu notice

Joy Anulika
Joy Anulika
1 year ago

Hello, please my employer does does not want to pay for sick leave, is this something I can dispute?

emma
emma
1 year ago

How many days is applied to determine fixed term employee monthly wage

emmanuel
emmanuel
9 months ago

What is the formulae for monthly minimum wage?

Joanne
Joanne
9 months ago

Hi how to get the daily rate to calculate holiday pay for monthly salary in Ghana?

Johnn
Johnn
1 month ago
Reply to  Enny Shmurin

Thank you

Krampah
Krampah
8 months ago

My father has died and it’s one and half year and the company have not called to open his nomination form or to tell us his beneficiaries.
A lawyer in Ghana has written them three letters but no response from the company. So in that case what do we do please

Leon Akua
Leon Akua
8 months ago

Hi where can i have an employment contract created ?

Joanne
Joanne
7 months ago

Hi, what the daily minimum wage of Ghana as of today?Is there a labor law for the holiday calculation specifying the average monthly working days?Thank you in advance

Last edited 7 months ago by Joanne
Joanne
Joanne
7 months ago

Hi actually search online for labor law stating the average working days, but I failed to see any.Any advice please?I already i get the ave working days, i just need some proof so for the employees to trust and believe.Thank you

Johnn
Johnn
1 month ago
Reply to  Enny Shmurin

Thank you so much

Joanne
Joanne
7 months ago

Hi, does Ghana pay for Compassionate leave?Thank you

Maxwell Ababio
Maxwell Ababio
7 months ago

Is there any law for appraisal bonus every year for workers

Anthony Asinah
Anthony Asinah
7 months ago

how is end of service benefits (EOSB) calculated in Ghana..the formula ? I heard in Ghana the first year isnt calculated or isnt mandatory.

Adwoa
Adwoa
3 months ago

Does working on weekends require the employer to pay any double the salary even though working weekends does not exceed the required 40 hours a week?

Adwoa
Adwoa
3 months ago

Is the employer required to pay any allowance if you work during the night?

Johnn
Johnn
1 month ago

Hi,

Just want to confirm the average working days 21.67, so this year since its leap year average working days applied at Ghana is 21.83.Is there any labor laws regarding this?because a friend insisting holidays should not be included.so it will 249/12=20.75

Last edited 1 month ago by Johnn
Johnn
Johnn
10 days ago

Hi,

Just want your guidance on how to calculate for termination pay to avoid being sue.Thank you

Johnn
Johnn
5 days ago

Hi,

I just want to ask please, if in Ghana loans in lending company is permitted to deduct in the company payroll?In other country it is actually not allowed.

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Payroll and Benefits Guide
in Ghana

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Ghana
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ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
7 Jan 2024 Sunday Constitution Day
6 Mar 2024 Wednesday Independence Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
10 Apr 2024 Wednesday Eid ul-Fitr Tentative
1 May 2024 Wednesday May Day
17 Jun 2024 Monday Eid al-Adha Tentative
4 Aug 2024 Sunday Founders’ Day
5 Aug 2024 Monday Founders’ Day Holiday Day Off in Lieu
21 Sep 2024 Saturday Kwame Nkrumah Memorial Day
23 Sep 2024 Monday Kwame Nkrumah Memorial Day Holiday Day Off in Lieu
6 Dec 2024 Friday Farmers’ Day
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day