Download Ghana Guide

By submitting this form, you agree to receive the requested information, as well as occasional communications regarding Papaya Global's products, services, and events. You can unsubscribe at any time. To read more visit privacy policy

Back

Public Holidays Calendar

Download:
CSV
PDF
ICS
Copy link
Ghana 2023
Day Date Holiday Notes
Sunday Jan-1 New Year's Day
Saturday Jan-7 Constitution Day
Monday Mar-6 Independence Day
Friday Apr-7 Easter
Saturday Apr-8 Easter
Sunday Apr-9 Easter
Monday Apr-10 Easter
Saturday Apr-22 Eid el Fitre Tentative
Monday May-1 Workers’ day
Thursday May-25 African Union Day
Thursday Jun-29 Eid al Adha Tentative
Friday Aug-4 Founder's Day
Thursday Sep-21 Kwame Nkrumah Memorial Day
Friday Dec-1 National Farmers' Day
Monday Dec-25 Christmas Day
Tuesday Dec-26 Boxing Day
Countrypedia

Ghana
Payroll and Benefits Guide

Last updated: Jan 09, 2022
Currency
Ghanaian Cedi (GHS)
Payroll Frequency
Monthly
Employer Taxes
13.00%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Ghana

Download PDF Version

Overview

Capital
Accra
Currency
Ghanaian Cedi (GHS)
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December

Contributions

Employer

Employer Payroll Contributions

13.00%

Social Security and Pension

13.00% Total Employment Cost

Employee

Employee Payroll Contributions

5.50%

Social Security and Pension

5.50% Total Employee Cost

Employee

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

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 a 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. There are also different maximum working hours for minors.

Overtime hours in excess of 40 hours a week are paid at 150% of the regular pay rate.

Working Week

Monday-Friday

Leave

Paid Time Off

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

Public Holidays

There are 13 public holidays in Ghana.

Sick Days

There is no statutory legal requirement for paid sick leave in Ghana.

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.
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: 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) and 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

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 months’ notice or one month pay in lieu of notice 
  • For an employment contract less 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.

In the event of unfair dismissal, an employee may file a complaint with the labor commission. If the labor commission finds that the termination of employment was unfair, it may order the employer to reinstate the employee from the date of termination of employment. The employee may be reinstated to the same position or in a reasonably suitable role on the same terms and conditions as before termination. Alternatively, the labor commission may order the employer to compensate 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 Ten (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 ten (10) years before entering Ghana.

VAT

General

The standard VAT rate is 12.50%.

Version History

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
Stay up to date on payroll & employment law changes

Questions & Answers

Subscribe
Notify of
guest
51 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Marion Hofs
Marion Hofs
1 year ago

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

Alex Margolin
Admin
Alex Margolin
1 year 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
10 months 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?

Foster Mantey Bekoe
Foster Mantey Bekoe
1 year 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
1 year 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
1 year ago

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

Emily Kuhnert
Emily Kuhnert
1 year ago

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

Dan
Dan
1 year ago

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

Emily Kuhnert
Emily Kuhnert
1 year ago
Reply to  Dan

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

bright
bright
1 year ago

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

Emily Kuhnert
Emily Kuhnert
1 year 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
1 year 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
1 year 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.

Emmanuel Takyi
Emmanuel Takyi
1 year ago

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

Emily Kuhnert
Emily Kuhnert
1 year 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
1 year 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
1 year 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
1 year ago

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

Emily Kuhnert
Emily Kuhnert
1 year 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
1 year ago

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

Emily Kuhnert
Emily Kuhnert
1 year ago

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

Kristin Deardorff
Kristin Deardorff
1 year 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?

N/A
N/A
1 year ago

Can salaries be paid in foreign currencies?

Emily Kuhnert
Emily Kuhnert
1 year ago
Reply to  N/A

Salaries must be paid in local currency.

AMMISHADDAI KWADWO
AMMISHADDAI KWADWO
1 year 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
1 year 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
1 year 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
1 year 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
1 year ago

hello, please is Severance Pay in Ghana taxable?

Last edited 1 year ago by Nana
Akosua
Akosua
1 year ago

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

Last edited 1 year ago by Akosua
Emily Kuhnert
Emily Kuhnert
1 year ago
Reply to  Akosua

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

Rima
Rima
10 months ago

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

Mathew Nawortey
Mathew Nawortey
10 months 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?

Akosua
Akosua
10 months ago

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

Jordan Evans
Jordan Evans
8 months 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?

Alex
Alex
4 months ago

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

Kwasi
Kwasi
2 months ago

How is leave pay calculation made in Ghana?

Jeji
Jeji
1 month ago

Hi

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

Wale

Enoch Edmond
Enoch Edmond
1 month ago

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

Ernest
Ernest
7 days 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

Joel
Joel
6 days ago
Awaiting for approval

How many working days are used by organisations in Ghana

See how Papaya Global can help you automate your global payroll or PEO whilst staying 100% compliant with local labor laws

Get a Demo
Learn how we can help you comply with Local Labour Law
Learn now