Payroll and Benefits Guide Ghana
Last updated: May 09, 2023
Contributions
Employer
Employer Payroll Contributions
| 13.00% | Total Employment Cost |
| 13.00% | Social Security and Pension |
Employee
Employee Payroll Contributions
| 5.50% | Total Employee Cost |
| 5.50% | Social Security and Pension |
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 |
Employer taxes
Employee taxes
Minimum Wage
General
The daily minimum wage in Ghana is 14.88 GHS.
MINIMUM WAGE (PER MONTH)
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
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.
PAID MATERNITY LEAVE (DAYS)
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), 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
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%.
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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...
Public Holidays Calendar
| Day | Date | Holiday | Notes |
|---|---|---|---|
| Sunday | Jan-1 | New Year's Day | |
| Monday | Jan-2 | New Year's Day | |
| Saturday | Jan-7 | Constitution Day | |
| Monday | Jan-9 | Constitution Day | |
| Friday | Apr-7 | Good Friday | |
| Monday | Apr-10 | Easter Holiday | |
| Saturday | Apr-22 | Eid el Fitre | |
| Monday | May-1 | May Day (Workers’ Day) | |
| Wednesday | Jun-28 | Eid al Adha | |
| Friday | Aug-4 | Founder's Day | |
| Thursday | Sep-21 | Kwame Nkrumah Memorial Day | |
| Friday | Dec-1 | Farmers Day | |
| Monday | Dec-25 | Christmas Day | |
| Tuesday | Dec-26 | Boxing Day |
Is a Ghaniain employer allowed to pay monthly salary in Dollar/Euro instead of GHS?
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.
Hi Alex, can a company have a salary index in foreign currency whilst the employees are paid the Ghs equivalent?
Yes, a company can have a foreign salary index.
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
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.
Please how much does a concierge earn weekly or monthly in Accra-Ghana?
Hi Foster, this is out of the scope of what we offer on the CountryPedia.
Is a Ghanaian employer mandated to pay 13th month salary?
Hi Dan, no, there are no statutory laws regarding 13th salaries.
What does the law says about paying a consultant a monthly salary?
Should statutory deductions be made?
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.
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?
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.
What are the options for the employees if the employees work more than the usual 40 hours a week?
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.
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 ?
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.
Are the employees entitled for an end-of service pay? Or Gratuity?
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.
Outside of the statutory employee benefits, what benefits are culturally expected?
Hi Kristin, thank you for your question. The only one that might be expected is private health insurance.
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?
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 ?
Hello, workers must be paid unused accrued leave upon termination.
Can salaries be paid in foreign currencies?
Salaries must be paid in local currency.
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?
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.
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
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.
hello, please is Severance Pay in Ghana taxable?
Hi Nana, severance pay is non-taxable if the termination of the contract is a result of a management decision.
What are the various Special Leave (paid and unpaid) available in Ghana (e.g. bereavement, domestic emergencies, marriage etc)
Hi Asouka, you can find this information on this page under “Other Leave.”
Does the client need to withhold tax before paying a consultant? If yes, how much?
As a consultant, we cannot provide tax advice and recommend you seek professional tax guidance. Typically, consultants would need to declare their own taxes.
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?
Unfortunately, we’re not able to offer legal advice with regard to your issue. Please seek legal advice in this matter.
can salary index be in USD while employees are paid in cedi equivalent?
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.
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?
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.
Hi,
does the taxation differ for employee or contractor (service agreement)?
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.
How is leave pay calculation made in Ghana?
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.
Hi
Do international staffs working in Ghana pay same tax rates as Ghanian citizens?
Wale
Non-residents pay taxes at a flat rate of 25%.
Please is severance pay calculated on Basic salary or net slary. Thks
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.
can you pls confirm for me the standard working days in Ghana for a month. and if there is any legal document backing that
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.
How many days is applied to determine fixed term employee monthly wage
Fixed Term Contract salaries are calculated in the same way as Indefinite Term Contract salaries unless the worker is on a less than full-time working set up.
What is the formulae for monthly minimum wage?
The daily minimum wage in Ghana is 14.88 GHS; the monthly minimum wage formula is: daily minimum wage × 27 days.
Hi how to get the daily rate to calculate holiday pay for monthly salary in Ghana?
Hello, in Ghana, we calculate: (the salary) / (21.67 average working days) x actual days worked.
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
Hello,
I am sorry for your loss. This is a very specific case which we cannot advise on, a lawyer should be able to advise further or additional local legal counsel should be sought.
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
Yes, 14.88 GHS is the current minimum daily wage. According to the Labour law, Workers are entitled to 15 working days vacation per year with ‘full pay’; “full pay” means the worker’s normal remuneration, without overtime payment, including the cash equivalent of any remuneration in kind.
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
Standard working time is Monday to Friday, 8 hours per day, and any additional hours is computed as overtime. The working schedule is a 21 days cycle in a month not less than 200 working days per year. Part 40, Sections 20 to 32 of the Labour Act outlines leave requirements.
Hi, does Ghana pay for Compassionate leave?Thank you
Hello,
Yes, compassionate leave is paid.
Is there any law for appraisal bonus every year for workers
There is no specific law but different industries might be subject to annual reviews and increases e.g. Public Sector, other unionized industries and workforce falling under Collective Agreements.
how is end of service benefits (EOSB) calculated in Ghana..the formula ? I heard in Ghana the first year isnt calculated or isnt mandatory.
Workers are only entitled to a severance/end of service pay in Ghana if redundancy is established as the reason for termination and severance would then be given as a redundancy pay – the amount of this payment is something that is negotiated. Note that the following worker types would not be entitled to redundancy pay:
1) workers hired on an employment contract for a specified period of time or for specified task
2) workers terminated during their probation period or a qualifying period of employment of reasonable duration determined in advance
3) casual workers.