Payroll and Benefits Guide Ghana
Last updated: May 09, 2023
Employer Payroll Contributions
|13.00%||Total Employment Cost|
|13.00%||Social Security and Pension|
Employee Payroll Contributions
|5.50%||Total Employee Cost|
|5.50%||Social Security and Pension|
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|
The daily minimum wage in Ghana is 14.88 GHS.
MINIMUM WAGE (PER MONTH)
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.
There are no provisions in the law regarding 13th salaries.
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.
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.
Paid Time Off
After one year of employment for a full-time employee, the annual paid leave entitlement is 15 working days.
There are 13 public holidays in Ghana.
No provision within the law to provide paid sick leave. However, any sick leave must be certified by a doctor.
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)
There are no statutory laws regarding paternity leave.
There are no statutory laws regarding parental 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
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 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
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 in Ghana is generally outlined in the employment agreement or collective bargaining agreement.
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.
The standard VAT rate is 15%.
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Public Holidays Calendar
|Sunday||Jan-1||New Year's Day|
|Monday||Jan-2||New Year's Day|
|Saturday||Apr-22||Eid el Fitre|
|Monday||May-1||May Day (Workers’ Day)|
|Wednesday||Jun-28||Eid al Adha|
|Thursday||Sep-21||Kwame Nkrumah Memorial Day|