Payroll and Benefits Guide - Ghana

Ghana
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Currency

Ghanaian Cedi (GHS)
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Capital

Accra
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Employer Taxes

13.00%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

The name “Ghana” actually means “Warrior King” in the Soninke language.

Ghana was the first country in sub-Saharan Africa to gain independence from colonial rule on March 6, 1957.

Ghana is known for its rich cultural heritage and is home to over 100 ethnic groups, each with its own distinct traditions, languages, and customs.

Ghana has a reputation for being one of the friendliest countries in Africa.

Ghana is the second-largest producer of cocoa in the world.

Lake Volta in Ghana is the largest man-made lake in the world by surface area.

Ghana

Contributions

Employee Payroll Tax

Social Security and Pension5.50%

Employer Payroll Tax

Social Security and Pension13.00%

Payroll

Payroll Cycle

Payments must be made on the same day of each month and no later than the final working day of each month in Ghana, where the payroll cycle is monthly. However, some firms prefer to pay their workers every two weeks.

13th Salary

The law makes no mention of thirteenth salary.

Work Hours and Week

The normal workweek in Ghana is 40 hours long, which equates into 8 hours per day over a five-day period. In a few sectors, the workweek can be extended to 48 hours per week.

Overtime

Overtime is defined as work performed in excess of the regular weekly working hours and is subject to the terms of the employment contract or collective bargaining agreements. There are limits on the amount of hours an employee may work when requested to work overtime or on a holiday. The weekly maximums are 48 hours. The maximum hours that minors may work vary as well.

More than 40 hours of overtime per week are compensated at 150% of the standard hourly rate.

Ghana

Leave

Paid Time Off

The yearly paid leave entitlement for a full-time employee is 15 working days after one year of employment.

Public Holidays

In Ghana, there are 13 public holidays.

Sick Days

There is no provision in the law for paid sick leave. Any sick time, however, needs to be authorized by a doctor.

Maternity Leave

Employees currently pregnant are entitled to 12 weeks of paid maternity leave at 100% of their usual pay (up to 14 weeks in the case of multiple or complicated births). The employer covers for maternity leave.

When a mother returns from maternity leave, she is allowed one hour of unpaid time off per day to breastfeed the kid until they turn one.

Paternity Leave

Regarding paternity leave, there are not any official laws.

Parental Leave

Regarding parental leave, there are not any official laws.

Termination

Termination Process

The method of termination varies depending on the type of contract and the cause for termination and is governed by the employment agreement or collective bargaining agreement.

The employment contract may be terminated at any time by either the employer or the employee. Written notification is required.

The employee may file a suit with the labor court and, in some circumstances, have their employment reinstated if the termination is thought to be unfair.

When a job is considered “at-will,” either the employer or the employee has the right to discontinue it at the end of the day without giving a reason.

Paying the employee in place of notice is an option when the employment contract does not contain a “at will” clause.

Notice Period

Ghana’s notice period is as follows:

  • One month’s notice or one month’s compensation in lieu of notice for contracts lasting three years or longer
  • Two weeks’ notice or two weeks’ compensation in lieu of notice is required for employment contracts shorter than three years.
  • When it comes to a week-to-week contract, seven days’ notice is required.
  • Any party may end a contract that is determinable at will at the end of the day without giving any prior notice.

Severance Pay

In the case of an individual termination (for non-economic grounds), there is no severance pay.

Compensation is negotiated between the company and the employee when the termination is due to redundancy.

Probation Period

Probation Period

In Ghana, the job contract or collective bargaining agreement usually has details about probation.

Immigration

Ghana is a member of several regional treaties, such as the Economic Community of West African governments (ECOWAS), which offer a specific framework for participating governments. ​The majority of business travelers to Ghana need a Business Visa (B-1). Due to their citizenship, some foreign nationals are exempt from requiring a visa. Single or multiple entries are possible with B-1 visas. Applicants on B-1 visas may ask for a 30- to 60-day initial stay. For a total stay of 120 days, business visas can be renewed once for 60 days.

There are three primary categories of work authorization in Ghana, each of which is valid for a maximum of 12 months:

  • For businesses with a pre-approved quota, the In Quota Work Permit is available.
  • The Standard Work Permit (no quota but lengthier processing time) for all other foreign national employees
  • For businesses operating in the oil and gas industry, the PC (Petroleum Commission) Work Permit is required.

All visitors entering Ghana or passing through the country must have received a yellow fever vaccination at least 10 days prior to their intended departure date. If they have already received the vaccination, they must present documentation (a certificate) stating that the vaccination was received no more than 10 years prior to entering Ghana.

VAT

The commonly used standard rate of VAT in Ghana is 15.00%