Country Payroll Guide Ghana

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Key Facts

Capital
Accra
Date format
dd/mm/yyyy
Currency
Ghanaian Cedi (GHS)
VAT
the standard rate is 12.5%

Contributions

Employers

Social Security and Pension
Social Security and Pension - 13%
Total Employment Cost
Total Employment Cost - 13%

Employees

Social Security and Pension
Social Security and Pension - 5.5%
Total Employee Cost
Total Employee Cost - 5.5%

Minimum Wage

Minimum Wage
The minimum wage in Ghana is 12.53 GHC per day.

Payroll

Payroll Cycle
Monthly
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
Up to 3282 GHS - 0%
Employee Income Tax (2)
3828 - 5028 GHS - 5%
Employee Income Tax (3)
5028 GHS - 6468 GHS - 10%
Employee Income Tax (4)
6468 - 42268 GHS - 17.5%
Employee Income Tax (5)
42268 - 240000 GHS - 25%
Employee Income Tax (6)
240000 GHS and over - 30%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime work is commonly compensated at 150% of an employee’s normal hourly wage rate. Overtime pay for weekends and holidays is 200% of employee’s regular pay.

Leave

Paid Time Off

15 days.

Public Holidays

13 days.

Sick Days

Not included in annual leave, must have doctor’s note.

Maternity Leave

12 weeks as standard, can be extended.

Paternity Leave

None.

Parental Leave

None.

Termination

Termination Process

Employee or employer can terminate contract at any time. This must be given in writing. If termination is deemed unfair, the employee can make a claim with the labor court and in some cases, have their employment re-instated.

 

Notice Period
  • Three or more years employment – one months’ notice or one month pay in lieu of notice
  • Under three years employment – two weeks’ notice or two weeks’ pay in lieu of notice
  • For a week to week contract – seven days’ notice
Severance Pay

In the event of an employee being terminated by the employer, the employer is not obliged to compensate the employee with severance pay. However, the employer shall pay to the employee: any remuneration earned before the termination, any deferred pay due the employee, ay compensation due the employee. For expatriates – in addition to the above, an expatriate shall be paid expenses and necessaries for the journey and repatriation expenses (including the expenses of their family members).

Probation Period

Probation period is not outlined in the law, except for that that it should be reasonable and should be agreed upon beforehand.

Visa

Employment Visa

A person can get only get a work and residence permit if he/she has an employer in Ghana or is ready to establish his/her own business in Ghana. You cannot have residence permit without a work visa if your intention is to work in Ghana. Both the work and residence permit are issued together.