Overview

Capital
Accra
Currency
Ghanaian Cedi (GHS)
Date Format
dd/mm/yyyy

Taxes

Employer
13.00% - Social Security and Pension
Employee
5.50% - Social Security and Pension

Minimum Wage

General

As of January 1, 2020, the daily minimum wage in Ghana is 11.82 GHS. 

Payroll

Payroll Cycle

Pay date is the last working day of the month. 

Working Hours

General

A regular work week in Ghana is 40 hours, or 8 hours a day. 

Overtime

Overtime hours are paid at the rate of 150% of the normal pay rate. For weekend and holidays, overtime is 200% of the regular pay.

Payroll Contributions

Social Security

In Ghana, there is a three-tier pension and social security scheme:

  • Tier 1: National social security (mandatory)
  • Tier 2: privately managed occupational pension scheme (mandatory)
  • Tier 3: provident fund and personal pension scheme (voluntary)

For Tier 1 and 2, contributions are as follows:

  • Employer: 13.00%

Employee: 5.50%

Unemployment Insurance

In Ghana, there is no law regarding unemployment benefits. 

Leave

Public Holidays

There are 13 public holidays in Ghana. 

Maternity Leave

Maternity leave is 12 weeks, and in certain cases, this can be extended.  After returning from maternity leave, a woman is entitled to one hour during the workday to nurse until the child reaches the age of one year old. 

Paternity Leave

There is no statutory paternity leave in Ghana.

Parental Leave

There is no statutory parental leave.

Termination

Termination Process

In Ghana, either the employee or employer is able to terminate the employment contract at any time.  Termination 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.  Reasons for unfair termination include:

  •  The employee intends to join a trade union
  • If employee is pregnant or is absent due to maternity leave
  • If the employee is terminated for reason of race or religion
  • If the employee is disabled
  • If the employee is forced to terminate due to inaction of the employer if the employee has lodged multiple harassment complaints. 
Notice Period

Notice period in Ghana is as follows:

  • If the employee is employed on a weekly basis, 7 days’ notice must be given
  • If the employee has been employed for less than 3 years, 2 weeks’ notice must be given
  • If the employee has been employed for more than 3 years, 1 months’ notice must be given.

It is possible to pay the employee in lieu of notice unless there is an “at will” clause in the employment contract.  In this case, an employee can be terminated at the end of a working day with no 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
  • Any 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)

VAT

General

15%