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

The daily minimum wage in Ghana is 10.65 GHS.  On January 1, 2020, this rate will increase to 11.82 GHS. 

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. 

VAT

General

15%

Payment

Payroll Frequency

The payroll frequency in Ghana is monthly. 

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.
Advance Notice

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. 

If the company closes or merges and results in the employee losing their job, compensation can be negotiated.