Ghana Employer of Record (Ghana EoR) Services
Ghana payroll, hiring, talent management, and compliance requirements for your employees and independent contractors.
Ghana Employer of Record
Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Ghana. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — the Employer of Record in Ghana, will help you focus on growth for greater levels of success.
Major Cities
Accra, Kumasi
Employment Contract Termination
Although the labour act does not specify a maximum probationary period, the collective bargaining agreement will determine the length. The duration needs to be planned and reasonable.
Work Permit Required for Expats
Yes
Currency
Ghanaian Cedi (GHS)
Minimum Wage
The daily minimum wage stands at 14.88 Cedis
Official Language
English
How Employer of Record (EoR) in Ghana Works
Workforce Africa makes it hassle free to hire and manage your remote staff in Ghana without having to first set up a subsidiary or entity in the country. We handle staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. With Workforce Africa, you can now focus more on strategic activities and growing your business. These items include >>
Employment Contracts in Ghana
In Ghana, an employment contract is required for work beyond six months. The employment contracts or collective agreements regulate overtime work. There are restrictions on how many hours employees may put in when asked to work on holidays or beyond the regular weekly hours. These restrictions are in place for 48 hours weekly, with different maximum hours children can work.
Payroll frequency is monthly and there are no provisions in the law regarding 13th salaries.
Working Hours in Ghana
A typical workweek consists of forty hours, commonly broken down into five days of eight hours each. The workweek may be extended to forty-eight hours in some sectors.
Observed National Holidays and Vacation
There are 13 paid public holidays in Ghana. They are:
New Year -January 1
Constitution Day – January 7
Independence Day – March 6
Good Friday- The date varies
Easter Monday – The date varies
Workers’ Day- May 1
Eid-Ul-Fitr – The date varies
Eid-Ul-Adha – The date varies
Founders’ Day – August 4
Kwame Nkrumah Memorial Day – September 21
Farmer’s Day – First Friday of December
Christmas Day – December 25
Boxing Day – December 26
Expats, Visas & Work Permits
Applicants must either be prepared to start their own business in Ghana or have an employer there to receive a work visa. It's important to note that work and resident permits are granted concurrently. Individuals who want to work in Ghana cannot obtain a residence permit without a work visa. Furthermore, the only people who can apply for residence permits alone are the dependents of those who have work visas. Having an employment contract with a registered Ghanaian company or starting your commercial operations in the nation is the main prerequisite for obtaining a work visa, which is only granted to those eighteen (18) years of age and above. A Ghana PEO/EoR offers this service to foreigners who want to explore the market.
Paid Leave
After a year of employment, full-time employees in Ghana are entitled to 15 working days of paid annual leave.
Sick Leave: While paid sick leave is not required by law, it must be deployed after an employee presents a doctor’s report.
Maternity Leave: In Ghana, pregnant workers are entitled to 12 weeks of paid maternity leave. For multiple or troubling births, the leave lasts for 14 weeks. Mothers are entitled to an hour of workday leave for nursing after returning from maternity leave, up until the child becomes one year old.
Paternity Leave: The law does not cover paternity leave.
Bereavement Leave: Employees who lost close family members are entitled to compensated time off.
Statutory Deductions
Social Security Contribution: Employers contribute 13%, and 5.5% is deducted from the employees’ salary.
VAT: The standard rate in Ghana is 15%
Income Tax (PAYE):
Salary Range (GHS)
- Up to 4,380
- 4,381 – 5700
- 5701 – 7260
- 7260 – 43260
- 43,261 – 240,000
- 240,000 and over
Tax Rate (%)
- 0
- 5
- 10
- 17.5
- 25
- 30
Health Insurance
A Ghana employer of record/PEO can help employers make provision of health insurance policy for employees and their dependents. Health Insurance for employees is not mandatory but it is a common practice. The government health insurance program covers every citizen in Ghana for essential medical treatments.
Additional Compensation and Benefits
For hours worked beyond the standard 40 hours per week, employees are compensated at 150% of their regular pay. Additional benefits include:
Private health insurance
Holiday bonuses
Housing
Meal vouchers
Private pension (under Provident Fund)
Termination/ Severance in Ghana
Termination: If there is a valid reason, an employer can terminate an employment contract. Employees who believe their termination was unfair can file a claim with the labour court, and in some circumstances, they can be allowed to get their jobs back.
The following are permissible grounds for terminating an employment contract as specified by the labour law:
- Mutual consent between the employer and the worker
- If the worker passes away before their employment term expires
- If a medical examination deems the employee unfit for work
- If the employee could no longer match the demand of the job because of an illness or accident
- Incompetence at work,
- Or the misconduct of an employee
Notice: Workers on a contract lasting less than three years are entitled to two weeks’ notice; weekly workers are entitled to seven days’ notice. Longer-term employees are entitled to one month’s notice. No notice is required if an employment contract has an “at will” clause. However, if there isn’t an “at will” clause, written notice of termination is necessary.
- Severance: In Ghana, an employer and employee negotiate severance compensation; hence, there is no formula for calculating it. According to Ghanaian labour regulations, people whose employment was terminated will be entitled to benefits, including severance pay. On the other hand, severance compensation is not offered when an employee is let go for non-economic reasons.
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