Employer Record in Ghana

Basic information

Capital: Accra

Time zone: GMT

Languages: English

Currency code: GHS

Human Resources at a Glance 

Contract Terms

Contracts must be in English. They must be in writing and signed by both parties.

A contract must include:

  • name
  • start date
  • length of the employment
  • job description
  • termination conditions

Guidelines Regarding Probation Period/Trial Period

The standard probationary period is between 90 days and 180 days. However, there is no explicit provision in the Labor Act about the maximum length of probation which will be determined in the employment agreement.

Regulations and Rules Regarding Working Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.

Minimum Wage Requirements

The minimum wage is GHC 365.31 per month.

Termination 

Grounds

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • lack of qualifications for the job
    • misconduct
    • redundancy
    • legal restriction that prohibits the worker from performing the job.

Notice Period

The minimum notice period is 14 days and will be increased according to the length of the employment.

  • 14 days if the length of service is less than 3 years
  • 30 days if the length of service is more than 3 years

Severance Pay

In Ghana, there are no statutory requirements for severance payments. During the notice period, the employee will receive standard salary wages. In the case of redundancy, it will need to be negotiated between the employee and employer.

Payment & leave Compensation & Holidays 

SalaryPayment

According to the Labor Act, employers are obligated to pay their employees’ wages on time and in legal tender. Monthly payments must be made to employees who work on a monthly basis, while weekly payments are made to employees who work on a weekly basis. The Act also allows for in-kind wage payment.

Payslip 

There is no statutory requirement for employers to provide employees in Ghana with payslips. However, this practice is recommended.

Annual Leave

Both full-time and part-time employees are entitled to 15 working days of paid time off (PTO) a year. PTO accrues monthly at 1.25 days per month. Employees are eligible for annual leave after 12 months of work.

Sick Leave

The Labor Act has no explicit provision for sick leave and usually depends on the company’s policy. However, employees that present a medical certificate can take leave without using their paid time off.

Maternity & Parental Leave

Employees are entitled to 12 weeks of paid leave. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.

The employee can extend leave additional 2 weeks at 100% pay if they have a pregnancy-related illness or conceiving more than one child.

In Ghana, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Tax and Social Security Information

Personal Income Tax

The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates, such as the household status and the number of children.

Social Security

The Social Security and National Insurance Trust (SSNIT) is responsible for managing Ghana’s Social Security and National Insurance system.

Both employees and employers are required to make contributions to SSNIT. Employees contribute 5.5% of their basic salary, while employers contribute 13%.

Additionally, there is a voluntary provident fund scheme in Ghana. This allows both employers and employees to contribute up to 16.5% of the employee’s basic salary.

Public Holidays 2024

OccasionDate
New Year’s Day1.1
Constitution Day1.8
ndependence Day3.6
Good Friday3.29
Easter Monday4.1
Eid al-Fitr*4.1
May Day5.1
Eid gl-Adhg*6.17
Founders’Day8.5
Kwame Nkrumah Memorial Day9.23
Farmers’Day12.6
Christmas Day12.25
Boxing Day12.26

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