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Overview
Ghanaian Cedi (GHS)
CURRENCY
Accra
CAPITAL
monthly
PAYROLL FRECUENCY
13
PUBLIC HOLIDAYS
0 to 13
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Ghana
Employer
Company Payroll Contributions
0% - 13%
Social Security/Pension
0% - 13%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 5.50%
Social Security/Pension
0% - 5.5%
Total Employee Cost
Employee Income Tax in Ghana
Worker Income Tax
0%
Up to 4,380.00 GHS
5%
4,380.00 GHS – 5,700.00 GHS
10%
5,700.00 GHS – 7,260.00 GHS
17.50%
7,260.00 GHS – 43,260.00 GHS
25%
43,260.00 GHS – 240,000.00 GHS
30%
More than 240,000.01 GHS
Payroll Contributions in Ghana
Payroll Cycle
Payments are due on the same date of every month and not after the final working day of each month in Ghana, where the payroll cycle is monthly. However, some firms prefer to pay their workers every two weeks. An EOR in Africa can provide outsourced payroll options that fit every business.
13th Salary
The statute makes no mention of the thirteenth salary.
Employee Benefit in Ghana
Visa and work permit in Ghana
Ghana is a member of several regional treaties, such as the Economic Community of West African States (ECOWAS), which offer a specific framework for participating states. The majority of business travelers to Ghana need a work visa (B-1). Due to their citizenship, some foreigners are exempt from requiring a visa. Multiple or one-time entries are possible with B-1 visas. Applicants on B-1 visas may ask for a 30- to 60-day initial stay. For a total stay of 120 days, people can renew business visas once for 60 days.
There are three primary categories of work authorization in Ghana, each of which is valid for a maximum of 12 months:
- For businesses with a pre-approved quota, there is the In Quota Work Permit.
- All other international workers must have the Standard Work Permit (no quota/longer processing time).
- For businesses engaged in the oil and gas industry, the PC (Petroleum Commission) Work Permit.
All visitors entering Ghana or passing through the country must have received a yellow fever vaccination at least ten days prior to their intended departure date. If they have already received the vaccination, they must present documentation (a certificate) stating that the vaccination was received no more than ten years prior to their entry into Ghana.
VAT in Ghana
12.50% is the usual VAT rate. Partnering with an employer of record in Ghana is a great way of keeping the compliancy with tax guidelines.
Working Hours in Ghana
General
The normal workweek in Ghana is 40 hours long, which translates into 8 hours per day over a five-day period. In some industries, the workweek can extend to 48 hours per week. When they hire employees in Ghana, companies must abide by the Labour Law, and the best way to do that is with a Professional Employment Organization.
Overtime
Overtime is the work excess of the regular weekly working hours and is subject to the terms of the employment agreement or collective bargaining agreements. There are limits on the number of hours an employee may work when wanting to work extra hours or on a holiday. 48 hours a week are the legal maximum. The maximum hours that minors may work vary as well. A PEO or an employer of record in Ghana is a great way of keeping a record of overtime.
More than 40 hours of overtime per week are compensated at 150% of the standard hourly rate.
Working Week
From Monday to Friday.
Employee Termination in Ghana
Termination Process
The method of termination varies depending on the type of contract and the cause for termination and is governed by the contract of employment or collective bargaining agreement.
The employment contract may be terminated at any time by either the employer or the employee. Written notification is required.
The employee may file a suit with the labor court and, in some circumstances, have their employment reinstated if the termination is thought to be unfair.
When a job is regarded as "at-will," either the employee or the employer has the right to discontinue it at the end of the working day without giving a reason.
Paying the employee in place of notice is an option when the employment contract does not contain an "at will" clause.
Notice Period
Ghana's notice time is as follows:
- One month's notice or one month's compensation in lieu of notice is required for contracts lasting three years or more.
- Two-week notice period or two-weeks' remuneration in lieu of notice for contracts of employment shorter than three years.
- Seven days' notice is required in the case of a deal that is week to week.
- Any party may end a contract that is determinable at will at the finish of the day without giving prior notice.
Severance Pay
In the event of individual dismissals, there is no severance pay (for non-economic reasons).
Compensation is negotiated between the company and the employee when the dismissal is due to redundancy.
An employee may complain to the labor commission about unfair dismissal. The employer may have to reinstate the worker as of the date of dismissal if the labor commission rules that the termination was unfair. On the same conditions and terms as before termination, the employee may be restored to the same job or a fairly suitable one. Alternatively, the labor commission could mandate that the worker obtains payment.
Probation Period
In Ghana, the job contract or union bargaining agreement will typically contain details about probation.
Employee Leaves in Ghana
Paid Time Offs
The yearly leave entitlement pay for a full-time worker is 15 working days after a year of employment.
Public Holidays
There are 13 national holidays throughout the year.
Vacation Holidays
There are 15 vacation holidays throughout the year.
Sick Days
Sick leave pay is not a statutory requirement in Ghana.
Paternity Leave
Regarding paternity leave, there are no formal laws.
Paternal Leave
Regarding parental leave, there are no formal laws.
Other Leave
Depending on company clearance, an employee might be permitted extra leave kinds for the following reasons:
- Adoption: An employee is eligible to leave pay depending on their average annual pay if they adopt a kid under the age of 10.
- Childcare leave: Depending on the child's age, a mother or father may take paid leave (equivalent to the minimum wage):
- 3 days of leave for up to two children under 14.
- 6 days of leave if there are three or more children under 14.
- For parents of disabled children: Until the child turns 18, the father or mother may take an extra day off work each month.
Maternity Leave in Ghana
Employees who are pregnant are entitled to 12 weeks of maternity leave pay at 100% of their usual pay (up to 14 weeks in the case of several or complex births).
When a mother returns from maternity leave, she is eligible for one hour of time off without pay per day to breastfeed the kid until they turn one.
There are 84 leave throughout the year.