Global Payment and Compliance
Remote employees in Ghana. Hire and pay Remote employees.
Ghana is among the growing and promising economies with private and public enterprises. It's one of the most populous countries in Africa, with approximately 31 million people, and English is the official language. Ghana's GDP is one of the highest in West Africa, primarily due to significant contributions by various industries such as automation, manufacturing, and export of resources. Also, we cannot ignore Ghana's fast internet speed and quick adoption of technology.
Are you an international employer interested in working with Ghanaians' top skills in various industries? Are you wondering how you can work with remote employees in Ghana compliantly and seamlessly? This is the right post for you. We discuss how to hire and pay remote employees in Ghana.
Each country or state has its rules and regulations that guide employment issues, and Ghana isn't an exception. Therefore, you need to do it right. It entails classifying employees in the proper categories and understanding other issues, including how the Ghanaian payroll and tax system works and their Labor laws.
There are a few notable employment laws in Ghana you should know. For instance, in case of employment goes beyond six months, you need to have a contract of employment in writing with such workers in Ghana. Additionally, employees have the right to reject dangerous work. Finally, employees should work for a maximum of 8 hours/day and 40 hours/week.
Let's get into it. You can hire remote employees in Ghana through two methods, i.e., set up a subsidiary in Ghana or use EOR services.
If you want to add remote employees to your team from Ghana, you may consider setting up a subsidiary. A subsidiary is a branch or part of your company that operates overseas, and in this case, it should be in Ghana. You'll be a local employer with a physical entity in Ghana.
While setting up a subsidiary, you'll have to comply with the local business and employment laws. It also entails setting up a local payroll and hiring Ghanaian citizens to work with you.
However, settling on this option is not suitable for everyone. It's expensive and time-consuming to set up a subsidiary, and the process can be complex, especially in law matters.
An employer of record (EOR) is an entity that legally takes ownership of processing, funding payroll, onboarding employees, and ensuring local compliance on behalf of an employer.
Using an EOR saves you time and hassles of onboarding international remote employees. Therefore, you don't have to worry about hiring remote employees in Ghana. For instance, you can use Workpay as your EOR to onboard and pay remote employees from Ghana because they understand Ghanaian local laws and the labour force.
It's also a cheaper and less time-consuming option than setting up a subsidiary in Ghana. Most importantly, you've access to more skilled remote employees through EOR services.
Check out another helpful guide: hiring and paying remote employees in South Africa.
Each country has unique pay periods and payroll regulations. Additionally, other things such as taxes and wage rates differ widely. Therefore, you need to understand such issues while working with remote employees in Ghana, especially as an international employer.
If you don't want to deal with this kind of hassle, you may permanently settle for an EOR provider who handles everything from hiring remote employees to paying them compliantly.
According to the National Tripartite Committee, the minimum daily wage in Ghana is 13.35 cedis ($2.24).
An employer pays about 13% of the total employment cost to contribute to social security and pension, while an employee pays 5.5%. It's also worth noting a 1.5% tax on electronic payments.
This table shows the employee income tax (PAYE) rates in Ghana as outlined by the Ghana Revenue Authority:
Note: Nonresident individuals are taxed at a flat rate of 25% on their income.
1. Direct bank transfers
One of the common ways to pay remote employees is through direct deposits. You electronically transfer funds directly from your company's account to your employee's account. International employers will have to make wire transfers using the SWIFT network.
2. Pay Cards
Payroll cards are also an excellent way to pay remote employees if you don't want direct deposits or checks. Most importantly, employers can use such cards anywhere as they're widely accepted. Additionally, they can access their funds without needing traditional bank accounts.
3. Mobile money transfer services
Employers can also utilize mobile money transfers service to pay remote employees in Ghana. The top options include Wise, Skrill, Sendwave, and Xoom (powered by PayPal). They are also called Payment Initiation Service Providers (PISP). Such payments are easy and fast to initiate, even when sending money internationally. Additionally, they allow you to directly access funds in your connected bank account.
4. Use money orders
You can use money order services if you're paying money in person or sending cash to be picked up. It's also a cheap and effective way to pay some employees in Ghana. For instance, Western Union, MoneyGram, and World Remit are some of the best options.
5. Outsource payroll / Use EOR services
Outsourcing payroll for your remote team in Ghana is also a viable option. It simply means you only focus on managing your remote employees' work as another party helps you process the payroll and stay compliant. That's the essence of using an EOR provider.
Such an entity will ensure your remote employees get their payment on time. It also remits contributions to Ghana's relevant agencies/ bodies, including taxes and benefits.
Workpay is your ideal EOR provider and partner in Ghana. Workpay understands the African labour force and laws in Ghana. Therefore, it helps international employers legally hire the best talents and skills without setting up a local entity.
Workpay also helps you process a local compliant payroll in Ghana for your remote employees.
Subscribe to get the latest articles, information, and advice to help you better run your small business. Delivered weekly, for free.