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How To Hire New Remote Employees | Ghana

Hire employees in

Ghana

, hassle-free

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Ghana

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Hire employees in
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, hassle-free

With Workpay, your business can easily hire employees in

Ghana

.
No more worrying about local laws, complex tax systems or
managing international payroll. Workpay takes care of everything
in 150+ countries.

Book a discovery call
capital city
Ghana
currency
Cedi (GHS)
language spoken
English
payroll frequency
Monthly
employer taxes
8%-35%
vat - standard rate
12.5%
cost of living index
512$ (3,328₵)
gdp - real growth rate
Per capita $8,343
termination process
Varies
employee protections
Moderate
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Overview

Due to rising commodity prices and robust domestic demand, Ghana's economy is expected to gradually recover over the medium term. Ghana got $1 billion in SDRs from the IMF recently, a portion of which would be used to aid economic recovery. In the years 2021-23, annual growth is predicted to average 5.1 percent. Real per capita GDP is expected to rebound to pre-COVID-19 levels in 2021, after dropping by 1.7 percent in 2020.

As the government pursues its economic stimulus program, the fiscal deficit is anticipated to remain high. It is expected to fall to 14% of GDP in 2021 and 9.5 percent in 2023, still exceeding Ghana's 5% cap.

Public Holidays

1 January- New Years Day

7 January- Constitution Day

6 March - Independence Day

7 March- Independence Day Holiday

15 April - Good Friday

18 April - Easter Monday

1 May - May Day

2 May- May Day Holiday

2 May- Eid al-Fitr

25 May- Africa Unity Day

1 July- Republic Day

9 July- Eid al-Adha

4 August-Founder's Day

21 September-Kwame Nkrumah Memorial Day

2 December- Farmer's Day

25 December- Christmas Day

26 December-Boxing Day

27 December -Christmas Holiday


Minimum wage

Ghana's monthly minimum wage rates are computed as a daily wage multiplied by 27 days. If an employee takes up additional hours at work, then the hours are regarded as overtime work. Thus, the minimum wage is computed as 4.33 times the work hours per week, or rather 12.53 Cedis ($2.07) daily.

Payroll cycle

Payroll in Ghana is done on a monthly basis, with payments due on the same day each month and no later than the final working day of the month. Some firms, on the other hand, choose to pay their employees biweekly.


There are no provisions in the law regarding 13th salaries.

Taxation

The worldwide income of a resident person is taxed. The assessable income of a resident person includes income from business and investment (from both Ghanaian and foreign sources).

If a non-resident person's business and investment income originates in Ghana, it is included in the assessable income for the year of assessment. Any revenue derived from a non-resident person's Ghanaian permanent establishment (PE) is subject to taxation.

The general rate of corporate income tax (CIT) is 25%.

CIT is charged at a rate of 35 percent for mining and upstream petroleum industries, and 22 percent for companies primarily engaged in the hotel industry.

The CIT rate for non-traditional exporters is 8%, while banks have a CIT rate of 2%.

Leaves

Parental Leave

Every female worker is entitled to 84 days (12 weeks) of fully paid maternity leave. Before the maternity leave is granted, the pregnant employee is required to present a medical certificate from a medical practitioner. This certificate must show the expected date for the pregnant employee’s confinement. In case of caesarean or abnormal births, the maternity leave is extended for two more weeks.

Paternity leave is not a legal provision in Ghana; however, in some instances, a one week leave can be granted by an organization upon a collective agreement.

Termination process

The termination of employment in Ghana varies across organizations, depending on the employment agreement and contract. Either the employer or the employee can end the employment any time, though a written notice is required. In case of unfair termination, the employee can present a claim at the labor court.

When the employment termination is regarded as ‘at-will,’ the worker or employee can end the employment without notice. However, in case the ‘at will’ clause is missing  in the signed employment agreement, the employer is expected to pay the employee “in lieu of notice”.

Notice Period

The Ghana notice period follows the following guidelines:  

  • If the contract is three or more years, a one-month notice is required or a one-month pay in lieu. 
  • If the employment contract is below three years, there is a need for a two weeks’ notice or pay in lieu worthy the two weeks.  
  • If the contract was a weekly one, there is a need for seven days notice
  • If the contract is terminated willingly by either the employer or employee, no notice is required.  

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