With our Ghana Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Ghana’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Geographic location: The Republic of Ghana is a Western African country bordering the Atlantic Ocean, the Ivory Coast, Burkina Faso and Togo.
Population: Ghana has a large population of over 30 million people. Many of whom are English speakers. Of the languages indigenous to Ghana, Akan is the most widely spoken.
Economy: Rich in mineral resources such as diamonds, manganese, limestone, iron and granite, Ghana is both the second largest gold producer in the African continent and the world’s second-largest producer of cocoa. As such, Ghana’s middle-income economy is driven by the service sector and manufacturing and extractive industries.
The country performs well in terms of healthcare, economic growth, and human development indices and has maintained one of the fairest and most secure governments on the continent since 1993. All of these factors, make the country a secure and prolific destination for investors.
From an employer’s perspective, social security in Ghana is structured in three tiers.
From an employee’s perspective, social security in Ghana is structured in two tiers.
Value-added tax (VAT)
The standard VAT rate is 12.5% in Ghana – applied to the supply of goods and services both local and imported.
Tangible goods supplied by VAT-registered wholesalers are subject to a flat rate of 3%.
An exemption applies for the supply of any form of power, heat, refrigeration, or ventilation.
Employees are generally entitled to 15 days of paid annual leave.
Ghana’s Labor code does not specify a time period for sick leave.
In Ghana, women are entitled to a maximum of 12 weeks of paid maternity leave.
There is no statutory paternity leave in Ghana.
The following grounds for termination are determined as ‘abusive’ and go against Ghana’s Labor Code and will result in serious consequences for the employer:
An employee’s termination is also deemed ‘abusive’ if the latter is a victim of ill-treatment by their employer
Employees in Ghana are entitled to compensation in the form of redundancy pay. This is only applicable whereby the company is obligated to cease activities due to a financial mishap and has no other choice than to terminate employees.
In that case, the compensation is subject to negotiation between the two parties.
In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.