Ghana Payroll Outsourcing

• Population: 31,732,128
  
• Gross Domestic Product (GDP): $77.59 B
• GDP Growth (April 2021): 5.4%
• Inflation, consumer prices: 10.0%
• Foreign Direct Investment (% of GDP): 2.7%
• Unemployment Rate: 4.7%
• Capital: Accra
• Currency: Ghanaian Cedi
  
• Languages: English, Akan, Ghanaian Pidgin English

Employer Contribution

From an employer’s perspective, social security in Ghana is structured in three tiers.

• The first tier: Employers are required to contribute 13% of their payroll to social security (mandatory)
• The second tier: Employers can contribute up to 13% of their payroll to social security (voluntary)
• The third tier: A voluntary fully-funded and privately managed Provident Fund and Personal Pension Plan.

Employee Contribution

From an employee’s perspective, social security in Ghana is structured in two tiers.

• The first tier: Employees are required to contribute 5.5% of their payroll to social security (mandatory)
• The second tier: Employees can contribute up to 5.5% of their payroll to social security (voluntary)
• The third tier: A voluntary fully-funded and privately managed Provident Fund and Personal Pension Plan.

• 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.

Paid Time-Off

Employees are generally entitled to 15 days of paid annual leave.

Sick Leave

Ghana’s Labor code does not specify a time period for sick leave.

Maternity Leave

In Ghana, women are entitled to a maximum of 12 weeks of paid maternity leave.

Paternity Leave

There is no statutory paternity leave in Ghana.

• According to Act 651 of Ghana’s labor code, an employment contract may be terminated by either party at any time.
• There must, however, be a month’s notice for employees with 3 or more years of service.
• For less than 3 years of service, two weeks’ notice or two weeks’ pay in lieu of notice is required.
• For a week-to-week contract, 7 days’ notice is required by the employer.

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:

• On the basis of race, color, religion
• If a pregnant employee is absent from work when on maternity leave
• If the worker ends up with a disability

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.

• New Year’s Day (1st January)
• Independence Day of Ghana (6th March)
• Good Friday (10th April)
• Easter Monday (13th April)
• Labor Day (1st May)
• Eid al-Fitr
• Eid al-Adha
• Founders’ Day (4th August)
• Kwame Nkrumah Memorial Day (21st September)
• Farmers’ Day (4th December)
• Christmas Day (25th Husband)
• Boxing Day (28th December)