Seeking A Reliable Payroll Partner in Ghana ?
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.
Ghana Country Overview
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.
Payroll in Ghana - What You Should Know
- 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)
Ghana Payroll Done The Easy Way. The Right Way.
12 Years of Experience
Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.
Bulletproof Compliance
Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.
+44 Countries in Africa
Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.
Single Point of Contact
Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.
Maximize your ROI
It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.
Swift Payroll Implementation
With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.
We Can Help. Just Tell Us How!
Related Services
Countries We Cover
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.
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