Hire in Ghana
Here’s where you get started with human resources best practices and hiring in Ghana.
Currency of Ghana
The Capital of Ghana
Time Zone in Ghana
Important Facts About the Country of Ghana
Introduction to Ghana
What to Know about Ghana's Geography
Climate in Ghana
The Culture of Ghana
Religions Observed in Ghana
Languages Spoken in Ghana
Ghana’s Human Resources at a Glance
Employment Law Protections in Ghana
- Constitution of Ghana
- National Pension Act
- National Health Insurance Regulation
Employment Contracts in Ghana
While a written employment contract is not always necessary, it is required if the employment continues for a period of six months or more. The following terms must be established in writing:
- the names of the employer and the employee
- the appointment date
- the job title and grade
- the rate, method and intervals of pay
- the work hours
- the period and details of holiday pay
- conditions relating to sickness or injury and the details of sick pay
- information regarding social security or a pension scheme
- the disciplinary rules applicable
- the dispute resolution procedure
- information regarding overtime payment
Ghana's Fixed Term Contract Terms
Ghana's Guidelines Regarding Probation Period/Trial Period
Regulations and Rules Regarding Working Hours in Ghana
According to the Labor Act, the maximum standard working hours per day are eight hours or 40 hours per week. While the law allows adaptations for different types of work, the average number of hours for each worker over a period of four weeks or one year must still be eight hours per day or 40 hours per week. Any additional hours worked beyond this may be considered as overtime and should be paid at an overtime rate.
Employees are entitled to a rest period of 30 minutes if their normal hours of work are continuous. If the normal hours are split into two parts, the break should not be less than one hour and will not be included in normal working hours. Furthermore, if an employee works normal hours for seven consecutive days, he or she must take a consecutive 48-hour rest period.
Ghana's Laws Regarding Overtime
Employees cannot be asked to work extra hours unless the company has established overtime pay rates. Additionally, employees cannot waive their right to receive overtime pay, even if they agree to work longer hours.
For an employer to dismiss an employee, they must have a just cause. This means that the reason for the dismissal must be reasonable and in compliance with the Labor Act or a fair procedure. The Act outlines specific situations in which an employee’s dismissal will be considered fair, such as incompetence, lack of qualification for the job or misconduct.
In contrast, an employment contract can be terminated without cause. Employers have the legal right to terminate an employee’s contract at any time and for any reason, provided they give appropriate notice or pay the employee’s wages in lieu of notice as per the employment contract. The employer is not required to provide a reason or justification for the termination.
According to the Labor Act, unfair termination can occur if an employee is terminated for reasons such as refusal or insistence to join a union, gender, race, ethnicity, color, origin, creed, social status, economic status, political affiliation, pregnancy, disability or temporary illness.
Ghana's Requirements Regarding Notice Periods
- Contracts of three years or more: one month’s notice (or one month’s pay in lieu of notice)
- Contracts of less than three years: two weeks’ notice (or two weeks’ pay in lieu of notice)
- Weekly contracts: seven days’ notice
Redundancy/Severance Pay in Ghana
The amount of redundancy pay, along with its terms and conditions, are subject to negotiation between the employer, the employee and the employee’s union representative.
If an employment contract is terminated for reasons other than redundancy, the employee is entitled to receive payment for:
- any remuneration earned before the termination
- any deferred payment due before the termination
- any compensation due for sickness or accident
- expenses related to journey and repatriation of the employee and their family (for foreign contracts)
- any leave entitlements
However, employees who are terminated by dismissal are not eligible for employer grants and benefits.
Post-Termination Restraints/Restrictive Covenants
The law does not establish a specific time frame for these agreements. Instead, each case is evaluated by the court on an individual basis to determine what length of time is appropriate and acceptable for the agreement to be in effect.
Tax and Social Security Information for Employers in Ghana
Personal Income Tax in Ghana
|Monthly Chargeable Income (GHC)||Tax Rate (%)|
Non-resident individuals are generally taxed at a flat rate of 25%.
Social Security in Ghana
The Social Security and National Insurance Trust (SSNIT) is responsible for managing Ghana’s Social Security and National Insurance system.
Both employees and employers are required to make contributions to SSNIT. Employees contribute 5.5% of their basic salary, while employers contribute 13%.
Additionally, there is a voluntary provident fund scheme in Ghana. This allows both employers and employees to contribute up to 16.5% of the employee’s basic salary.
*The above rates serve as a broad guideline. Actual rates charged will differ.
Important Information for Ghanaian Employees
Entitlement to annual leave is not affected by public holidays, sick leave, pregnancy, confinement, or authorized absence for communal work or civil duties.
If an employee falls sick (with a medical certificate) during their annual leave, the period of sickness will not count towards their annual leave entitlement.
Pregnant women who become ill due to their pregnancy or confinement are entitled to paid sick leave.
Employers typically have their own policies that outline the payment and length of sick leave an employee can take as part of their benefits package.
Maternity & Paternity Leave
Benefits to the Employee in Ghana
Ghanaian Statutory Benefits
Employees in Ghana are entitled to social security insurance, annual leave, sick leave and maternity leave as prescribed by law.
Rules Regarding Visas and Foreign Workers in Ghana
While some African nationals can enter Ghana visa-free for up to 90 days, most international citizens require a visa to visit the country.
Depending on nationality and availability, many types of visas are available, such as embassy visas, visa on arrival and eVisa. In addition, a valid passport or travel document is required. Single-entry visas are valid for 90 days after issuance and should be applied for no more than 30 days before departure.
Foreign nationals may be authorized to work in Ghana through one of the following channels:
- a short-term or long-term work and residency permit
- the Ghana Investment Promotion Centre’s automatic immigration quota (GIPC)
In both cases, the employing entity must apply for and sponsor work authorization for foreign employees. The sponsoring entity must be registered in Ghana.
When applying for work authorization, there are constraints on the types of positions a foreign individual may hold. The position must be highly specialized and require expertise no Ghanaian resident possesses. To determine the gaps and the specific position the foreign expert is required to fill, resident labor market tests are required. However, these tests are not required for GIPC automatic quota applications, as the entity receives a set number of automatic quotas based on its investment in Ghana.
The GIPC automatic immigrant quota is an indefinite work permit slot allocated to companies registered with the GIPC. The number of quotas available to a company is determined by the amount of foreign equity or capital invested in the company’s operations in Ghana. Once a company is granted permission to use its quota to hire a foreign national, the GIPC requests that a residence permit be given in the employee’s name.
Public Holidays Recognized by Ghana in 2023
|1.||New Year’s Day||01.Jan.2023|
|2.||New Year Holiday||02.Jan.2023|
|11.||Kwame Nkrumah Memorial Day||21.Sep.2023|