Employer of Record in Ghana

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Ghana if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Ghana below, to avoid any compliance issues.

Employment Contract Requirements

Employers in Ghana are required to strictly follow the provisions laid out in the Labour Act and its related regulations. When creating employment contracts and carrying out hiring processes, it is essential to closely adhere to these established laws to guarantee legal conformity and foster a smooth employment relationship. Key areas to consider include the start date, job description, duties, salary, benefits, and any probationary period

Onboarding Process

We can help you get a new employee started in Ghana quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Ghana

In Ghana, the regular workweek usually comprises 40 hours, divided into 8 hours per day over a five-day workweek.

Overtime in Ghana

Any hours worked beyond the standard 40-hour workweek are compensated at a rate of 150% of the regular pay rate.

Probation Period in Ghana

The terms of probation in Ghana are typically specified in the employment contract or collective bargaining agreement.

In 2025, Ghana's minimum wage stands at GHS 19.97 per day, a 10% increase compared to the 2024 rate of GHS 18.15.

This rate applies to all workers, and any changes are typically announced by the National Tripartite Committee. The minimum wage is expected to increase gradually in the future based on economic conditions and inflation. The minimum wage in Ghana is determined by the National Tripartite Committee, comprising representatives from the government, employer associations, and trade unions.

Global expansion shouldn't mean losing time to paperwork or dealing with complicated, country-specific HR systems. An Employer of Record helps you keep your focus on talent by handling the operational side of employment in Ghana. That includes onboarding, contract management, payroll processing, and statutory compliance, all aligned with local laws and best practices. The EOR guarantees that employees are legally employed and properly supported from day one.

This streamlined setup allows you to prioritize recruiting the best people and integrating them into your company culture. Your team stays lean, and you avoid getting caught up in the details of local processes or shifting regulations. For founders, global hiring managers, or HR teams working across borders, an EOR multiplies your impact, reducing admin time, preventing errors, and helping ensure that new hires have a smooth experience from the get-go.

Fiscal Year in Ghana

1 January - 31 December is the 12-month accounting period that businesses in Ghana use for financial and tax reporting purposes.

Payroll Cycle in Ghana

The payroll cycle in Ghana is usually monthly, with employees being paid the last working day of each month.

Bonus Payments in Ghana

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

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 13% on top of the employee salary in Ghana.

Employee Payroll Tax Contributions

In Ghana , the typical estimation for employee payroll contributions cost is around 5.5%.

Individual Income Tax Contributions

Income tax in Ghana is 'Pay As You Earn'. The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates.

Pension in Ghana

Ghana's pension system comprises two main tiers: the Social Security and National Insurance Trust (SSNIT) for formal sector employees and the National Pensions Scheme (Tier 2) for both formal and informal sector workers. SSNIT, funded by contributions from employers and employees, offers retirement, survivor's, invalidity, and emigration benefits. In Tier 2, contributions are managed by private pension fund managers, supplementing SSNIT benefits.

Hiring in Ghana means taking on local payroll obligations, which often include unique tax rates, contribution rules, and strict documentation. If you're not familiar with the system, or don't have a local entity, it’s easy to make mistakes. That’s where an Employer of Record ccomes in. The EOR manages payroll for your team on your behalf, ensuring every process is accurate, timely, and legally compliant.

Key Ways an EOR Supports Payroll in Ghana:

• Full Legal Compliance: Ensures all payments, deductions, and filings meet country-specific requirements.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Statutory Benefit Contributions: Pays into required social programs and manages country-mandated benefits.
• Employee Documentation: Generates compliant contracts and manages hiring and termination paperwork.
• Local Currency Payouts: Delivers salaries in local currency, avoiding delays or exchange rate issues for employees.

In Ghana, work permits and visas are essential for employers looking to hire international employees or relocate talent. Employers must submit applications to the Ghana Immigration Service (GIS) and ensure all required documents, such as employment contracts, business registration, and justification letters, are provided.

Key visa types in Ghana include the Short-Term Work Visa for assignments up to 3 months (though Ghana has no specific short-term work permit except for rotator permits in the oil and gas sector), the Long-Term Work Visa for employment exceeding 3 months, and the Investor Visa for foreign entrepreneurs establishing businesses.

Employers are responsible for sponsoring their employees' work visas and must comply with local labor laws to avoid delays and ensure smooth processing. Before initiating a work permit application, foreign nationals must secure an approved entry visa, and applications must be submitted in person at the Ghana Immigration Service office. Work permit application fees generally range between US$80–250, while visa application fees range from US$60–150 depending on the number of entries.

Mandatory Leave Entitlement in Ghana

The annual leave entitlement in Ghana is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Ghana

In Ghana, Employees are entitled to 13 public holidays.

Paid Time Off in Ghana

In Ghana, After one year of employment for a full-time employee, the annual paid leave entitlement is 15 working days.

Maternity Leave In Ghana

Expectant employees are eligible for 12 weeks of paid maternity leave at 100% of their regular pay rate, which extends to 14 weeks in the event of multiple or complicated births.

Paternity Leave In Ghana

Sick Leave In Ghana

The Labour Act in Ghana does not explicitly address sick leave; typically, it is governed by the company's policies. Nonetheless, employees holding a medical certificate can take leave without utilizing their accrued paid time off.

Parental Leave In Ghana

Ghana's labor laws do not include a distinct "parental leave" policy.

Adoption Leave

A person who adopts a child under the age of 10 is entitled to paid leave based on the employees average salary

Childcare Leave

A mother or father can take paid leave (equal to the minimum wage), which varies based on the age of the child:

When hiring across multiple countries, maintaining consistency in how you deliver employee benefits quickly gets tricky. Each country, including Ghana, has its own legal rules, cultural norms, and contribution systems. An Employer of Record helps you strike the right balance between global structure and local compliance. They take over the complexity of delivering benefits that are aligned with Ghana’s legal requirements and competitive with local market expectations.

From ensuring statutory benefits are in place to managing local onboarding timelines and enrollment systems, the EOR provides a seamless experience for both employer and employee. This makes it easier to grow your team across borders without reinventing your benefits process in each new location. You stay in control of your overall benefits strategy, while the EOR takes care of executing it in a way that works legally and culturally in Ghana. It’s a smarter way to scale benefits globally without losing local relevance.

Termination Process in Ghana

The termination process varies according to the employment agreement or collective bargaining agreement and is based on the type of contract and reason for termination.

Notice Period in Ghana

The minimum notice period is 14 days and will be increased according to the length of the employment.

Severance in Ghana

In Ghana, there are no mandated regulations for severance payments. Throughout the notice period, the employee will continue to receive regular salary wages. Negotiations between the employee and employer are required in the event of redundancy.