Hire in Ghana

EOR in Ghana

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Ghana, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Ghana ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Ghana and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Ghana

The Ghana Parliament enacted a comprehensive Labor Act in 2003 to amend and consolidate the laws of the country relating to labor, employers, trade unions, and industrial relations. The act, which established a National Labor Commission, applies to all employers and workers except the military, the police and prison services, and those working in specific security and intelligence agencies.

Employment contracts in Ghana

As you look to hire employees in Ghana, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Except in specified cases, employees may work a maximum of eight hours a day and 40 hours a week.

Industries may prescribe different hours of work, subject to the following:

• When employees work some days shorter than eight hours, hours worked other days may exceed eight to compensate, but the total must not exceed nine hours a day or 40 hours a week.
• When employees are required to work longer days, the average hours of work over four weeks or less must not exceed eight a day or 40 a week.
• When seasonal work requires longer daily hours, the average number of hours for one year must not exceed eight a day.
• In industrial undertakings influenced by the seasons, work may be performed in 10-hour shifts for a period not exceeding 60 days.

Manual labor jobs and jobs involving dangerous work may be entitled to shorter working hours by the Ministry of Labor, but these positions are nonetheless entitled to the same rights and benefits as other full-time employees.

Employees who work continuous hours are entitled to one paid break of at least 30 minutes during the day. Employees who have a workday broken into two parts are entitled to one unpaid break of at least one hour. Every worker is entitled to a period of continuous rest of at least 12 hours between two consecutive working days. Every worker is entitled to a rest period of 48 consecutive hours during seven working days.

Except in extraordinary circumstances, no employee is required to work overtime unless the rates for overtime are fixed and communicated.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Effective January 1, 2022, the monthly minimum wage is 13.53 cedi.
• There is no legal obligation for an employer to pay an overtime premium, but many pay time and a half for overtime hours.
• All workers are entitled to payment of salary during a public holiday. There is no provision for paying workers extra for working on a public holiday.

As your employer of record in Ghana, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

The Ghanaian Labor Act does not address bonuses.

Probationary period

There is no explicit provision in the Labor Act about the maximum duration of the probation period. The Labor Act refers to a "reasonable duration determined in advance".

The probationary period and conditions of probation are generally provided in collective agreements. Where, as a condition for the engagement of an employee, a contract of employment requires probation, the employment contract must specify the duration of the probation for the employee.

Termination and severance

Either party may terminate an employment contract by giving the requisite written notice as follows:

• Seven days’ notice to terminate a weekly contract.
• Two weeks’ notice or pay in lieu to terminate a contract for less than three years of service.
• One month’s notice or pay in lieu to terminate a contract for more than three years of service.

Either party may terminate an at-will employment contract at the close of any day without first providing notice.

When a contract of employment is lawfully terminated, the employer will pay the worker:

• Any remuneration earned before termination.
• Any deferred pay due the worker.
• Any compensation due the worker because of sickness or work-related accident.
• When a foreign contract is terminated, expenses associated with leaving the country for both the worker and his or her family.

These amounts must be paid to the worker by the end of the last day of the notice period or, if no notice is required, by the end of the working day following the termination.

A collective agreement may alter the notice and payment-upon-termination provisions if the terms are more beneficial to the worker.

Employee benefits and paid leave in Ghana

When negotiating terms of an employment contract with a candidate in Ghana, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Employees who produce a medical certificate documenting pregnancy are entitled to 12 weeks of maternity leave paid by the employer plus any accrued annual leave. The employee receives full pay while on maternity leave plus any benefits to which she is otherwise entitled. The period of leave may be extended by two or more weeks if a medical practitioner certifies that the pregnancy is abnormal or has resulted in illness or if two or more babies are born.

Vacation

All workers are entitled to at least 15 days’ leave with full pay after a year of continuous service. Leave may be taken in two equal parts. When calculating leave entitlement, continuous service is not interrupted by a change in ownership or management of a company nor by absence from work due to public holidays, sickness certified by a medical practitioner, or pregnancy. The continuous service requirement is also satisfied by 200 days of work within a year.

If the employer sets the vacation dates, workers should receive notice of the date of their leave at least 30 days before its beginning.

When workers take their annual leave at the end of a calendar year, the leave may continue without interruption into the following year.

Holidays

The following are the paid public holidays in Ghana:

• New Year’s Day
• Independence Day
• Good Friday
• Easter Monday
• May Day
• African Union Day
• Republic Day
• Eid-Ul-Fitr (date varies)
• Founder’s Day
• Eid-Ul-Adha (date varies)
• Farmers’ Day
• Christmas Day
• Boxing Day

Public holidays that fall on a weekend are generally moved to the following Monday.

Sick leave

There are no provisions for sick leave.

Health coverage

Pension and health insurance programs are managed by a government agency called the Social Security and National Insurance Trust. The SSNIT administers the national pension scheme and is responsible for registering employers and employees, collecting contributions, investing funds, and processing benefits.

The SSNIT provides national retirement pension coverage for all employees. Employers may offer supplementary retirement schemes, which are specific to the industry or employer and have a different set of qualifying criteria. Private insurance and pension services are also available.

The SSNIT oversees a three-tier system:

• First Tier (the Basic National Social Security Scheme managed by SSNIT) to which employers make mandatory contributions on behalf of workers in the amount of 13% of the worker’s salary.
• Second Tier (Occupational Pension Scheme managed by an approved trustee) to which employees contribute 5.5% of their salary.
• Third Tier is a voluntary scheme that includes all provident funds and all other pension funds outside the first and second tiers.

The minimum contribution period is 180 months in the aggregate or 15 years. The three benefits under the scheme include old age pension, invalidity pension, and survivor’s lump sum benefit.

Additional benefits

In addition to healthcare benefits, employees in Ghana are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Ghana, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: June 26, 2024

Employee onboarding with an employer of record in Ghana

We write and validate all local employment contracts, streamlining the onboarding process for you and your Ghanaian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Ghana, we will:

• Schedule a welcome call to discuss HR and employment information for Ghana, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Ghana employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Ghana. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.