Employment in Ghana is governed mainly by the Labour Act, 2003 (Act 651), with pensions run through SSNIT and income tax administered by the Ghana Revenue Authority. Collective agreements often add to the statutory minimums. Here is what employers need to know about leave, pay, tax and ending employment.
The Labour Act sets minimum leave for workers. Many employers, and most collective agreements, provide more generous annual leave and set out sick leave and other paid absences in detail.
At least 15 working days with full pay for each calendar year of continuous service.
At least 12 weeks with full pay, in addition to annual leave, on presenting a medical certificate with the expected date of birth.
Maternity leave may be extended by at least 2 further weeks where the birth is abnormal or there are multiple births.
Set up each Ghanaian leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata entitlements for new joiners. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Ghana sets a national daily minimum wage, which the National Tripartite Committee of government, employers and organised labour reviews each year. New rates usually take effect in January. Check the rate currently announced by the Ministry of Labour before running payroll.
Normal hours are a maximum of 8 hours a day or 40 hours a week, with limited exceptions allowed by the Act.
Usually worked Monday to Friday. Shift work must average no more than 8 hours a day or 40 hours a week over 4 weeks.
The national daily minimum wage is set by the National Tripartite Committee. Sector agreements can set higher minimums.
Work beyond normal hours is overtime and must be paid for. The overtime rate is usually set by the employment contract or collective agreement, so check which agreement covers each group of workers.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime is paid on what was actually worked. Time & attendance →
Resident individuals pay tax on a graduated scale. Employers deduct tax from salaries every month under the Pay As You Earn (PAYE) system, remit it to the Ghana Revenue Authority, and file an annual return of employees by 30 April of the following year.
| Chargeable income | Rate |
|---|---|
| First GHS 5,880 | 0% |
| Next GHS 1,320 | 5% |
| Next GHS 1,560 | 10% |
| Next GHS 38,000 | 17.5% |
| Next GHS 192,000 | 25% |
| Next GHS 366,240 | 30% |
| Above GHS 605,000 | 35% |
Ghana's pension system has three tiers. The first two are mandatory and funded by a combined contribution of 18.5% of basic salary, which the employer deducts and pays each month.
Paid on top of the employee's salary towards the mandatory first and second tiers.
Deducted from the employee's salary. Contributions to the mandatory tiers are tax-free.
13.5% goes to the SSNIT basic scheme (Tier 1) and 5% to a privately managed occupational scheme (Tier 2).
Employers and employees can also contribute to a voluntary Tier 3 provident fund or personal pension. Combined contributions of up to 16.5% to an approved fund are tax-exempt.
Build Ghanaian pay the way you already structure it, with your own salary components, deductions and formula columns, such as Tier 1 and Tier 2 pension columns. Want to know how well IceHrm handles payroll calculations for Ghana? Contact us or see Payroll →
Either party can end a contract of employment by giving notice, but the Labour Act protects workers against unfair termination. A dismissal by the employer must be for a fair reason and follow a fair procedure.
| Type of contract | Notice |
|---|---|
| Contract of 3 years or more | 1 month |
| Contract of less than 3 years | 2 weeks |
| Contract from week to week | 7 days |
There is no fixed statutory formula for redundancy pay. Before a redundancy, the employer must inform the Chief Labour Officer and the relevant trade union and consult them. The amount of redundancy pay and its terms are negotiated between the employer and the workers or their union, and disputes can be referred to the National Labour Commission.
On termination, workers are entitled to pay for any annual leave earned but not taken.
Statutory public holidays are set by the Public Holidays Act. The government can declare additional holidays by executive instrument, and the dates of the Islamic holidays are announced each year.
The holiday list has been amended several times in recent years, so confirm the current year's calendar published by the Ministry of the Interior.
Leave groups give each office its own holiday calendar, so you can add Ghana's holidays, including the Eid dates once announced, and apply them to the right employees automatically. Holiday calendars →
The Labour Act requires employers to give workers a written statement of the particulars of their contract of employment, signed by both the employer and the worker. Contracts are written in English.
The Labour Act does not set a maximum probation period; it is agreed in the contract or collective agreement. New employees must be registered with SSNIT so pension contributions can be paid, and with the Ghana Revenue Authority for PAYE using their Ghana Card number, which serves as the tax identification number.
Send contracts and written statements for e-signing, store them on the employee's record, and track onboarding with task lists so SSNIT and tax registrations are not missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Ghana, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Ghana? Talk to us.
Start Free Trial Explore Features Contact Us