HR Software for Ghana

Leave Policy

Maternity Leave

Employees are entitled to 12 weeks of paid vacation. The employee receives 100% of his salary during this period and the employer is responsible for payment.

The employee can extend the vacation by a further 2 weeks with 100% continued payment of wages if she has a pregnancy-related illness or has more than one child.

You can use the leave module in IceHrm to manage maternity leave in Ghana

Paternity Leave

There is currently no statutory paternity leave.

Parental Leave

In Ghana, parental leave is not regulated by law. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Labor law does not contain an explicit provision for sick leave and usually depends on the company’s policy. However, employees who provide a medical certificate can take vacation without using their paid working hours.

Pay & Tax

Minimum Wage Requirements

The minimum wage is GHC 365.31 per month.

Individual Income Tax

Personal income tax ranges from 0% to 35%. Income tax is calculated according to a progressive rate. Several additional factors can affect overall rates, household status and number of children.

Payroll Cost

The cost to the employer is generally estimated at 9.16% of the employee’s salary.

  • Social Security and Pension – 9.16%

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Terminations in Ghana are usually straightforward.

Compliant terminations are:

  • Voluntary by the employee
  • By mutual agreement
  • Unilaterally by the employer due to:
    1. Lack of qualifications for the position
    2. Wrongdoing
    3. Dismissal
    4. Legal restriction that prohibits the employee from carrying out the activity.

Notice Period

The minimum notice period is 14 days and increases depending on the length of employment.

  • 14 days if you have been with the company for less than 3 years
  • 30 days if you have been with the company for more than 3 years

Severance for Employees

There are no legal requirements for severance payments in Ghana. During the notice period, the employee receives a normal salary. In the event of a dismissal, the severance payment must be negotiated between the employee and the employer.

To protect you from unforeseen financial risks arising from dismissals, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk globally and our severance provision calculation is based on prevailing common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 15 workdays of paid time off (PTO) per year. PTO accrues monthly at 1.25 days per month. Employees are entitled to annual leave after 12 months of work.

Public Holidays

There are 12 national holidays celebrated in Ghana.

National holidays include:

  • New Year’s Day
  • Constitution Day
  • Independence Day
  • Good Friday
  • Easter Monday
  • May Day (Workers’ Day)
  • Eid-Ul-Fitr
  • Eid-Ul-Adha
  • Founders’ Day
  • Kwame Nkrumah Memorial Day
  • Farmer’s Day
  • Christmas Day
  • Boxing Day

Onboarding

Onboarding

Onboarding takes 3 working days. The documents must be completed 1 day before the start date.

Additional Info

Employment Contract Details

The contracts must be written in English. They must be in writing and signed by both parties.

A contract must contain:

  • Surname
  • Start date
  • Length of employment
  • Job Description
  • Termination conditions

Probation Period

The usual probationary period is between 90 and 180 days. However, the Labor Law does not contain an express provision on the maximum duration of the probationary period, which is specified in the employment agreement.