Ghana Employer of Record & Payroll
Africa Deployments Ghana offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Ghana for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Ghana.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
In addition to our services, we can offer you the employee in Ghana, Medical, Disability, Life, and Workmen’s Compensation Insurances.
Ghana, officially the Republic of Ghana, is a country along the Gulf of Guinea and the Atlantic Ocean, in the subregion of West Africa.
Ghana [which means “warrior king”] is one of Africa’s biggest attractions and success stories, given that it is a stable democracy. The energetic and vibrant cities make visits worthwhile, as well as the abundant wildlife, and the lush beaches along the picturesque coastline.
What is the main language spoken in Ghana:
In Ghana English is the official language, and the lingua franca.
Ghana is a multilingual country with ±80 languages spoken overall. Of the ±50 languages indigenous to Ghana, Akan is the most widely spoken in the south and Dagbani is most widely spoken in the north.
What type of employment contracts can you offer in Ghana:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 3 – 6 months [standard]
WHAT INCOME IS TAXABLE IN Ghana:
Any individual who works and lives in Ghana for more the 183 days a year will be subject to local taxes in Ghana. They maintain a permanent home in Ghana. The tax years from effectively from 01 July to 30 June the following year. They may not be present for more than 122 days in the tax year and the two preceding tax years after that.
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Ghana:
- Pensions
- Emoluments payable to employees of the East African Development Bank with effect from 01st July 1997
- Official employment income of persons employed by the Ghana Police Forces, Ghana Army, Ghanan Prison / Correctional Services, or within a civil capacity.
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
Standard working hours: Number Overtime to be paid?
The standard working hours in Ghana are 8 hours per day and 40 hours per week. Any hours worked beyond the standard working hours are considered overtime. The overtime rate is 1.5 times the employee’s regular hourly wage for any hours worked in excess of the standard working hours. However, if the employee works on a public holiday, the overtime rate is double the employee’s regular hourly wage.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
SSNIT SSF: 11% |
GHS 120 |
|
National Health Insurance Fund (CNAM) |
2.5% |
GHS 120 |
|
National Pension Fund (CNAPS) |
0.5% |
GHS 120 |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security (CNaPS) |
SSNIT SSF: 13% |
GHS 120 |
|
National Health Insurance (CNAM) |
2.5% |
GHS 120 |
|
National Employment and Vocational Training Fund (FNEF) |
1% |
GHS 120 |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Security (CNaPS) |
13% |
11% |
|
National Health Insurance (CNAM) |
2.5% |
2.5% |
|
National Employment and Vocational Training Fund (FNEF) |
1% |
0.5% |
What is the Maternity and Paternity policy within Ghana:
- 12 weeks [minimum of 8 weeks generally to be post birth]
- 5 days, subject to legislation currently being passed in Ghana
What type of leave is allowed in Ghana:
- 7 days, full pay for four months of continued service that can be used during the calendar year. 15 Public Holidays per annum as per government gazette.
- Must complete the first month of continuous service to be entitled. Sick pay will then be paid out for sickness or injury (must be proven by a qualified medical practitioner) for the first month at full pay. If during the second month of sickness the employee has not returned to work then the employer is entitled to terminate the contract of employment.
Do I need to pay a mandatory bonus annually OR is it discretionary in Ghana:
Generally in Ghana any bonus is at the discretion of the employer, but recommended for employees with six months’ services and above. Particulars of an employee’s salary in terms of the contract of employment may specify bonus payments.
If applicable an end of Year Bonus tends to be 15% of an employee’s annual salary in Ghana.
What Gratuity / Severance payments do you need to provide for Ghana:
- An employee who has worked for an employer for a period of not less than 5 years is entitled to a gratuity payment of not less than 15 days’ basic pay for each completed year of service.
- For employees who have worked less than 5 years, the gratuity payment is calculated as follows: 2.5 days’ basic pay for each completed year of service.
- An employee who is laid off or terminated due to redundancy is entitled to a severance payment of not less than 30 days’ basic pay for each completed year of service.
- If the employee has worked for the employer for less than one year, the severance payment is calculated as follows: 2.5 days’ basic pay for each completed month of service.
CAN YOU GIVE FRINGE BENEFITS IN Ghana:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Ghana:
- The probationary period cannot exceed 6 months.
- During the probationary period, either the employer or the employee may terminate the employment relationship without notice or reason.
- If the employer terminates the employment during the probationary period, they are not required to give a reason for the termination.
- If the employee is confirmed in the job, the probationary period shall be counted as part of their period of continuous employment with the employer.
Is 13th month pay (Bonus) mandatory?
Not mandatory, applicable as per contract.
What are the Corporate and VAT / Sales tax rates in Ghana:
Corporate Tax Rates: 25% [in general]
VAT / Sales Tax Rates: 15% [on most goods and services]
Public Holidays in Ghana:
- January 1 - New Year's Day
- January 07 - Constitution Day
- January 09 - Constitution Day (in lieu)
- March 06 - Independence Day
- April 07 - Good Friday
- April 10 - Easter Monday
- April 22 - Eid ul-Fitr
- April 24 - Eid ul-Fitr Holiday
- May 01 - Workers' Day
- May 25 - African Union Day
- June 28 - Eid ul-Adha
- August 04 - Founders' Day
- September 21 - Kwame Nkrumah Memorial
- December 01 - Farmer's Day
- December 25 - Christmas Day
- December 26 - Boxing Day
What Industries we support in Ghana:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
