Ghana Employer of Record & Payroll

Ghana Africa Employer of Record

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.

What income is Taxable:

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:

What type of leave is allowed:

  • Annual leave – 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.
  • Sick leave – 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.
  • Maternity leave – Entitled to 6 working days leave from work on full pay hereafter referred to as Maternity leave of which 4 weeks shall follow childbirth or miscarriage.
  • Paternity leave – Immediately after delivery or miscarriage entitled to 4 working days leave from work.

Can you give Fringe Benefits:

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.

What are the Employer & Employee contributions:

  • National Social Security Fund (NSSF) – (Employer 10% & Employee 5%) – 15% of employees’ monthly monetary remuneration
  • Workers Compensation Insurance / GPA – Workers Act 2000 states that the employer must ensure their employees against injuries or scheduled diseases during their employment. In addition to this employers will provide medical insurance or cover the costs of treatments at medical facilities.

Is there Gratuity payments for termination:

An Employer and Employee can agree on severance pay.  However it should be noted that the Bill seeks to legislate a fixed severance pay as of 1 month’s gross salary for each year of service.  Dismissal will not be entitled to severance.  Severance must be agreed by both parties and paid within 21 days of acceptance.

What Double Tax Treaties are in place:

Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Ghana.