The Republic of Ghana is a Western African country situated on the coast of the Gulf of Guinea. It extends an area of 238,533 square kilometers. Ghana is bordered to the northwest and north by Burkina Faso, to the east by Togo, to the south by the Atlantic Ocean, and to the west by Côte d’Ivoire. 

The Ghanaian economy is a mixture of private and public enterprise. About three-fifths of the GDP is derived from the services sector, while the agriculture and industry sectors each contribute about one-fifth and one-fourth of the GDP.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Ghana.

Hauptstadt :
Accra
Währung :
Ghanaian Cedi (GH¢, GHS)
Gesprochene Sprachen :
English
Einwohnerzahl :
31.73 million (2021 est.)
Mindestlohn :
GHS 13.53 per day
Lebenshaltungskostenindex :
$$ (95 of 139 nations)
Payroll Frequency :
Monthly
Mehrwertsteuernormalsatz :
12.5%
reales BIP-Wachstum :
5.4% (2021 est.)

Statutory Holidays

Employees are entitled to 13 public holidays.

The national holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1
New Year's Day
Saturday
January 3
New Year’s Day (in lieu)
Monday
January 7
Constitution Day
March 6
Independence Day
Sunday
March 7
Independence Day (in lieu)
Monday
April 15
Good Friday
Movable
April 18
Easter Monday
Movable
May 1
Worker's Day
Monday
May 2
Worker's Day (in Lieu)
Monday
May 2
Eid-Ul-Fitr
Movable
July 9
Eid-Ul-Adha
Movable
August 4
Founders’ Day
September 21
Kwame Nkrumah Memorial Day
December 2
Farmer’s Day
Movable
December 25
Christmas Day
Sunday
December 26
Boxing Day
December 27
Christmas Day (in Lieu)
Tuesday; Holiday in lieu

Contract Sharing Time


The approximate time for sharing the contract with an employee in Ghana is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • Tax rebates are provided to an employer who employs persons with disability.
  • Unpaid social security contributions attract a 3% penalty per month.
  • An employer should not permanently engage an employee in any work unless a recognized medical practitioner certifies at a pre-employment examination that the employee is in good health and is medically fit for the work assigned to the employee.

Labor Conditions


Working Hours

The hours of work of a worker should be a maximum of eight hours a day or 40 hours a week.

Where the normal hours of work are continuous, a worker is entitled to at least 30 minutes‘ break in the course of the work, but the break forms part of the normal hours of work.

Overtime

Where a worker in an undertaking works after the hours of work fixed by the rules of that undertaking, the additional hours done should be regarded as overtime work. Overtime rates are not fixed by law but are usually fixed by the relevant employment contract or collective agreement. Overtime hours are typically paid at 150% of the normal hourly wage.

Probation Period

Where, as a condition for the engagement of an employee, a contract of employment requires probation, the contract should specify the duration of the probation for the employee. The standard practice is six months.

Termination Notice Period

The notice period prior to termination depends on the contract type and length as follows:

Contract Length/TypeNotice Period
Contract determinable at willNo notice
Weekly contracts7 days
Contract of fewer than 3 years2 weeks
Contract of 3 years or more1 month

 

NOTE: The termination notice period for an employee with disabilities should not be shorter than one month.

Leave / Time Off

Annual Leave

In any undertaking, every worker is entitled to not less than 15 working days leave with full pay in any calendar year of continuous service. The requirement of continuous service is deemed to have been met if the worker has worked for not less than 200 days in the particular year.

Sick Leave

The Labor Act provides workers the right to be absent from work owing to sickness certified by a medical practitioner, but it does not indicate whether a person is entitled to sick pay nor the permissible maximum duration for sick leave.

Parental Leave

There is no statutory parental leave in Ghana.

Maternity Leave

A woman worker, on the production of a medical certificate issued by a medical practitioner or a midwife indicating the expected date of her confinement, is entitled to a period of maternity leave of at least 12 weeks after her period of confinement. The leave is entirely paid by the employer.

Paternity Leave

There is no statutory paternity leave in Ghana.

Other Types of Paid Leave

A worker may absent themselves from normal work duties with permission on the grounds of participating in voluntary communal work or the discharge of civic duties. However, the Labor Act does not fix a maximum duration for this kind of leave, nor does it expressly stipulate the employee’s remuneration during these periods.

Unpaid Leave

Employers may grant special leave to employees without pay.

Statutory Benefits

The social security contribution scheme is structured into three tiers, the first two of which require mandatory contributions. The mandatory contribution rates for the first two tiers of social security schemes are as follows:

Employer ContributionsEmployee Contributions
13%5.5%

The maximum contribution is on a salary of GHS 35,000.

Health Insurance

Out of the combined employer and employee social security contributions of 18.5%, 2.5% is sent to the National Health Insurance Authority(NHIA) for the member’s health insurance.

The National Health Insurance program provides a range of healthcare services free of charge, including inpatient and outpatient services, emergency care, eye treatment, dental, and maternity care.

Other Insurances

Accident Insurance

Where an employee sustains a personal injury by accident arising out of, and in the course of employment, the employer is liable to pay compensation:

  • An injured employee should not suffer a diminution in earnings while they undergo treatment for injuries sustained through an accident arising out of and in the course of employment;
  • Where an attending medical officer assesses an incapacity in respect of an injured employee, the employer should pay the injured employee compensation commensurate with the incapacity so assessed.
Unemployment Insurance

There is no mandatory requirement for employers to purchase unemployment insurance in Ghana.

Public Pension

Out of the combined employer and employee’s social security contributions of 18.5%, 11% is used to finance pensions for old age, disability, and survivors, and 5% is used to finance the mandatory Second Tier Occupational Scheme, which is managed by Enterprise Trustees Limited.

To qualify for an old-age pension, the employee must be at least 60 years and have made a minimum aggregate contribution of 180 months (or 15 years).

Other Statutory Benefits

Emigration Benefit

Emigration benefit is a lump sum payment of benefits to non-Ghanaian members of the Social Security Scheme whose services are ended and leaving Ghana permanently.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

 

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