How to hire and pay employees in Ghana

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Ghana Facts and Stats

Currency

Ghanian Cedi is the official currency of Ghana. Its currency symbol is GHS.

Employer Costs

Estimated at 13.5% of employees salary.

Languages

English is the official language of Ghana.

Population

The population of Ghana is 35 Million.

Payroll frequency

Employees are paid monthly.

Hiring

Grow your team in Ghana

No entity, no problem

To start growing your team in Ghana, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Ghana

Hiring in Ghana offers several distinct advantages and challenges that employers should consider. On the positive side, Ghana’s workforce is known for its strong educational background and proficiency in English, which can facilitate communication and reduce training time for expatriates. There is similarly a huge culture of punctuality and formal greetings catalysing a highly professional workforce. Additionally, the cost of labour is relatively lower compared to many Western countries, which can be financially advantageous for businesses. The country’s stable political environment and improving infrastructure also contribute to a favourable business climate. However, there are challenges to be aware of. For instance, navigating local labour laws and regulations can be complex, particularly for foreign companies unfamiliar with the legal landscape. Additionally, despite improvements, infrastructure in some areas may still pose logistical challenges, and the bureaucracy can sometimes be slow, impacting the speed of business operations. Finally, the local talent pool may be limited in highly specialized fields, potentially necessitating investment in training or seeking talent abroad.

Why Ghana is good for remote workers

Hiring remote employees in Ghana can be highly beneficial due to the cost-effectiveness of labour, access to a diverse and educated talent pool, and the flexibility to scale operations as needed. Remote work arrangements often enhance productivity by eliminating commute times and allowing for personalized work environments. Additionally, having remote workers in Ghana provides valuable local market insights, which can be crucial for businesses aiming to enter or expand in the West African region. Overall, remote hiring in Ghana offers a strategic advantage in terms of cost savings, operational efficiency, and market understanding.

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Employer Costs
Social Security Contributions:Employers must contribute 13% of the employee's gross salary to the Social Security and National Insurance Trust (SSNIT).
National Health Insurance Scheme (NHIS):Both employers and employees contribute 2.5% of the employee's gross salary.
Worker’s Compensation Insurance:Required to cover employees for work-related injuries or illnesses.
Employment

Probation

Probation: There is no standard probation period in Ghana, they are usually decided within the employment contract.

Emerald Technology can onboard employees in Ghana within 48 hours.

Restrictive Covenants

In Ghana, restrictive covenants in employment contracts must be carefully crafted to align with local labour laws and judicial standards. Here’s a look at their specific considerations:
Non-Compete Clauses: These clauses are enforceable in Ghana but must be reasonable in duration, scope, and geographical area. The restrictions should not unduly hinder an employee’s ability to earn a livelihood. Courts will generally enforce non-compete clauses if they protect legitimate business interests and do not impose excessive limitations on the employee’s future employment.
Non-Solicitation Clauses: Ghanaian courts recognize non-solicitation clauses, which prevent former employees from soliciting clients or customers of the former employer. These clauses should be clearly defined and reasonable in scope and duration.
Non-Disclosure Agreements (NDAs): NDAs are enforceable in Ghana to protect trade secrets and proprietary information. The agreements must be specific about what constitutes confidential information and the obligations of the parties.
Non-Disparagement Clauses: While not explicitly detailed in Ghanaian labour law, these clauses are generally enforceable as long as they are reasonable and do not infringe on freedom of expression.

Insurance
01.

Health Insurance:

In Ghana, the government has made significant efforts to expand healthcare access through the National Health Insurance Scheme, established in 2003 to make healthcare affordable and accessible to Ghanaians. This scheme covers all Ghanaian citizens and in order to access the benefits, registration must be completed. This scheme is funded through premiums, government contributions and a 2.5% VAT on goods and services. This makes services such as, outpatient and inpatient services, surgical procedures and essential medications accessible.

02.

Social Security Contributions:

Social security contributions in Ghana are managed by the Social Security and National Insurance Trust and the contributions cover pension benefits, disability benefits, survivor benefits and health insurance.Therefore, it is mandatory for all employees to contribute in the formal sector, and employees contribute 5.5% of their gross monthly salary while employers contribute 13% of the employee’s gross salary.

Leave Policy
01.

Maternity Leave:

Pregnant employees are entitled to a minimum of 12 weeks maternity leave (6 weeks either side of the birth). Employers are entitled to pay the full salary during this period.

02.

Paternity Leave:

Companies in Ghana are not required to provide any paternity leave for their employees. However, some companies will offer this as part of their benefits package, meaning the time and payment variations are dependent on the company.

03.

Parental Leave:

Parental leave is not mandatory in Ghana. However, companies may provide this and extra support as part of their benefits package. Alternatively, the employer may offer more flexible working hours to allow for easier childcare.

04.

Sickness Leave:

In Ghana, while the Labour Act does not specify the number of sick leave days, employees are typically entitled to paid sick leave as defined by their employment contract or company policy, and they must provide a medical certificate to justify their absence.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Ghana within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Notice Periods:

The minimum notice period is 14 days, increasing with extended lengths of employment.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

There is no mandatory severance pay in Ghana.

Time off

Statutory Time off

Minimum of 15 days PTO.

Public Holidays

  • 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
  • African Union Day
  • Republic Day
Emerald Technology can onboard employees in Ghana within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

The minimum wage in Ghana is 1.86 GHS an hour.

02.

Working Time and Overtime:

Employeess are expected to work 40 hours a week (5 days of 8 hours) Any hours worked beyond the 40-hour week should be paid at 150% of the standard pay rate.

03.

Salary Payments:

Employees are paid monthly.

04.

Bonuses in Ghana:

There are no mandatory extra salaries or bonuses in Ghana.

05.

Income Tax:

  • Up to 3,828: 0%,
  • 3,829 – 6,828: 5%,
  • 6,829 – 10,828: 10%,
  • 10,829 – 13,828: 15%,
  • 13,829 – 20,828: 20%,
  • 20,829 – 27,828: 25%,
  • Above 27,828; 30%.
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