Hire in Ghana
Here’s your starting point for implementing human resources best practices and managing hiring processes in Ghana.
Currency of Ghana
The Capital of Ghana
Time Zone in Ghana
Important Facts About the Country of Ghana
Introduction to Ghana
Ghana, officially recognized as the Republic of Ghana, is located in West Africa. It stands as the second-most populous nation in the region, following Nigeria, with a population of around 32 million individuals. The capital and largest city of Ghana is Accra. Known for its multiculturalism, Ghana hosts a rich diversity of languages and religious communities. The country sustains a dynamic economy bolstered by abundant natural resources, leading to one of the highest GDP per capita rates in West Africa.
What to Know about Ghana’s Geography
Encompassing an expanse of 238,535 square kilometers, Ghana encompasses diverse biomes, spanning from coastal savannas to tropical rainforests. It shares borders with Ivory Coast to the west, Burkina Faso to the north, Togo to the east, and is flanked by the Gulf of Guinea and the Atlantic Ocean to the south.
Climate in Ghana
Ghana’s climate is tropical and significantly affected by the West African monsoon winds. It tends to be mild, characterized by seasonal temperature fluctuations that vary with elevation. Normally, the northern region of the country encounters a solitary rainy season extending from May to September.
The Culture of Ghana
Ghana boasts a richly diverse culture, housing individuals from various ethnic backgrounds. With a deep-rooted history of storytelling often intertwined with music and dance, the country pulsates with cultural vibrancy. Ghana is celebrated for its strikingly colorful and elaborately patterned textiles, symbolizing its cultural richness and artistic finesse.
Religions Observed in Ghana
Christianity dominates as the most prevalent religion in Ghana, with over 70% of the population adhering to various Christian denominations. Islam, on the other hand, is practiced by roughly 20% of the country’s inhabitants.
Languages Spoken in Ghana
English serves as the official language of Ghana, while Ga, Dagomba, Akan, and Ewe are among the widely spoken local languages in the country.
Ghana’s Human Resources at a Glance
Employment Law Protections in Ghana
The main legal frameworks overseeing employment relationships in Ghana consist of the Labour Act of 2003 and the Labour Regulations of 2007, complemented by other essential legal sources.
- Constitution of Ghana
- Legislation on National Pensions
- Regulations on National Health Insurance
Employment Contracts in Ghana
Although a written employment contract may not always be obligatory, it becomes necessary if the employment extends beyond six months. The following particulars must be documented:
1. Names of both employer and employee
2. Appointment date
3. Job title and grade
4. Payment rate, method, and intervals
5. Working hours
6. Holiday pay duration and specifics
7. Terms regarding sickness or injury, including sick pay details
8. Social security or pension scheme information
9. Termination clauses
10. Applicable disciplinary rules
11. Dispute resolution procedures
12. Overtime payment details
Ghana's Fixed Term Contract Terms
In Ghana, fixed-term contracts are typically permissible. The Labor Act of the country neither prohibits the employment of individuals for specific timeframes nor stipulates a maximum duration for fixed-term contracts.
Pre-Employment Checks
Employers have the authority to conduct pre-employment background checks, encompassing verification of identity, residential history, employment background, educational/professional credentials, professional qualifications, and personal references.
Ghana's Guidelines Regarding Probation Period/Trial Period
The Labor Act does not prescribe a maximum probationary period, but it can be established in the collective bargaining agreement. This probationary period must be both reasonable and predetermined.
Regulations and Rules Regarding Working Hours in Ghana
As per the Labor Act, the maximum standard working hours per day stand at eight hours, or 40 hours per week. Although the law allows for adjustments based on various job types, the average number of hours worked by each employee over a four-week or one-year period must still adhere to eight hours per day or 40 hours per week. Any additional hours worked beyond this standard may be considered overtime and should be compensated accordingly at an overtime rate.
Employees are entitled to a 30-minute rest period if their regular work hours are continuous. In cases where the standard hours are divided into two segments, the break should not be less than one hour and should not be counted as part of the regular working hours. Additionally, if an employee works the standard hours for seven consecutive days, they must take a continuous 48-hour rest period.
Ghana's Laws Regarding Overtime
In Ghana, the law does not outline specific rates for overtime compensation. Rather, these rates are typically determined within the employment contract or collective agreement. Usually, overtime hours are remunerated at 150% of the regular hourly wage.
Employees cannot be compelled to work additional hours unless the company has established overtime payment rates. Furthermore, even if employees consent to working extended hours, they cannot waive their entitlement to receive overtime compensation.
Termination
In Ghana, termination and dismissal carry distinct meanings. Termination is unrelated to disciplinary actions, while dismissal pertains to such actions.
For an employer to dismiss an employee, there must be a just cause. This implies that the grounds for dismissal must be reasonable and in accordance with the Labor Act or a fair procedure. The Act specifies certain circumstances under which an employee’s dismissal will be deemed fair, such as incompetence, lack of qualifications for the job, or misconduct.
Conversely, an employment contract can be terminated without cause. Employers retain the legal right to terminate an employee’s contract at any time and for any reason, provided they give adequate notice or pay the employee’s wages in lieu of notice as stipulated in the employment contract. The employer is not obliged to furnish a reason or justification for the termination.
According to the Labor Act, unfair termination may transpire if an employee is terminated based on factors like refusal or insistence to join a union, gender, race, ethnicity, color, origin, creed, social status, economic status, political affiliation, pregnancy, disability, or temporary illness.
Ghana's Requirements Regarding Notice Periods
Employees must receive written notice of termination, with the notice period contingent on the duration of the employment contract:
- – Contracts lasting three years or more: One month’s notice (or payment equivalent to one month’s salary in lieu of notice).
- – Contracts shorter than three years: Two weeks’ notice (or payment equivalent to two weeks’ salary in lieu of notice).
- – Weekly contracts: Seven days’ notice.
Redundancy/Severance Pay in Ghana
The Ghanaian Labor Act permits compensation upon termination of employment, excluding dismissals. Employees made redundant are entitled to redundancy pay in addition to existing benefits, except for temporary, probationary, or temporary workers. The amount and terms of redundancy pay are subject to negotiation among the employer, employee, and employee’s union representative.
For terminations unrelated to redundancy, employees are entitled to payment for:
- – Earned remuneration until termination
- – Deferred payments due until termination
- – Compensation for sickness or accident
- – Journey and repatriation expenses for the employee and their family (for foreign contracts)
- – Accrued leave entitlements
However, employees terminated by dismissal are ineligible for employer grants and benefits.
Post-Termination Restraints/Restrictive Covenants
Typically, agreements that restrict former employees from competing, soliciting clients, or conducting business with clients are deemed void and unenforceable. However, they may be enforceable if they serve a legitimate employer interest, are fair, and are in the public interest.
There is no set timeframe established by law for these agreements. Instead, each case is assessed individually by the court to determine a suitable and acceptable duration for the agreement to remain in force.
Data Protection
In accordance with the Data Protection Act of 2012, employees are entitled to privacy, and employers must respect the confidentiality of their personal data. Accessing or disclosing such data necessitates prior consent from the employee.
Tax and Social Security Information for Employers in Ghana
Personal Income Tax in Ghana
In Ghana, residents are taxed on their worldwide income. Employers are tasked with deducting the monthly Pay As You Earn (PAYE) at the source. The rates for monthly PAYE deductions are determined as follows:
| Monthly Chargeable Income (GHC) | Tax Rate (%) |
|---|---|
| First 402 | 0 |
| Next 110 | 5 |
| Next 130 | 10 |
| Next 3,000 | 17.5 |
| Next 16,395 | 25 |
| Next 29,963 |
30 |
| Exceeding 50,000 | 35 |
Non-resident individuals are typically subject to taxation at a fixed rate of 25%.
Social Security in Ghana
The management of Ghana’s Social Security and National Insurance system falls under the jurisdiction of the Social Security and National Insurance Trust (SSNIT).
Both employees and employers are mandated to make contributions to SSNIT. Employees contribute 5.5% of their basic salary, while employers contribute 13%.
Furthermore, Ghana offers a voluntary provident fund scheme, enabling both employers and employees to contribute up to 16.5% of the employee’s basic salary.
*The rates provided are general estimates. Actual rates may vary.
Important Information for Ghanaian Employees
Salary Payment
As per the Labor Act, employers are required to provide their employees with timely payment of wages, tendered in legal currency. Monthly remuneration is to be provided to employees engaged on a monthly basis, while weekly compensation is designated for those employed on a weekly basis. Additionally, the Act permits payment of wages in kind.
Payslip
While there is no legal mandate for employers in Ghana to furnish employees with payslips, it is encouraged as a best practice.
Annual Leave
Employees are granted 15 working days of paid annual leave for each year of uninterrupted service or for a minimum of 200 days worked within a year. The entitlement to paid annual leave cannot be relinquished, either through contract or any other means. This entitlement remains unaffected by public holidays, sick leave, pregnancy, childbirth, or authorized absences for communal work or civil duties.
In the event of an employee falling ill (with a medical certificate) during their annual leave, the duration of sickness will not be deducted from their annual leave entitlement.
Sick Leave
According to the Labor Act, employees retain the right to take leave from work for medical reasons validated by a doctor. However, the Act does not specify whether sick pay is guaranteed or the maximum duration of sick leave permissible.
Pregnant women suffering from pregnancy-related illnesses or confinement-related issues are entitled to paid sick leave.
Employers typically establish their own policies delineating the payment and duration of sick leave available to employees as part of their benefits package.
Maternity & Paternity Leave
Female employees are guaranteed a minimum of 12 weeks of maternity leave. To be eligible, a pregnant employee must furnish a medical certificate issued by a medical practitioner or midwife specifying the anticipated date of childbirth. Throughout the maternity leave duration, the female employee is entitled to receive her full salary and other associated benefits.
Public Holidays
Ghana observes a total of 13 public holidays.
Benefits to the Employee in Ghana
Ghanaian Statutory Benefits
Employees in Ghana have entitlements to social security insurance, annual leave, sick leave, and maternity leave as stipulated by law.
Other Benefits
Apart from mandated benefits, employers frequently provide bonuses, private health insurance, life insurance, allowances, and extra leave like paternity leave.
Rules Regarding Visas and Foreign Workers in Ghana
General Information
Visas
While citizens of some African nations can enter Ghana visa-free for up to 90 days, most international visitors require a visa for entry.
Various types of visas are available depending on nationality and availability, including embassy visas, visa on arrival, and eVisa. Additionally, a valid passport or travel document is necessary. Single-entry visas are valid for 90 days after issuance and should be applied for no more than 30 days before departure.
Work Permits:
Foreign nationals seeking employment in Ghana may obtain authorization through either a short-term or long-term work and residency permit or by utilizing the Ghana Investment Promotion Centre’s (GIPC) automatic immigration quota.
In both cases, the employing entity must apply for and sponsor work authorization for foreign employees, and the sponsoring entity must be registered in Ghana.
When applying for work authorization, certain constraints apply to the types of positions a foreign individual may hold. The position must be highly specialized and require expertise not readily available among Ghanaian residents. Resident labor market tests are typically required to identify these gaps and determine the specific position the foreign expert is needed to fill. However, such tests are not necessary for GIPC automatic quota applications, as the entity receives a predetermined number of automatic quotas based on its investment in Ghana.
The GIPC automatic immigrant quota is an indefinite work permit slot allocated to companies registered with the GIPC. The number of quotas available to a company is determined by the amount of foreign equity or capital invested in the company’s operations in Ghana. Once a company is granted permission to use its quota to hire a foreign national, the GIPC requests that a residence permit be issued in the employee’s name.
Public Holidays Recognized by Ghana in 2024
| Occasion | Date | |
|---|---|---|
| 1 | New Year’s Day | January 1 |
| 2 | Constitution Day | January 8 |
| 3 | Independence Day | March 6 |
| 4 | Good Friday | March 29 |
| 5 | Easter Monday | April 1 |
| 6 | Eid al-Fitr* | April 10 |
| 7 | May Day | May 1 |
| 8 | Eid al-Adha* | June 17 |
| 9 | Founders’ Day | August 5 |
| 10 | Kwame Nkrumah Memorial Day | September 23 |
| 11 | Farmers’ Day | December 6 |
| 12 | Christmas Day | December 25 |
| 13 | Boxing Day | December 26 |
Religious holidays are typically confirmed closer to the date as they rely on the sighting of the moon.
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