Employer of Record (EOR) in Ghana

Employment Laws and Regulations in Ghana

Employment Contracts

Ghanaian employment law requires a written contract for any engagement lasting six months or more under the Labour Act 2003 (Act 651, Section 12). The contract must be in English and include all mandatory terms from Schedule I: job title, salary, workplace, working hours, leave entitlements, and termination conditions. The employer must provide a signed statement of particulars within two months of hire.

Employers can offer fixed-term contracts (defined end date) or indefinite-duration contracts (ongoing with notice for termination). The Labour Act recognizes four types: permanent, fixed-term, temporary (longer than one month but not seasonal), and casual (seasonal or intermittent, up to six months continuous).

Working Hours and Overtime

Ghana’s standard working week is 40 hours across five days, with an eight-hour daily cap under Section 40 of the Labour Act 2003 (Act 651). Employees get a minimum 48-hour weekly rest period (usually Saturday and Sunday) and at least 12 consecutive hours between shifts. Overtime pay is set by the employment contract.

Overtime and Premium Pay Rates

Under Section 35 of the Labour Act 2003, overtime rates are contractual rather than statutory, though most employers follow industry-standard multipliers. The following table shows the typical overtime pay structure in Ghana.

Overtime rates under Section 35 of the Labour Act are contractual, not statutory. Employer and employee negotiate rates within customary practice. Many employers use 1.5x for weekday overtime and 2x for rest days or public holidays. Managers and salaried professionals may be exempt from overtime by contract.

Minimum Wage

Ghana’s national minimum wage is GHS 21.77 per day as of January 1, 2026, a 9% increase from 2025’s GHS 19.97 (MyJoyOnline). The National Tripartite Committee (government, employers, and workers) sets the rate annually. Monthly, that’s approximately GHS 587.79 (27 working days).

The minimum wage applies uniformly across all sectors. The 2026 rate is recommended as tax-exempt to ensure workers keep the full benefit (Fair Wages and Salaries Commission).

Probation Period

The Labour Act 2003 sets no statutory maximum probation period. Industry practice typically uses 3–6 months (ICLG Ghana Employment Guide). The contract must state probation length and conditions for completion.

Probationary staff receive shorter notice periods (often one week instead of two). They have no right to redundancy pay under Section 65 of the Labour Act. Upon completion, workers move to full permanent status with all statutory entitlements.

Leave Entitlements

Ghana’s Labour Act 2003 (Act 651) mandates paid leave to protect employee rest and well-being. These entitlements are enforceable and central to employment. For details, see our guide to employee benefits in Ghana.

Annual Leave

Employees get 15 working days of paid annual leave after 12 months continuous service, per Section 57. Leave is paid at the ordinary rate (overtime excluded). Leave may carry forward by mutual agreement, though excessive carryover is uncommon.

Sick Leave

Ghanaian law sets no maximum for sick leave. Employees get paid sick leave with a medical certificate (typically needed after three consecutive days absent). Sick leave is at the full ordinary rate and separate from annual leave.

Maternity Leave

Female employees receive 12 weeks fully paid maternity leave under Section 56 (AfricaPay Ghana). Pregnancy or childbirth complications may grant an additional two weeks by medical certificate (14 weeks total). The employer pays, and dismissal for pregnancy is prohibited.

Mothers get one hour of paid nursing time daily until the child reaches 12 months. This counts as regular working hours.

Paternity Leave

Ghana’s Labour Act 2003 has no statutory paternity leave. The Revised Labour Bill 2024 (under parliamentary review) proposes 2–4 weeks paid (Lockton Global). Until it passes, paternity leave depends on contract or company policy.

Other Statutory Leave

Public sector bereavement leave is around 10 days, but the private sector has no statutory minimum. Marriage leave (2–5 days typical) and other special leave are negotiated by contract. The Labour Act doesn’t mandate separate religious holiday leave beyond the national holiday calendar.

Here’s a summary of Ghana’s statutory leave entitlements. Annual leave accrues after 12 months, while sick and maternity leave are available from day one.

Statutory Employee Benefits

Beyond leave, Ghanaian law requires employers to provide several non-wage benefits.

Employers must ensure employees have National Health Insurance Scheme (NHIS) coverage, funded through a 2.5% contribution integrated into the social security structure. The NHIS provides access to basic healthcare services across accredited facilities in Ghana.

Ghana operates a mandatory three-tier pension system under the National Pensions Act 2008 (SSNIT). Tier 1 (SSNIT) is a defined-benefit scheme funded by 13% employer and 5.5% employee contributions, Tier 2 is a mandatory occupational pension at 5% employer contribution, and Tier 3 is a voluntary provident fund, with total mandatory employer contribution of 18% of gross salary.

Employers are liable for compensation in cases of workplace injury or occupational illness under the Workmen’s Compensation Act 1987, with liability falling directly on the employer rather than through a separate insurance levy. Employees who have completed at least 12 months of continuous service are entitled to negotiated severance upon termination without cause, typically determined by collective agreement or individual contract terms.

Recent Regulatory Updates (2026)

Ghana’s minimum wage rose to GHS 21.77 per day in January 2026, up 9% from the prior rate. The SSNIT earnings cap increased to GHS 69,000 per month for 2026, affecting higher-paid staff (GroConsult).

The Revised Labour Bill 2024 (under parliamentary review) proposes statutory paternity leave (2–4 weeks), expanded protections for gig and remote workers, and stronger unfair dismissal remedies (Lockton Global). The Affirmative Action Act 2024 (passed, awaiting presidential assent) targets 30% female representation in decision-making roles by 2026.

Work Permits and Visas in Ghana

Work Permit Requirements

Who Needs a Work Permit

All non-Ghanaian nationals need a work permit from Ghana Immigration Service (GIS). ECOWAS nationals may have some exemptions for short-term work, but employment with a Ghanaian company typically requires a permit regardless (ICLG Ghana Corporate Immigration).

Eligibility and Required Documents

The employer submits the work permit application to GIS on behalf of the employee. Required documents are: valid passport, signed employment contract, police clearance, medical examination, and educational or professional qualifications. A Non-Citizen ID Card application is also needed (Ghana Immigration Service).

Processing Time and Validity

Work permits typically process in 4–8 weeks from submission to approval. Once approved, they’re valid for 12 months. Employees can start work while processing continues under employer sponsorship, but international travel requires the permit.

Renewal Process

Permits renew annually. Employers submit renewal papers to GIS 4–6 weeks before expiry, with an updated contract and payroll records. Work continues during renewal. Failure to renew risks fines and deportation.

Common Visa Types for Foreign Workers

Ghana offers several visa pathways with different eligibility and timelines. Note that Ghana doesn’t currently offer a digital nomad or freelance visa.

• Tourist Visa: Valid for 30–90 days; does not permit paid employment. Working on a tourist visa results in penalties and visa cancellation.
• Student Visa: Restricted to on-campus employment; external employment requires a separate work permit.

How an EOR Handles Work Permits

Your EOR acts as the official sponsoring employer for work permit applications. They collect documents (passport, medical exam, police clearance, qualifications), prepare the GIS application package, and submit it. They also track status and handle follow-up requests.

The work permit process adds 4–8 weeks to onboarding for non-Ghanaian staff but ensures immigration compliance. Your EOR handles all the administrative work, so your company doesn’t need to deal with Ghana’s immigration system directly.

Payroll, Taxes, and Social Security in Ghana

For details on Ghana payroll and tax requirements, including deadlines and withholding schedules, see our country-specific guide.

Employer Contributions

Ghana’s employer social security has two mandatory tiers: SSNIT Tier 1 and Tier 2 occupational pension. Contributions are a percentage of gross salary, capped at GHS 69,000 per month for 2026 (SSNIT).

Employee Contributions

Employees contribute 5.5% of gross salary to SSNIT Tier 1. This deduction comes out before income tax, lowering taxable income (PwC Ghana).

Income Tax

Ghana uses a progressive monthly PAYE tax system. Tax is calculated on chargeable income (gross salary minus 5.5% SSNIT contribution) (PwC Ghana). Non-residents pay a flat 25% on Ghana-source employment income.

Payroll Cycle

Payroll runs monthly with bank transfers due by the last working day. All payments are in Ghanaian Cedis (GHS). Employers remit PAYE to GRA by the 15th of the next month and SSNIT within 14 days of payment.

Payslips must show gross salary, SSNIT deductions, PAYE tax, and net pay. Using an EOR means the provider handles all payroll processing, tax remittance, and statutory reporting.

13th Month Salary and Bonus Pay

Ghana doesn’t require a 13th month salary or year-end bonus by law. Some employers offer these voluntarily as part of compensation or collective bargaining agreements, but it’s entirely optional.

If provided, the 13th month salary or bonus is subject to regular PAYE and SSNIT withholding like any monthly payment. Ghanaian law gives it no special tax treatment.

Cost of Hiring Through an EOR in Ghana

EOR Service Fees

EOR service fees typically range from $300 to $600 per employee per month, depending on your provider and support level. This flat fee includes employment contracts, payroll, tax withholding, SSNIT registration, statutory reporting, and compliance support.

Total Employment Cost Breakdown

Your total hiring cost includes the employee’s gross salary, mandatory employer social security, and the EOR’s monthly fee. Here’s an example for USD 2,000 monthly gross (roughly GHS 32,000 in April 2026).

Ready to hire in Ghana? We handle employment contracts, payroll, tax withholding, and compliance without needing a local entity. Your team starts within days.

Benefits of Using an EOR in Ghana

An EOR simplifies Ghana hiring by removing legal, administrative, and financial barriers. You hand off compliance to a specialist, so you can scale your Ghana team in weeks instead of months.

Onboard employees in 1–2 weeks without the 3–6 month timeline required to incorporate a Ghanaian subsidiary, allowing you to start building your team while competitors are still filing registration paperwork. The EOR maintains current knowledge of the Labour Act 2003, National Pensions Act 2008, Income Tax Act 2015, and SSNIT regulations, shifting compliance obligations to the EOR and reducing your exposure to penalties for late tax filing, incorrect SSNIT contributions, or non-compliant employment contracts.

Avoid incorporation fees (GHS 500–5,000), registered office costs, annual filing fees, and the overhead of in-house HR, legal, and accounting staff, as an EOR fee of $300–$600 per employee per month replaces multiple fixed operational costs. The EOR calculates PAYE income tax across Ghana’s graduated brackets, SSNIT Tier 1 and Tier 2 contributions, and net pay in GHS, with monthly payslips, tax certificates, and statutory reports delivered automatically.

Employment contracts include IP assignment clauses that transfer all work product rights to your company, with the EOR holding no claim to intellectual property created by employees working on your projects. Add or reduce headcount without restructuring a local entity, as the EOR handles onboarding, contract amendments, and offboarding for each change, including statutory notice periods and final pay calculations.

Benefit from in-country knowledge of Ghanaian labour customs, National Labour Commission dispute procedures, and sector-specific regulations, as the EOR navigates local requirements that foreign companies typically need external counsel to understand.

Accelerate your Ghana hiring.

Termination and Offboarding in Ghana

Notice Periods

Ghana’s Labour Act 2003 (Act 651) sets statutory notice periods based on contract duration and tenure under Sections 54–55. Either party may pay wages in lieu of notice if agreed, but the statutory period can’t be shortened unilaterally.

Just cause terminations (theft, violence, gross misconduct) don’t require statutory notice if documented and the employee gets a fair chance to respond. Mutual agreement can also shorten or waive notice if in writing.

During notice, employees stay entitled to full wages, benefits, and leave accrual. Your EOR calculates final pay (including accrued leave) within the statutory timeframe.

Severance Pay

Ghana’s Labour Act has no fixed severance formula. Severance is negotiated between employer and employee under Section 65 (Mondaq). If they can’t agree, the National Labour Commission arbitrates.

Calculation Method

Severance is negotiated based on years of service, reason for termination, final salary, and any collective agreement. Typically, it’s the last monthly gross salary times an agreed number of months per year of service.

For example, an employee with 5 years earning GHS 3,000 monthly might get 2 months per year of service, totaling GHS 30,000. But this is negotiable, and no statutory formula exists.

Caps and Exceptions

Ghana’s labour law sets no severance cap. Probationary staff, casual workers, and fixed-term contractors whose terms end without renewal have no severance right unless the contract says otherwise.

If disputed, the NLC can order back wages, reinstatement, or enhanced severance under Section 64. Your EOR ensures all termination payments comply with local standards and documentation.

Grounds for Termination

Employers can terminate on two grounds: just cause (misconduct, incompetence, breach of contract) and without cause (redundancy, business need). Just cause needs documented evidence and a fair hearing per Section 64.

Section 64 protects workers from termination based on union membership, pregnancy, political opinion, religion, gender, race, or disability. Discriminatory terminations lead to damages claims and reinstatement orders from the NLC.

EOR vs. Other Hiring Models in Ghana

EOR vs. Setting Up a Local Entity

An EOR handles legal employment, payroll, and compliance without local registration. A subsidiary requires months of admin work and ongoing overhead. Your choice depends on team size, timeline, and budget.

For 1–15 person teams or market entry, an EOR is much faster and cheaper. Setup means just employment agreements and SSNIT registration, done within days. No upfront costs, no local directors needed, no company dissolution costs if plans shift.

A local entity makes sense at 15+ employees or for government contracts requiring local registration. You get more HR control and brand presence, but face ongoing compliance work and exit costs.

Many start with an EOR to test the Ghana market, then move to a local subsidiary as the team grows. This phased approach cuts risk and keeps flexibility.

EOR vs. Hiring Independent Contractors

An EOR provides full-time employment with benefits and legal protections. Contractors are self-employed and handle their own taxes and insurance. Misclassification risk is significant in Ghana.

Misclassification is a serious risk. If tax authorities or the NLC decide a contractor should be an employee (based on exclusivity, control, duration), you face back PAYE, SSNIT contributions, and penalties. Use contractors only for defined projects with clear deliverables and end dates.

Our contractor solution simplifies engagement while keeping proper legal classification and compliance. For ongoing roles needing team integration and direct management, an EOR full-time hire is the compliant path.

EOR vs. PEO

A PEO co-employs, sharing responsibilities. An EOR is the sole legal employer. This structural difference affects liability, setup, and control.

Ghana doesn’t have a formal PEO framework like the U.S. Most providers operate as EORs or payroll processors, not co-employers.

An EOR is the preferred model for remote hiring abroad because it skips local entity setup, clarifies liability, and gives you control over terms under Ghana’s law. PEO arrangements only make sense if you already have an office and local presence.

Public Holidays in Ghana

Ghana observes 15 public holidays in 2026, including fixed dates and variable religious holidays. Employers must grant these as paid days under the Labour Act.

Public holidays affect payroll: employees are paid even if not working. Work on a public holiday means premium pay (typically 2x) or a substitute rest day. Your EOR accounts for holidays automatically in payroll and leave tracking.

How to Get Started with an EOR in Ghana

Hiring your first Ghana employee through an EOR is straightforward and takes one to two weeks.

• First, define the role, title, and salary for your Ghana hire. Ensure the monthly gross meets or exceeds Ghana’s minimum wage (GHS 21.77 per day as of 2026). Prepare a clear job description and compensation package.
• Second, engage an employer of record provider and provide candidate information, including name, address, start date, and salary. The EOR prepares an employment agreement compliant with the Labour Act 2003 and collects required documentation.
• Third, review and sign the employment agreement. The contract outlines salary, benefits, notice periods, grounds for termination, and compliance with Ghanaian statute. The candidate must also sign and retain a copy.
• Fourth, coordinate the first payroll. Provide the EOR with banking details, salary amount, and any onboarding bonuses. The EOR processes SSNIT registration and PAYE tax withholding automatically.
• Fifth, monitor ongoing compliance through the EOR’s reporting dashboard. Communicate any changes (salary adjustments, termination, leave) to the EOR. The provider delivers monthly payslips, statutory reports, and ongoing HR support.

Contact us today to start your Ghana team. We handle contracts, payroll, tax, and reporting so you can focus on business growth.

Where companies hiring in Ghana expand next

Companies building West African operations commonly expand across the ECOWAS bloc and neighboring Francophone and Anglophone markets. Common expansion paths include operations in Ivory Coast (the regional West African talent footprint) and Cameroon (overlapping West African workforce dynamics). Teams scaling further usually add hiring in Mali for shared West African labor and language overlap, with an EOR partner in Nigeria extending coverage through aligned West African hiring norms.