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Employer of Record in Ghana
Discover how partnering with a Ghana employer of record can simplify the hiring process and help you save on employment costs.
From $199/month per employee
Professional expansion into Ghana benefits all-sized businesses, from its political stability and affordable labor force to investing in booming sectors like energy and technology. Ghana has a relatively young workforce proficient in English, and its strategic location supports efficient trade and transit to the US and surrounding African countries. In addition to a qualified labor force, Ghana’s multi-party government has created a stable democracy.
Ghana’s economy is worth noting, with its 2024 GDP reaching $74.3 billion. According to the World Bank, Ghana achieved economic growth of 5.9% in the first quarter of 2024. Furthermore, Ghana has implemented fiscal policies to encourage future economic growth through private investment.
Hiring with an EOR in Ghana
Hiring in Ghana provides access to the West African gateway along with duty-free exports to the United States as per the African Growth and Opportunity Act (AGOA). Based on the “Ease of Doing Business Index” by the World Bank Group, Ghana ranked favorably for its friendly business environment and local regulations.
From its economic growth to its skilled workforce, Ghana offers local and international business opportunities. The West African country is rich in natural resources, such as oil and gold, and has attractive tax laws, making starting and operating a business easier. To help you hire a labor force in Ghana, you can partner with a professional Ghanaian Employer of Record (EOR).
To help you understand how a Ghanaian EOR works, this guide explores the benefits of partnering with an Employer of Record in Ghana, how to stay compliant, and how Remote People can support your hiring and expansion goals.
What is an Ghana Employer of Record?
A Ghanaian EOR acts as a legal employer of your workforce. Under Ghanaian regulations, the EOR company helps you hire a local labor force without setting up your own local entity. You remain the employer of your workers; however, the EOR assumes legal liability. A Ghana EOR firm performs onboarding, pays employee salaries, and withholds tax.
The Ghana EOR Maintains Compliance
In Ghana, an EOR supports quick and compliant hiring by assuming legal liability for your workforce. Because an Employer of Record in Ghana understands the Ghanaian Labor Act, they help your business follow laws that govern the employment relationship, from drafting employee contracts to offboarding.
The Ghanaian EOR Simplifies Hiring
The EOR firm in Ghana simplifies hiring by connecting client companies to skilled workers and assisting with written employment contracts. A Ghanaian EOR ensures that employees are given a probationary period of 90 days as required by the Labor Act. Based on the EOR’s knowledge of Ghana’s labor laws and employment practices, they can protect you from non-compliance and onboard your workforce in less than a week.
Ready to get started with a Ghana EOR?
Let us handle the complexities of hiring, compliance, and payroll in Ghana while you focus on growing your team.
- Hire employees in Ghana with an Ghana EOR
- No local entity is needed
- Pricing starts at USD 199 per employee
- Remote People can also help you find the best talent in Ghana
What is the Difference Between a Ghana EOR and a Ghana PEO?
In Ghana, a Professional Employer of Record (PEO) is often used interchangeably with an EOR, but there are differences in the services provided by each of these third-party providers, as discussed below:
Ghana Employer of Record (EOR)
An EOR company in Ghana can hire employees on behalf of domestic and foreign employers without the need for client companies to establish a local entity. The Ghanaian EOR serves as the legal employer and is responsible for registering employees for tax and statutory benefits, onboarding new workers, and adhering to employment regulations. An EOR in Ghana can benefit all-sized businesses and industries without a legal entity established in the country, including those looking to outsource payroll or avoid non-compliance risks.
Expanding into Ghana is easier when you have the right partner. Remote People simplifies the process by acting as your Employer of Record—giving you direct access to local hiring expertise, full compliance, and a faster path to building your team.
Ghana Professional Employer Organization (PEO)
The Ghana PEO is only suitable for companies that already have a local entity and want a third party to process payroll and file taxes. The Ghanaian PEO is an HR provider and serves as a co-employer of the company’s workforce.
The PEO firm assists with compliance, such as calculating and administering employee benefits on time. As the employer, you retain legal responsibility for your employees. Businesses in Ghana that benefit from PEO services include small to medium enterprises, startups, and those with little HR experience.
How Does a Ghana Employer of Record Work?
A Ghana Employer of Record establishes your workforce as per the Labor Act and will manage statutory deductions and labor filings as listed below:
- Employment contract: The EOR provider in Ghana will create a fully compliant employment contract covering working hours, salaries, job duties, and termination requirements. In Ghana, a written employment contract must be presented.
- Onboarding: An EOR in Ghana reduces the time and paperwork involved in onboarding. The professional EOR collects workers’ full names, physical addresses, and banking details to register employees for taxes and social security.
- Payroll: To ensure your employees are paid on time, the Ghanaian EOR manages the monthly payroll cycle. They will calculate leave and deduct tax and benefits so you can focus on core business functions. Regarding compliance, an EOR helps keep payroll records for up to six years, and they’ll issue an annual payroll report summarizing an employee’s wages, benefits, and deductions.
- Compliance: The EOR in Ghana oversees taxes by registering employees and filing a return of income with the Ghana Revenue Authority (GRA). Ghana EOR services include registering employees with the Social Security and National Insurance Trust (SSNIT) for social security contributions. Labor filings cover payroll records and reports for annual leave and benefits as per the Ghana Labor Act.
What Labor Laws Apply to Hiring in Ghana?
Hiring in Ghana requires compliance with a well-defined legal framework that governs employee rights, employer responsibilities, and statutory benefits. These laws are outlined in Ghana’s Labour Act, 2003 (Act 651) and additional regulations issued by the Ministry of Employment and Labour Relations. A qualified Employer of Record (EOR) helps ensure your company adheres to these requirements, handling employment contracts, social security contributions, leave entitlements, and workplace protections on your behalf. Below, we break down the key labor regulations every employer should know when hiring in Ghana.
Minimum Wage
Ghana’s monthly minimum wage is GHS 490.05 or $32 as of January 2024. Payroll in Ghana follows a monthly payment cycle initiated by the Ghanaian EOR.
Standard Working Hours
Ghanaian employees work for eight hours a day or 40 hours a week. Overtime is paid at a rate of 150% of the standard salary for weekdays and increases to 200% on weekends.
Employee Benefits
Employees are entitled to 15 days of fully paid annual leave. Expectant mothers are provided 12 weeks of maternity leave and daily nursing leave until their child turns one year old.
Social Security Contributions
Ghana’s social security system funds pensions, disability, maternity, and survivor benefits. It has three tiers, with the third tier being voluntary. The total contribution is 18.5%, with 13% paid by the employer and 5.5% by the employee. Of this amount, 13.5% goes to the first tier of the scheme, and the remaining 5% goes toward the second part of the scheme.
Employee Protections
Based on the Ghana Labor Act of 2003, all workers have the right to a safe environment. Ghanaian employees have the right to equal pay and to form trade unions. The chief labor officer must provide the union with a collective bargaining certificate before bargaining on behalf of employees.
For contract terminations, employees working for three or more years must receive one month’s notice. Either party can terminate the contract at any point, provided notice is issued.
What Are the Benefits of a Ghana EOR?
A closer look at the benefits of a Ghana Employer of Record can help you choose the best solution for your business:
- Quick market entry: Client companies can enter the West African market quickly with the expertise of a Ghana EOR provider because the Employer of Record guides you on the labor laws when hiring and operating a business. Without setting up a subsidiary, you can enter the African market in days, not weeks or months.
- Avoid entity setup costs: Because you can hire Ghanaian employees without an entity when you partner with an EOR service in Ghana, you save on the costs and time of registering a subsidiary.
- Management of HR and tax: You can delegate local HR functions to a professional EOR in Ghana to free up time and resources. The Ghana EOR firm will also handle tax complexities by performing the necessary deductions and tax filing.
- Overcome language and cultural barriers: English is the official language of Ghana, but there are approximately 80 native languages, the most common of which are Dagbeni and Akan. Fortunately, EOR services in Ghana can help you overcome language barriers and cultural differences by providing clear communication and an understanding of local business culture.
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Ready to simplify your hiring process in Ghana? Let us handle the complexities of compliance and payroll while you focus on growing your team.
What are the Downsides of a Ghana EOR
Consider the following potential limitations of a Ghana EOR provider when expanding in West Africa:
- Pricing: For some small to medium businesses and startups, the EOR rates can become substantial over time. By carefully assessing the EOR contract, you can avoid hidden or additional fees.
- Employer involvement: As the Ghana EOR takes over legal liabilities, the employer may have less direct involvement in local workforce decisions. However, entrusting services such as tax filing and payroll to the Ghanaian EOR frees up time to focus on business growth.
- Compliance: Without knowledge of Ghana’s labor laws, you are dependent on the EOR to remain compliant. The Ghanaian EOR must be reliable in keeping you updated on local laws and informing you of changes to prevent penalties.
How to Choose a Ghana EOR
To successfully hire a Ghanaian workforce, you need a professional EOR on your side. Understanding how to choose the right service provider can support your hiring efforts.
Market Expertise
A reputable EOR in Ghana will have thorough local market expertise, which means they can assist with hiring and expansion matters following the Ghana Labor Act.
Transparent pricing
A trusted EOR should not have hidden fees or additional charges that are unclear in the agreement.
References and track records
References from former clients and reviews on trusted websites help assess an EOR’s track record in the industry. Consider the Ghana EOR’s cultural alignment and the ease with which they can integrate your workforce.
Engage a Ghana Employer of Record with Remote People
Expanding your business in Ghana provides access to a stable political system, a growing economy, and emerging industries. Because of its hard-working labor force and business-friendly environment, Ghana is considered the best place in West Africa to do business.
If you’re looking to enter the Ghanaian market without setting up a local entity, a professional Employer of Record (EOR) is the ideal solution. A Ghanaian EOR assumes legal responsibility for your workforce, managing payroll, tax deductions, onboarding, contract terminations, and full compliance with local regulations.
Remote People acts as your trusted EOR in Ghana—streamlining the hiring process, ensuring legal compliance, and handling all administrative tasks so you can focus on growth.
When you’re ready to build your team in Ghana, partner with Remote People for a seamless and compliant expansion experience.
FAQs About Employer of Record Services in Ghana
Yes. Using an EOR is a legal and recognized method for employing workers in Ghana. The EOR acts as the legal employer, ensuring full compliance with Ghana’s Labor Act, tax codes, and social security regulations on behalf of your company.
Employers must contribute to the Social Security and National Insurance Trust (SSNIT) and withhold Pay As You Earn (PAYE) income taxes from employee salaries. A Ghana EOR manages these obligations to ensure timely payments and compliance with national tax laws.
Onboarding can typically be completed within one to two weeks, depending on the role and the documentation provided. The EOR handles everything from drafting compliant contracts to registering employees with tax and social security authorities.
Yes. Most EOR providers in Ghana support both remote workers and expatriates. They can assist with work permit applications, local compliance for foreign nationals, and ensure employment terms align with Ghanaian law.
EOR services are ideal for companies entering the Ghanaian market for the first time, businesses hiring for short-term projects, NGOs, tech firms, and organizations building remote or distributed teams. It’s a flexible, low-risk way to expand without setting up a legal entity.
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