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). Ghana is recognized for its relatively business-friendly regulatory environment in West Africa, with streamlined company registration through the Registrar General Department.

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 a 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.

Start hiring with a Ghana EOR

Africa’s rising tech hub with SSNIT, NHIL/GETFund contributions, Ghanaian Labour Act, and Accra’s growing digital ecosystem.

We handle employment contracts, payroll, social contributions, and full Ghanaian compliance.

No local entity needed. Your team can start in days.

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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.

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.

Overtime

Overtime work must be voluntary and agreed upon between the employer and employee. The Act does not prescribe a maximum number of overtime hours per week but requires that any arrangement be reasonable and mutually agreed. Overtime is compensated at the following rates:

When WorkedRate
Weekdays150% (time-and-a-half)
Weekends200% (double time)
Public Holidays200% to 300% (varies by agreement)

Public Holidays

Ghana observes 13 public holidays annually, as gazetted under the Public Holidays Act, 2001 (Act 601) and administered by the Ministry of Employment and Labour Relations. When a public holiday falls on a weekend, the following Monday is typically observed as the substitute holiday.

  • New Year’s Day (1 January)
  • Constitution Day (7 January)
  • Independence Day (6 March)
  • Good Friday (varies)
  • Easter Monday (varies)
  • May Day / Workers’ Day (1 May)
  • African Union Day (25 May)
  • Eid al-Fitr (varies)
  • Eid al-Adha (varies)
  • Republic Day (1 July)
  • Founder’s Day (21 September)
  • Farmers’ Day (first Friday of December)
  • Christmas Day (25 December)
Boxing Day (26 December) is also commonly observed. Islamic holidays (Eid al-Fitr and Eid al-Adha) are confirmed annually based on the lunar calendar.

Social Security Contributions

Ghana’s social security system is administered by the Social Security and National Insurance Trust (SSNIT) and governed by the National Pensions Act, 2008 (Act 766). It funds pensions, disability, maternity, and survivor benefits through a three-tier structure. The first two tiers are mandatory; the third tier is voluntary and allows employees to make additional private pension or provident fund contributions.

The total mandatory contribution is 18.5% of an employee’s basic salary, split between the employer and employee. Of this, 13.5% is allocated to the first tier (SSNIT) and 5% to the second tier (occupational pension 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.

Probation Period

Probation periods in Ghana can last up to 6 months under the Labour Act 2003 (Section 17). The duration must be specified in the employment contract. Three months (90 days) is common practice but is NOT the statutory requirement – the law allows up to 6 months.

Payroll and Employment Taxes in Ghana

Minimum Wage

Ghana national daily minimum wage is GHS 21.77 as of 1 January 2026 (up from GHS 19.97 in 2025, a 9% increase). This equates to approximately GHS 653/month (at 30 days) or GHS 566/month (at 26 working days). At current exchange rates (~GHS 16/USD), this is approximately $35-41/month.

Employer Social Security Contribution

Employers are required to contribute 13% of each employee’s basic salary monthly. This contribution is remitted directly to SSNIT and covers the bulk of the employee’s social security obligations. The employer bears this cost independently and it is not deducted from the employee’s salary.

TierAllocationRate
Tier 1SSNIT (pension, disability, survivors)8.5%
Tier 2Occupational pension scheme4.5%
Total Employer Contribution13%

Employee Social Security Contribution

Employees contribute 5.5% of their basic salary monthly, which is deducted at source by the employer before net pay is calculated. This amount is allocated entirely to the first tier.

TierAllocationRate
Tier 1SSNIT (pension, disability, survivors)5%
Tier 2Occupational pension scheme0.5%
Total Employee Contribution5.5%

Income Tax

Ghana’s personal income tax is governed by the Income Tax Act, 2015 (Act 896), as amended, and administered by the Ghana Revenue Authority (GRA). For salaried employees, tax is collected through the Pay As You Earn (PAYE) system, withheld by the employer each month and remitted to the GRA.

Resident individuals are taxed at graduated rates on their worldwide income. Non-resident individuals pay a flat rate of 25% on all Ghana-sourced income, with no graduated bands applied.

Monthly Income BandTax Rate
First GHS 4900%
Next GHS 1105%
Next GHS 13010%
Next GHS 3,166.6717.5%
Next GHS 16,00025%
Next GHS 30,52030%
Above GHS 50,416.6735%

Work Permits and Visas in Ghana

Foreign nationals intending to work in Ghana are required to obtain a work permit issued by the Ghana Immigration Service (GIS) under the Immigration Act, 2000 (Act 573). The permit is employer-sponsored, meaning the employing company is responsible for initiating and managing the application process on the employee’s behalf. Working without a valid permit is a criminal offence for both the employee and the employer.

Employers apply directly to the GIS and must submit the following documents as part of the application:

  • Valid passport of the foreign national
  • Signed employment contract
  • Company registration documents
  • Proof of the employee’s qualifications and credentials
  • Any additional documents requested by the GIS

Processing typically takes between 4 and 8 weeks from the date of submission, though timelines can vary depending on the completeness of the application and current GIS workloads. Work permits are generally tied to a specific employer and role, meaning a new permit is required if the employee changes jobs or is transferred to a different entity.

Ghana operates an Automatic Quota System (AQS) that allows foreign-owned or foreign-invested companies to employ up to 4 foreign nationals initially without seeking individual approval for each hire. This is intended to ease the setup process for new businesses entering the Ghanaian market. Once the quota is exhausted, employers must apply for additional permits on a case-by-case basis, with approval subject to demonstrating that the role cannot be filled by a Ghanaian national.

Employers are also required to comply with the Ghana Investment Promotion Centre Act, 2013 (Act 865), which sets out localisation requirements and restricts certain roles to Ghanaian citizens. Permit holders should ensure their permits are renewed before expiry to avoid penalties or disruption to employment.

Time Off and Leave in Ghana

Mandatory Leave Entitlements

Employees are entitled to a minimum of 15 working days of paid annual leave per year after 12 months of continuous service (Labour Act, Section 20). Leave accrues proportionally during the first year. Some collective agreements and individual contracts provide for additional leave based on seniority or job category.

Maternity Leave

Female employees are entitled to 12 weeks of fully paid maternity leave. At least 6 of those weeks must be taken after delivery. The employer is responsible for paying full salary throughout the leave period.

Where complications arise during or after delivery, or in the case of multiple births, an additional 2 weeks of leave may be granted. Upon returning to work, nursing mothers are entitled to 1 hour of nursing break per day until the child reaches 1 year of age.

Paternity Leave

Ghana has no statutory paternity leave under the Labour Act, 2003 (Act 651). Many employers voluntarily offer 3 to 5 days of paid paternity leave as a workplace benefit, with some collective bargaining agreements including specific provisions. Employees should refer to their employment contract or collective agreement for details.

Sick Leave

Under the Labour Act, 2003 (Act 651), employees in Ghana are entitled to paid sick leave. The Act does not prescribe a fixed number of days, instead requiring employers to grant a “reasonable” period of sick leave supported by a valid medical certificate from a recognised healthcare provider.

In practice, most employers offer between 5 and 15 days of paid sick leave per year, with the exact entitlement set out in the individual employment contract or collective bargaining agreement. Employers typically pay full salary for the duration of the sick leave period.

Employees on extended illness beyond their contractual sick leave entitlement may be referred to SSNIT for disability or incapacity benefits, depending on the nature and duration of the condition.

Bereavement Leave

There is no statutory bereavement leave in Ghana. Most employers provide between 3 and 7 days of paid leave following the death of a close family member, and many collective bargaining agreements include specific bereavement provisions. Employees should refer to their employment contract or collective agreement for details.

Terminations and Severance in Ghana

Termination

Either party may terminate an employment contract by providing written notice in accordance with the notice periods set out under the Labour Act, 2003 (Act 651). Summary dismissal without notice is permitted in cases of serious misconduct, wilful disobedience, theft, or fraud.

Employees who believe they have been dismissed without just cause may file a complaint with the National Labour Commission (NLC), which has the authority to investigate and mediate employment disputes. Severance pay is not a statutory requirement under the Labour Act, but may be applicable where provided for in a collective bargaining agreement or individual employment contract.

Notice Period

Notice period requirements in Ghana are determined by an employee’s pay frequency, not their length of service. The Labour Act, 2003 (Act 651) sets out the minimum notice obligations for both employers and employees.

Either party may terminate the contract without serving the notice period by making a payment in lieu of notice, equivalent to the wages the employee would have earned during that period. All notices of termination must be given in writing.

Employee TypeMinimum Notice Period
Monthly-paid1 month
Weekly-paid2 weeks
Daily-paid7 days
During probation7 days

Severance Pay

Ghana’s Labour Act, 2003 (Act 651) does not provide a universal statutory severance entitlement. Severance pay is primarily applicable in cases of redundancy, where a business closes or the requirement for a particular role is reduced. Employees dismissed for misconduct, those on probation, fixed-term contracts, or casual arrangements are generally not entitled to severance.

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.

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.

Frequently Asked Questions

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.