Take steps to expand your workforce in Ghana by learning of mandatory benefits and perks to hire the most talented employees. 

Building your business in Ghana is more rewarding with access to tax incentives, affordable labor costs, and a youthful demographic eager to join the workforce. In the last decade, Ghana has attracted foreign direct investment (FDI) due to its natural resources in gold, oil, precious stones, and cocoa, with gold being its highest export in 2024 at $11.64 billion.

In addition to its resources, Ghana has stable governance with trade partners, including Switzerland, India, China, the UAE, and South Africa. According to the World Bank, Ghana had the fastest economic growth in West Africa before the pandemic. The country continues to show significant financial growth and resilience, with a GDP of $76.37 billion in 2023. 

There’s no doubt that Ghana has lucrative investment opportunities, but if you wish to expand your business in the West African country, you need to be aware of the Ghana Labor Act of 2003. Ghana’s Labor Act covers employment contracts, wages, and benefits. Employers are encouraged to understand the mandatory employee benefits in Ghana to provide top talent with valuable statutory and supplementary benefits solutions. 

Not only will you be equipped to offer skilled job candidates competitive salaries and favorable working arrangements, but it also ensures that you comply with Ghana labor laws. Non-compliance with these laws will result in penalties such as paying compensation to affected employees, being issued a fine of up to GHS 12000 ($774.19), and possible imprisonment. 

To ensure you remain compliant while building a motivated workforce, this guide breaks down mandatory Ghanaian employee benefits along with a brief overview of labor laws. Furthermore, it looks at how compliance and expansion can be simpler and more efficient with Ghana’s Employer of Record (EOR) services.

Ghana Labor Law

The Ghana labor law provides a legal framework that all employers must follow to secure the rights of their employees while facilitating the employment relationship. To get a better idea of the West African country’s labor code, a few of the labor laws are explained below:

Employment Contracts

Employment contracts in Ghana are guided by the Ghanaian Labor Act. It stipulates that any employees working for longer than six months receive a written contract in which the responsibilities of each party are clearly expressed. The employment contract must include the terms of employment, such as wages, working hours, annual leave, benefits, and procedures for contract termination.

Termination of Employment

Employers and employees can terminate the employment contract based on the conditions set out in the Ghana Labor Act. To end an employment contract, written notice must be given to the receiving party, depending on the length of service. For example, three-year employment contracts must receive one month’s written notice, while shorter contracts receive two weeks’ written notice.

Minimum Wage Law

Ghana’s national minimum wage was recently updated for 2026 under the Labour Act following a decision by the National Tripartite Committee. The daily minimum wage is GHS 21.77, which translates to approximately GHS 587.80 or $55 per month based on a standard 27-day working month.

Social Security Regulations

Ghana’s social security system consists of the Social Security and National Insurance Trust (SSNIT), which is guided by the National Pensions Act of 2008. This Act covers the loss of income resulting from disabilities, retirement, and death. This fund also provides an Emigration benefit to non-Ghanaian members who are going to leave the country permanently.

Leave Schemes

Ghana employees must receive yearly leave, maternity leave, overtime pay, and paid public holiday leave.

How to maintain compliance with Ghana labor laws

As a foreign business interested in hiring in Ghana, non-compliance with labor laws will lead to severe penalties. To ensure that your rights and those of your workforce are upheld, always rely on expert legal counsel. 

Alternatively, you can partner with a Ghana EOR to stay up to date on the country’s labor practices and regulations and ensure that you are implementing them correctly.

The additional benefits of EOR services include payroll management, the administration of employee benefits in Ghana, and the ability to hire employees without setting up a legal entity. 

Mandatory Employee Benefits in Ghana

To help you establish a compliant and motivated workforce in Ghana, consider the following mandatory employee benefits to include in the employment contract:

Social Security Contributions

The minimum contributions to be paid for social security in Ghana are based on the daily minimum wage rate of 18.15 GHS multiplied by 27. The maximum contribution to the SSNIT is 7020 GHS, while the minimum contribution is 66.16 GHS per month.

Annual Paid Leave

Once employees in Ghana have completed at least one year of service, they are entitled to 15 days of paid annual leave.

Working Hours

Ghanaian employees must work for 40 hours a week, which consists of eight hours a day for five days.

Overtime Pay

Hours that are worked outside of the standard 40-hour week must be paid at a rate of 150% of the employee’s standard hourly wage.

In Ghana, employees must be paid for public holiday leave. There are around 13 recognized public holidays in the country.

There is no requirement for sick leave as per Ghana labor laws; however, employers are encouraged to make the necessary provisions for paid time off when employees are ill. Any illnesses or injuries resulting from work-related duties are covered by the Workmen’s Compensation Law in Ghana.

Maternity Leave

All pregnant female employees are entitled to maternity leave of 12 weeks at full pay. The state does not fund maternity leave, instead, it must be paid by the employer.

Paternity Leave

Paternity leave is not permitted in Ghana.

Severance Pay

There are no mandatory regulations regarding severance payments in Ghana, but if employees are made redundant, they can receive redundancy pay. Employees can use their union representative to negotiate the rates for redundancy pay with the employer.

Supplementary Employee Benefits in Ghana

The supplementary benefits offered to employees in Ghana make for more attractive and satisfactory conditions because workers feel valued. Supplementary benefits or employee perks are not legally required; however, they consist of extras such as flexible working hours, severance pay, and life insurance to help employees manage their expenses and live more comfortably. 

For employers, these fringe benefits can be used as a negotiation tool to appeal to Ghana’s most talented job candidates, allowing you to present competitive offers to your potential workforce. A few of these benefits are explored below: 

  • Private Medical Insurance: All Ghanaians have access to the country’s National Health Insurance Scheme (NHIS); however, this also means long waiting periods to receive the necessary treatment and high costs for procedures such as dental care.

    A Ghana employer is encouraged to offer private medical insurance to employees to help them access quality clinical care quickly, which also means less downtime in the workplace due to public healthcare delays.

    Life Insurance: Ghana does not provide life insurance for employees; however, employers can purchase private life cover or make monthly contributions as an optional extra.
  • Flexible Working Arrangements: To create a healthy and satisfied workforce, you can give employees the option of flexible working hours provided they meet the statutory 40-hour weekly work requirement. Flexible work arrangements include working from home or taking a day off to tend to family matters.

The supplementary benefits must be stipulated in the employment contract.

Optimize Employee Benefits with RemotePeople

Expanding your business in Ghana means taking advantage of the country’s growing economy, strong mineral and oil exports, and low-cost labor force. Ghana is considered business-friendly for its tax incentives and options to expand in markets such as telecommunications, agriculture, mining, and property upon registering with the Ghana Investment Promotion Centre (GIPC). The GIPC further allows international companies to enlist with the Ghana Stock Exchange to attract a wider pool of investors. 

Fortunately, you can take advantage of Ghana’s reforms and market access by compliantly hiring a professional workforce. With the expertise of a Ghana EOR company, you can prevent breaking the labor laws and protect against harsh penalties. The EOR can advise on both mandatory and supplementary employee benefits in Ghana to attract the country’s most skilled job candidates while retaining a productive workforce. 

To make this process simpler and more cost-effective, get in touch with the professional team at RemotePeople. RemotePeople’s EOR services include assistance with payroll, compliance matters, and tailored employee benefits solutions. They bring a high level of experience and expertise to the fore, providing companies with unmatched international hiring and support. Most importantly, RemotePeople is here to help you expand your business in Ghana the right way.