If you want to start a new business or expand operations in Ghana, this is the right time!

Ghana has a GDP of $76.37 billion, almost $27 billion more than what it was in 2015. It showcases an exceptional growth rate since 2019. In the second quarter of 2024, the country’s economy grew by 6.9% year-on-year, followed by 7.2% YoY in the third quarter.  

The West African country has shown significant economic development since 2005. Its GDP per Capita is at an all-time high, at $2260 as of 2023, significantly more than neighbouring countries like Senegal ($1745,97) and Nigeria ($1621.12).

Ghana has a population of 34.8 million, of which 58.6% live in urban areas. This shows that the country has a good infrastructure for foreign businesses. Additionally, the country boasts a 14.84 million labor force, 5.7% more than in 2020. Ghana has been maintaining a low unemployment rate since 2017. As of 2024, its unemployment rate is 3.75%.

The country offers multiple cost benefits to businesses. For example, the median monthly salary in Ghana is $359, which is quite low compared to other regional countries like Morocco ($1,910), South Africa ($1,712), Nigeria ($729), and a few others.

Ghana offers abundant raw materials like gold, oil, gas, etc., and has a politically stable environment for businesses to sustain and flourish. The country offers better safety and security than other Sub-Saharan locations and offers a high level of protection to local and foreign investors. 

So, if you’ve decided to expand your business in Africa, especially in West Africa, Ghana would be an ideal place. However, what’s not ideal is you going all by yourself to manage your business in Ghana. 

A better way would be to work with a reliable PEO in Ghana who knows the country’s culture, workforce demographics, and, more importantly, the local laws governing its labor market. In this post, we shall discuss why working with PEOs in Ghana is important and how they can help you create a fast-growing yet sustainable business.

What is a PEO in Ghana?

Professional Employees Organizations (PEOs) essentially provide HR and administrative support to businesses. These platforms are suitable for foreign businesses and those going through the initial phase. 

In circumstances when businesses wish to reduce expenditures, PEOs come in handy. They support businesses in the following ways:

  • Payroll processing
  • Talent management 
  • Employee onboarding 
  • Employee training, development, and offboarding 
  • Tax calculation
  • Employee benefits calculation 
  • Legal compliance 
  • Handling grievances
  • Ongoing HR support

Businesses often seek PEO assistance while undergoing expansion, especially in foreign countries. As dedicated HR and administration support, PEOs operating in a particular region know their legal and tax regulations, culture, and workforce diversity. 

Therefore, working with a reliable PEO company often results in significant financial gains, growth, and sustainability.

Critical Functions Performed by PEOs

While PEOs may differ based on services, the following services remain common among all of them:

  • HR Support: Offering tools, resources, and advice on employee management and performance tracking.
  • Compliance: Ensuring adherence to local labour laws, tax regulations, and employment standards, reducing the risk of penalties.
  • Employee Management: Managing recruitment processes, drafting employment contracts, and onboarding new hires.
  • Payroll Management: Handling payroll calculations, tax withholdings, and timely salary disbursements.
  • Benefits Administration: Providing access to comprehensive employee benefits such as health insurance, retirement plans, and wellness programs.

Start hiring with an Ghana PEO

Let us handle the complexities of hiring, compliance, and payroll in Ghana while you focus on growing your team.

  • Hire employees in Ghana with a 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
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Why You Need an Experienced PEO in Ghana

As a new business entering Ghana, it must understand and comply with the country’s rules and regulations. In this context, working with a professional can not only save time, cost, and effort but will also ensure smooth business operations. 

A PEO in Ghana can guide you through every step, from registering your business to managing employees and their payrolls and calculating taxes, pension funds, and other remunerations according to local regulations.

Registering a Business Entity in Ghana

Your PEO in Ghana will help you register your Business Name along with the business type. They can guide you through the entire process, including:

  • Form selection
  • Fee schedule
  • Form submission, etc.

However, the process can be complicated because of the technicalities involved in every step. 

For example, the Office of Registrar of Companies published necessary information and instructions pertaining to the business registration process, new forms and amendments in the old filing systems, and the revised fee structure. 

However, the amount of information can be overwhelming for people with no prior knowledge. This is where a PEO in Ghana can make the entire registration process easier and hassle-free.

Changes in Labour Laws in Ghana

The Ghanaian government has enforced major changes in its Labour Bill 2024. These amendments deal with employee leaves, contractual obligations, gender equality, income tax deductions, and other areas. Some important changes include:

1 Parent Leave

Maternity leave has been revised to 14 weeks instead of 12 weeks. Male employees can also take a 5-day annual paternity leave within three months from the birth of their child.

2 Overtime Leave

Employers will be prohibited from assigning overtime to pregnant employees or mothers of children under one year of age.

3 Gender Equality

According to the Affirmative Action (Gender Equality) Act, 30% of the employees in any local organization should be women. This target will increase to 35% by 2028 and reach 50% by 2030. Upon failure to comply with the provisions, employers may face penalties and imprisonment of up to 12 months.

4 AI-assisted Recruitment

The Ghana Protection Act 2012 allows potential candidates to request scrutiny for decisions involving rejections, shortlisting, or hiring. Candidates can enquire whether the decision was made solely by an AI-assisted system or by humans.

5 Income Tax

In 2023, the Ghana Revenue Authority (GRA) implemented the Income Tax (Amendment) Act, introducing an additional tax band of 35% on employees earning over GHS 50,000 per month. Moreover, additional taxes have been implemented on extra perks, such as cars, fuel, etc.

In connection with these, there have been quite a few amendments employers need to be aware of. 

It’s a difficult job to understand and follow all these amendments without technical expertise. That said, an experienced PEO in Ghana can take care of this aspect, ensuring compliance and protecting your rights at the same time.

Fair Remuneration

Ghana’s Labour Act, 2003 is quite comprehensive, detailing all the duties and liabilities with respect to employee management and remuneration. The law is quite strict with respect to fair remuneration, equal pay, and prohibited and permitted deductions. It also protects the rights of the employees and entitles them to complain against unlawful deductions made by the employer.  

Being fully aware of the law, a reliable PEO in Ghana will calculate wages, ensuring every employee gets fair remuneration according to their work. They will also calculate deductions and resolve grievances on behalf of their clients.

Payroll Management

Payroll management is an integral part of the service package the PEOs in Ghana offer. They keep themselves updated with the latest regulations, for example, revisions concerning minimum wage and employee contributions associated with it. 

Ghana has updated its national minimum wage for 2026. Now, Ghanaian workers must receive a minimum daily wage of GHS 21.77  (approximately USD 2.05) and a minimum monthly wage of GHS 587.80 (approximately USD 55). Statutory monthly contributions are calculated at 18.5%, resulting in a minimum employee contribution of GHS 108.80 per month.

The PEO in Ghana has the expertise to calculate these amounts accurately, ensuring compliance with the fair remuneration act. Apart from monthly contributions, your PEO in Ghana will also calculate extra deductions pertaining to employees’ additional perks.

For example:

  • A 5% extra deduction (up to GHS 625 a month) is imposed on employees who receive vehicle or fuel-only benefits from the company.
  • 10% of the total emoluments (up to GHS 1250 per month) is imposed on employees enjoying both vehicles and fuel benefits.

Employer of Record

Only a licensed PEO can provide Employer of Record (EOR) services in Ghana. EOR allows you to set up a legal entity in Ghana. In this setup, the PEO will provide every kind of HR support. 

The good thing is that you can start hiring without waiting for your business to be established. Moreover, you’re not required to maintain a local office, as the PEO will take care of employee management and HR support. 

For new businesses and startups, EOR services help reduce overhead costs. Plus, your PEO will also draft employment contracts in both English and the official Ghanaian language.

Co-Employer

In simple words, it’s a co-employer arrangement that renders partial ownership to the PEO.

  • As a business owner, you’re in complete control of the organization’s overall operations, strategic planning, and decision-making.
  • The PEO will be responsible for administrative tasks, including payroll processing, compliance, employee benefits, tax deductions, and other related activities.

In sum, the business retains authority over the operations while benefiting from the skills and resources provided by the PEO.

What Services are Provided by PEOs in Ghana

Here are the key services PEOs provide all over Ghana:

Payroll Processing

It involves calculating basic monthly salaries, pension contributions, income tax deductions, and other statutory deductions.

Employment Contracts

The labor laws in Ghana require documentation and compliance with employment standards. PEOs draft employment contracts in line with the legal requirements.

Employee Benefits Administration

PEOs in Ghana look after employee health insurance, retirement plans, and wellness programs and offer customized packages to meet the local requirements in different regions.

Recruitment and Onboarding Support

PEOs can help you find the top talent with their extensive network. Their responsibilities involve conducting background checks, pre-employment screening, skill development, orientation and onboarding.

Different Pricing Models for PEOs in Ghana

PEOs follow different pricing models based on your requirements. Some charge flat fees for their services, while others may charge on a percentage basis. Below is a complete breakdown of different pricing models followed by the PEOs in Ghana:

  • Flat Fee Per Employee: The PEO will charge a flat fee per employee for all the services applied to each employee on the payroll. It’s an easier approach and suits smaller teams.
  • Percentage of the Total Payroll: This model involves charging a certain percentage of the total value of the payroll. This model is best for companies with stable salary expenses or where the employee salaries are fixed.
  • Bundled Pricing: You can get a set of services (payroll processing, employee benefits calculation, legal compliance) at a fixed fee. This model is often cheaper than tired pricing or the flat-fee-per-employee model.
  • Tiered Pricing: Some PEOs charge based on the number of services required by the business. It’s more flexible compared to the above model.
  • Pay-as-you-go Model: This model is best for long-term projects that need ongoing support. You only pay for the services you use – only when you need them.

Expand Your Business in Ghana Wisely with the Best PEO

Ghana showcases lots of attractive features for launching business operations. The labour is cheap, and the infrastructure is ideal for investment. However, establishing a business or expanding it in Ghana on your own can be challenging.

The Ghanaian rules and regulations are strict and quite complicated, too. So, you need a professional to deal with HR and administrative tasks, liberating you to focus on core operations.

Unsure which PEO to pick in Ghana? Contact Remote People, your trusted PEO, to be the best solution for your business. We provide top-rated PEO services that help unlock your business potential in Ghana. Reach out today to get started!

Frequently Asked Questions

Yes, you can! Your PEO in Ghana will only take care of the administration and HR. Meanwhile, you will have full control over your business, making strategic decisions, planning agendas, and utilizing the workforce.

It depends on multiple factors, including the services you need, the size of the workforce, and the pricing model the PEO follows. Due to these factors, the price of PEO services varies from one to another.

PEOs provide a wide range of employee benefits, including retirement plans, health insurance, medical benefits, paid leaves, and more. These benefits are customized according to the client’s requirements.