Ghana PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Ghana without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Ghana, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Ghana labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Ghana. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Ghana - Country Overview
Ghana is a country in West Africa with a relatively high GDP in the region and has a rich and diverse range of natural resources. Manufacturing and trading of industrial minerals, hydrocarbons, digital technology goods, and automotive and shipping components are taking the country’s economy to new heights. Foreign trade is important to Ghana’s economy. It adds value to the country’s imports and exports, which equals 91% of its GDP. The country has introduced reforms to streamline bank credits in the private sector and develop the private sector. The country’s economy is expected to grow from 51.00 USD Billion in 2019 to 60.00 USD Billion in 2020.
English; Asante Twi
Unitary Presidential Constitutional Democracy
Employment Contracts in Ghana
Employees in Ghana can enter into at-will or fixed-term contracts. Contracts can specify weekly or monthly payments of remuneration. Agreements that mandate remuneration on a basis different from weekly or monthly at-will contracts.
An employment contract needs to be in writing for an agreement of 6 months or more, or for a period equal to 6 months or more. Within 2 months of the commencement of work, employers need to provide a written statement to employees about the main terms and conditions of the contract. Probation period is allowed.
Contracts for hiring casual workers need not be in writing. A casual worker must be paid a compensation that is equal to that of a permanent employee for the same work, provided same medical facilities, same overtime pay and, and also additional payment for coming to work in harsh weather conditions, if applicable.
A temporary worker who has completed a continuous 6 or more months of employment with one employer is treated as a permanent employee.
Working Hours in Ghana
Usually, the maximum daily work schedule comprises 8 hours per day and 40 per week. Employers need to allow employees a rest period of 48 hours every 7 days, and this is mostly on Saturday and Sunday. Night work is any work performed between 10 p.m. and 7 am. Pregnant women are not allowed to work in night shifts.
The Labor Act specifies that workers cannot work more than 8 hours during a day unless they are promised a fixed additional payment for overtime work. However, a fixed rate for overtime work is not stipulated. Generally, the payment for overtime is 150% of an employee’s regular pay for work done on weekdays and 200% of the regular payment for overtime during a weekend.
Employee Leave in Ghana
The government has listed 13 public holidays in Ghana. Employers need to provide paid leaves to employees on these days:
- Jan. 1: New Year’s Day
- March 6: Independence Day
- Good Friday
- Easter Monday
- May 1: May Day
- May 25: Africa Unity Day
- July 1: Republic Day
- Sept. 21: Founder’s Day
- Dec. 1: Farmers’ Day
- Dec. 25: Christmas Day
- Dec. 26: Boxing Day
Additionally, the two Muslim holidays that occur on different days each year are also observed:
If an employee has completed a minimum 1 year of uninterrupted service, a minimum 15 days of paid leave can be taken. An employee can go on annual leave all at once or split equally.
Pregnant employees are entitled to 34 weeks of maternity leave. The duration of leave is increased to 37 weeks in case of single mothers and to 43 weeks in case of multiple births. Employers are not required to pay compensation during the maternity leave since it is paid by the Social Insurance Agency.
Employees can take sick leave and pay according to the Labor Act, although the number of days or hours of sick leave that an employee may take during a year is not specified.
Employee Benefits in Ghana
Management of Pension and health insurance programs administered by a government agency called the Social Security and National Insurance Trust (SSNIT). The SSNIT runs the national pension allotment and takes the responsibility for registering beneficiaries, collecting contributions, investing funds, and dispensing benefits.
This Act has set up a contributory three-tier pension plan consisting of:
- a basic mandatory national social security
- an occupational pension scheme that is mandatory, fully funded and managed privately, and
- a voluntary fully funded personal pension plan and privately managed provident fund
To be eligible for invalidity pension, employees need to make contributions for 12 months within the last 36 months before the start of the invalidity.
The SSNIT provides coverage for the retirement of all the employees. Employers may provide supplementary retirement options that are specific to the industry or employer and come with a different set of eligibility criteria. Private insurance and pension services are also available.
To be eligible for superannuation pension, employees must be of a minimum 60 years of age and made contributions for 180 months (for 15 years) and 240 months (for 20 years). A member who is 55 years but less than 60 years of age receives a reduced pension, but a 60-year-old gets the full amount of pension.
The Survivors’ Lump sum benefit is payable to dependents of employees under the following conditions:
- The death of employee is before retirement, or
- Death of pensioner before attaining the age of 75.
The Workmen’s Compensation Act makes an employer liable to pay for compensation of employees for an injury caused during their work. Employers may not reduce those employees’ wages when they are receiving treatment for the injury. The payable compensation is commensurate with the estimated cost on account of incapacity. An employer also needs to pay the medical expenses that an injured employee suffers. If the injury leads to the death of an employee, the employer is required to pay 60 months of the employee’s earnings as compensation to the employee’s dependents.
A lump sum payment as emigration to non-Ghanaian employees enrolled in the Social Security Scheme is made when their services are over, and they need to leave Ghana permanently. Whether the member has reached the age of retirement or not, the benefit due to him/her will be paid as a lump sum to the employee.