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.

Currency: Ghanaian Cedi

Principal Language: English; Asante Twi

Government: Unitary Presidential Constitutional Democracy

Capital City: Accra

Major Cities: Kumasi, Sekondi-Takoradi

Employment Contracts

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.

Work/Time Regulations

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.


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:

  • Eid-al-Fitr
  • Eid-al-Adha

Annual Leave
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.

Maternity Leave
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.

Sick Leave
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.


Pension and Social Security
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

Invalidity Pension
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.

Old-Age Pension
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.

Superannuation Pension
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.

Survivors’ Benefit
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.

Workers’ Compensation
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.

Emigration Benefits
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.

How GPS can Help

With our Global PEO/Employer of Record services, companies can expand into Ghana and hire their employees without having to establish a branch office or subsidiary in Ghana.

  • Your candidate is hired via our Ghana PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services.
  • Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll - all in full compliance with Ghana laws.
  • Global PEO Services experts manage all day-to-day operational issues such as employee expenses, and severance/termination if required.
  • With no contractor risks, pass on the compliance burden to Global PEO Services.

Spin Off/M&A Support

  • Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.

24/7 Support in 150+ Countries

  • Empower your teams with 24/7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
  • We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.

Easy Visibility into Your Employee Time & Attendance and Benefits Data
With our Global PEO, you get access to Mihi, our proprietary SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.

Ready for Growth When You Are
When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services.

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