Ghana Employment Guide

Understanding Ghana's Minimum Wage Regulations

In Ghana, the statutory minimum wage is set at GHS 365.31 per month. This baseline compensation is mandatory for all employers and serves as a fundamental protection for workers across various sectors.

Personal Income Tax Structure

Ghana employs a progressive personal income tax system, with rates ranging from 0% to a maximum of 35%. The final tax liability is not solely based on income brackets; it is also influenced by personal circumstances such as marital status and the number of dependents. For instance, an employee with several children may qualify for significant allowances, effectively lowering their overall tax rate compared to a single individual with the same gross salary.

Employer Payroll Contributions

Beyond the employee's gross salary, employers in Ghana are responsible for social security contributions. These are typically calculated at 13.5% of the employee's salary and are directed towards the Social Security and National Insurance Trust (SSNIT), which covers pensions and other benefits. It is crucial for companies like SailGlobal to factor this into their total compensation planning to ensure accurate budgeting.

Standard Working Hours and Overtime Provisions

The standard workweek in Ghana is defined as 40 hours, typically spread over five days (Monday to Friday) with 8-hour workdays. Any work performed beyond these standard hours is considered overtime and must be compensated at a premium rate as stipulated by Ghanaian labor law. For example, a manufacturing company requiring staff to work on a public holiday would need to apply the legally mandated overtime multiplier to the base wage.

Please note that the figures provided are for general guidance. For a precise breakdown of all costs associated with an employment agreement in Ghana, we recommend consulting with SailGlobal's HR specialists for a tailored quotation.