As of March 2024, the estimated population of Ghana is 34.1 million.
The currency in Ghana is the Ghanaian Cedi (GHS). The currency symbol is GH₵ .
In Ghana, the Labour Act allows the use of fixed-term contracts for workers engaged in tasks of a permanent nature and does not mandate the use of permanent contracts in these instances. Under the law, temporary workers who are employed by the same employer for a continuous period of more than 6 months are considered as permanent workers if their contract fails to specify employment duration. A permanent contract can be terminated by giving notice to the other party.
The Labour Act in Ghana requires written contracts of employment for people employed for a period of 6 months or more or a number of working days equivalent to 6 months or more within a year. A contract of employment is to express in clear terms the rights and obligations of the parties involved. Employers must, within 2 months after the commencement of employment, provide the employee with a written statement of the main terms of the employment contract, including names of parties, date of the first appointment, job title, pay (including overtime rates), hours of work, holidays, sickness and work-related injury entitlements, social security or pension scheme enrollment, termination notice periods, disciplinary rules, and grievance procedures.
The labor law of Ghana distinguishes between temporary and casual workers. Temporary workers are defined as those who are employed for a continuous period of at least 1 month and are not permanent workers or those hired for seasonal work. Minimum provisions with respect to wage, hours of work, rest periods, paid public holidays, night work, and sick leave apply to temporary workers. If the temporary employment engagement exceeds 6 consecutive months, and the employment contract does not specify a duration, the worker is treated as a permanent employee. A contract of employment for a casual worker does not need to be in writing; however, the respective worker is entitled to: Equal pay for work of equal value for each day worked in the organization Access to necessary medical facilities made available to the workers generally by the employer Be paid for overtime work Be paid full minimum remuneration for each day on which the employee attends work, whether or not the weather prevents the worker from carrying on regular work and whether it is possible or not to arrange alternative work on such a day
In Ghana, the Labour Act does not contain explicit provisions or guidance regarding the maximum duration of probationary periods but references a “reasonable” period to be determined in advance. Probationary periods and conditions of probation may be provided for in collective agreements. However, when a probationary period is contractually required as a condition for employment, the contract must specify the duration of the probationary period for the employee. Employees dismissed during their probation are not entitled to any severance or redundancy payment. They can be dismissed without notice.
The labor law dictates that the standard working time is 8 hours per day or 40 hours per week. However, an organization may prescribe the hours of work differently, subject to the following: Where shorter work hours are fixed for particular days, other days may compensate proportionately, but not exceeding 9 hours a day or 40 hours a week. Where longer work hours are fixed for particular days, the average number of work hours over 4 weeks must not exceed 8 hours a day or 40 hours per week. A seasonal employee may work 10 hours daily, provided that average working hours during the year do not exceed 8.
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Every employee is entitled to no less than 15 working days' leave with full pay after 12 months of continuous service. Where the work is not regularly maintained throughout the year, the requirement for continuous service is met if the employee has worked for 200 days in a particular year. Employees can take their annual leave in 2 approximately equal parts. Every employee has the right to enjoy an uninterrupted annual leave. Exception is made in cases of urgent necessity, when employers may require employees to interrupt their leave and return to work. Employers must compensate the employee for any reasonable expense incurred because of the interruption. Employers must inform their employees at least 30 days before the commencement of leave about its start date. Upon termination of an employment agreement, the employee is entitled to annual leave in proportion to the duration of service in the calendar year (except in the case of termination without notice by the employer). Any agreement to relinquish the right to annual leave or to forgo such leave is null and void.
In Ghana, an employee who has an illness that has been certified by a medical practitioner has the right to a leave of absence. The Labour Act is silent as to whether this leave is with remuneration. The law specifies that sick leave certified by a medical practitioner does not count against an employee's paid annual leave entitlement. Furthermore, if the employee takes certified sick leave starting or during the time annual leave is taken, the sick leave will not be counted as part of the annual leave.
Female employees are entitled to 12 weeks of maternity leave with full pay if they provide a certificate issued by a medical practitioner or midwife, indicating the expected date of delivery. The leave can be extended by 2 additional weeks in case of birth complications or the birth of 2 or more babies. Under the Labour Act of Ghana, workers on maternity leave are entitled to remuneration of their full wages (paid by the employer) as well as other prearranged benefits, during the 12-week (84-day) period.
There are no provisions on paid or unpaid paternity leave in the Labour Act of Ghana.
In Ghana, an employment contract may be terminated for several reasons listed in the Ghanaian Labor Act. The notice length depends on the type of contract: In the case of a contract of 3 years or more - 1 month’s notice or 1 month’s pay in lieu of notice In the case of a contract of under 3 years - 2 weeks’ notice or 2 weeks’ pay in lieu of notice In the case of an agreement from week to week - 7 days’ notice At the close of any day without notice, for at-will employment contracts Notices must be in writing and stipulate the date of issue. In collective agreements with terms more beneficial to the employee, the collective agreement prevails. The length of notice of termination required to be given in the case of a person with a disability must not be shorter than 1 month.
An employee has the right to receive severance pay from an employer only when the employer closes down or undergoes a merger, and this causes the worker to become unemployed or suffer a diminution in the terms and conditions of employment. The amount of redundancy pay, as well as the terms and conditions of payment, is negotiated between the employer and the employee or the relevant trade union. Fixed-term employees are not eligible for redundancy pay. In addition to possible redundancy pay, workers are also entitled to the following payments on termination of employment, made within the duration of the notice period, or the next working day in case of no notice: Any remuneration earned by the worker before contract termination Any deferred payment due to the worker before contract termination Any compensation due to the worker with regard to sickness or accident Repatriation expenses in the event of contract termination for foreign contracts
In Ghana, the National Pension Act was implemented in 2010 to establish a uniform set of rules and standards for the administration and payment of retirement and related benefits for workers. Employers must register all their employees in the scheme. There is also a voluntary pension scheme. An employee qualifies for an old-age pension at age 60 with at least 180 months (15 years) of contributions (age 55 for persons working under hazardous conditions). An early (reduced) pension is permitted at age 55 with at least 180 months of contributions. The old-age pension is not payable abroad. The pension amount is calculated as 2.5% of average monthly income for each or the first 15 years of contribution is rated 2.5%. The subsequent years attract a yearly rate of 1.125%, limited to a maximum of 60% of the average monthly income.
A survivors benefit is paid as a lump sum to survivors nominated by the deceased person if the deceased was younger than age 75 at the time of death. Eligible survivors include a widow(er), orphans, parents, and certain other family members. The survivors must have been partially or fully dependent on the deceased. If the deceased had paid 12 contributions within the last 36 months prior to their death, a lump sum payment of the earned pension of the deceased member for a period of 15 years will be paid. The present value of the pension is calculated using the 91-day Treasury bill interest rate or 10%, whichever is lower. When the death of the member occurs before making the 12 months contribution within the last 36 months, a lump sum equal to their total contributions and interest at the rate of 75% of government Treasury bill rate, will be paid. If an employee dies as the result of a workplace injury or occupational disease, a lump sum of 60 months of the employee’s earnings when the work injury occurred or occupational disease began is paid, minus the value of any disability benefits paid for the same work injury or occupational disease before the deceased’s death.
To qualify for invalidity pension, the employee must have contributed for 12 months in aggregate within the last 36 months preceding the incidence of the invalidity. Employees who do not meet the qualifications for an invalidity pension may be entitled to a disability benefit (mandatory occupational pension). An employee who qualifies for an invalidity pension will receive 37.5% of their average annual earnings in the three highest years of earnings plus 1.125% of average annual earnings for each month of contributions exceeding 180 months. In the case of occupational injuries, the employer must provide benefits directly to employees or purchase private insurance to cover these costs.
Employers are required to compute the income tax on any employment income accrued or derived in Ghana by residents or non-residents. Employers must then remit to the Ghanaian Revenue Authority within the first 15 days of the ensuing month in which the payment was made. At year-end, the employer must reconcile monthly withholdings and in cases of a shortfall, pay the difference on or before January 15. Tax residents are taxed at graduated rates with the highest marginal bracket at 35% for Ghanaian tax residents with annual taxable income exceeding GHS 600,000 (Ghanaian cedis). The tax rate for non-resident individuals is a flat rate of 25%.
Apart from ECOWAS (Economic Community of West African States) nationals and other nations with which the Government of Ghana has specific agreements for gratis visas, all foreign applicants are required to have a visa upon entry into Ghana.
The different types of visas offered are:
Foreign nationals wishing to work in Ghana must have a work permit. Applications are submitted via the Ghana Immigration Service. A work permit issued to foreign nationals must specify the employer and the period they may occupy a particular post. The holder may not, without the consent in writing of the authorities, engage in any other form of paid employment or any business or professional occupation in Ghana. A foreign national granted a work permit or immigrant quota cannot start working in Ghana immediately unless the Director of Immigration grants them a residence permit to remain and work in the country. Residence permits may be issued for up to 4 years, with an option for a subsequent extension for another 4 years.
