Labor Law Compliance Guide for Ghana

Ghana is a country in Sub-Saharan Africa with a population of 33 million.

Category	Details
Minimum Wage	GHS 21.77 per day (2026)
Overtime Wage	1.5 times regular pay for overtime hours
Meal Breaks	1-hour meal break
Rest Breaks	At least one 30-minute break
Working hours	8 hours/day, 40 hours/week
Salary Payment Cycle	Monthly
Payroll Taxes	SSNIT (18% employer / 5.5% employee), PAYE
Paid Vacation	15 working days
Overtime Hours	More than 8 hours/day
Night Shift Hours	Additional premium for night work
Holidays	13 public holidays
No Work Days	Saturday and Sunday for most sectors
Minimum Wage	Ghana enforces a national minimum wage, which is set at GHS 21.77 per day as of 2026 (up from GHS 19.97 in 2025). The monthly equivalent is approximately GHS 653. The minimum wage applies uniformly across sectors, but specific exemptions exist for apprentices and certain categories of workers who may have a different wage structure.

Ghana’s economy reached approximately USD 111 billion in nominal GDP in 2025, with growth of 4.0% (IMF estimate). The African Development Bank projects 4.8% GDP growth for 2026. Key sectors include agriculture, manufacturing, and services, while the mining sector (particularly gold) along with oil and gas production plays a significant role. Agriculture remains a substantial employer, and the services sector has seen growth in telecommunications, finance, and tourism. The informal economy accounts for an estimated 35% of economic activity.

Ghana is also attracting growing interest as a destination for BPO operations and call centers, supported by its stable democracy and English-speaking workforce.

Ghana’s currency is the Ghanaian cedi (GHS).

Hiring Laws

Businesses hiring in Ghana must register as a legal entity with the Registrar General’s Department. The cost of setting up a business entity varies based on the type of business, with company incorporation taking approximately 1-2 weeks. Employers are required to sign written contracts with their employees, which must include key clauses such as job description, salary, work hours, and termination conditions. The labor laws distinguish between employees and contractors, with contractors typically being governed by separate contractual agreements. Employers are also required to pay holiday wages for public holidays.

Working Hours

The standard working hours in Ghana are set at 8 hours per day and 40 hours per week under the Labour Act (Act 651). Any work beyond these hours qualifies as overtime and is customarily compensated at 1.5 times the regular hourly rate. There is no statutory specified overtime rate in the Act itself, but employers must establish overtime pay rates before requiring overtime work. Workers cannot be compelled to work overtime except where necessary for the viability of the enterprise or in emergencies.

Night shift work is compensated at a premium, and work at night is regulated under specific safety and labor laws.

The minimum working age is 15, and there are strict laws against child labor.

Payroll and Taxes

Employers in Ghana are required to deduct the following from employees’ salaries:

• SSNIT / Social Security Contributions: Tier 1 (SSNIT) is 13% employer + 5.5% employee of basic salary. Tier 2 (Occupational Pension) is an additional 5% paid by the employer. Total employer cost is 18%; total employee cost is 5.5%.

• Maximum Insurable Earnings cap: GHS 61,000 per month (effective January 2025). Maximum monthly employee contribution is GHS 3,355. Remittance deadline is the 15th of the following month.

• PAYE (Pay As You Earn) Tax: Income tax deducted at source based on the employee’s earnings. Non-residents pay a flat 25% withholding tax on Ghana-sourced income. Annual returns are due by April 30 of the following year.

PAYE Income Tax Brackets (2026)

Monthly Chargeable Income	Tax Rate
First GHS 490.00	0%
Next GHS 110.00	5%
Next GHS 130.00	10%
Next GHS 3,166.67	17.5%
Next GHS 16,000.00	25%
Next GHS 30,520.00	30%
Above GHS 50,416.67	35%

Statutory Leave Policies

Employers in Ghana must provide the following leave entitlements:

• Paid Vacation: 15 working days per year.

• Maternity Leave: 14 weeks of paid maternity leave under the revised Labour Bill, 2024 (increased from 12 weeks).

• Paternity Leave: 5 days, one-time annual, within 3 months of birth (introduced under the revised Labour Bill, 2024).

• Sick Leave: Employees are entitled to paid sick leave based on medical certification.

• Public Holidays: 13 mandated public holidays.

Public Holidays (2026)

Holiday	Date
New Year’s Day	Thursday, January 1
Constitution Day	Friday, January 9
Independence Day	Friday, March 6
Eid al-Fitr*	Friday, March 20
Good Friday	Friday, April 3
Easter Monday	Monday, April 6
May Day / Workers’ Day	Friday, May 1
Eid al-Adha*	Saturday, June 27
Republic Day	Wednesday, July 1
Founder’s Day	Monday, September 21
Farmers’ Day	Friday, December 4
Christmas Day	Friday, December 25
Boxing Day	Saturday, December 26

*Eid dates are subject to moon sighting and may shift. When a holiday falls on a weekend, the following Monday is typically observed.

Employee Benefits

Ghana’s labor laws require employers to provide the following benefits:

• Social Security: Contributions towards retirement.

• Healthcare: National Health Insurance Scheme (NHIS).

• Annual Bonus: Discretionary bonuses depending on the sector.

• Gratuity: Paid upon retirement or termination after long service, as per collective agreements.

Employee Termination

Ghana does not follow "At Will" employment laws, meaning employers must have just cause for termination. Employers must provide a written notice, usually one month for employees on probation or two months for permanent employees.

Severance pay is provided based on the employee’s length of service, and terminated employees have the right to challenge unfair dismissal through the National Labor Commission or labor unions. Legal grounds for termination include gross misconduct, redundancy, and poor performance.