Ghana Payroll: A Guide for Local and Global Businesses

As the largest gold producer in the world and a country with relative political stability, expanding your business into the Republic of Ghana offers significant growth opportunities. With its vibrant economy, economic growth, and strategic location, Ghana is key for businesses looking to tap into the Economic Community of West African States (ECOWAS). However, navigating Ghana payroll regulations can be daunting, especially for international businesses expanding to this growing market. At Workpay, we simplify Ghana payroll processes, ensuring your business meets legal requirements and stays compliant while focusing on growth.

Understanding Ghana's Payroll Framework

Ghana’s payroll system is governed by various laws and regulations that ensure fair labor practices and compliance with statutory requirements. Some key legislation includes:

• Labour Act, 2003 (Act 651): This governs employment conditions, including wages, working hours, and employee rights.
• Income Tax Act, 2015 (Act 896): This regulates personal income tax deductions and remittances.
• National Pensions Act, 2008 (Act 766): This mandates contributions to Ghana’s three-tier pension scheme.
• Social Security and National Insurance Trust (SSNIT): Oversees social security contributions for employees.

Key Components of Payroll in Ghana

Employee Classification

It is important to distinguish between full-time, part-time, and contract employees to determine their tax obligations and employee benefits.

Income Tax

Ghana operates a progressive tax system, with rates ranging from 0% to 30%, depending on the employee’s income bracket. Chargeable income is taxed according to these rates.

Social Security Contributions

Employers contribute 13.5% of the employee’s basic salary to SSNIT, while employees contribute 5.5%, making a total of 18%.

Deductions

The common deductions include PAYE (Pay As You Earn), pension contributions, and union dues (if applicable). These deductions are processed in each payroll cycle, which typically ends on the last working day of each month.

Leave Entitlements

Employees are entitled to annual leave, maternity leave, and paternity leave as specified by the Labour Act. Additionally, employees are entitled to sick leave and public holidays in accordance with the company’s policies.

Compliance Deadlines

Monthly PAYE returns and SSNIT contributions are due by the 15th of the following month, ensuring timely compliance with the tax authority. Employers must also comply with the standard VAT rate when applicable.

Simplifying Payroll Management in Ghana Through Workpay

At Workpay, we offer a robust payroll solution for local and global businesses operating in Ghana. Our automated system efficiently handles calculations, deductions, taxable income, and compliance updates, ensuring accurate processing while keeping you aligned with Ghana’s labor laws. Our system also helps maintain accurate payroll records, which is crucial for compliance with the Ghana government’s regulations.

We also ensure that your business stays up-to-date with changes in tax returns, salary structures, and taxable income while making it easy to centralize employee records, including contracts and work permits, ensuring easy access for audits. Furthermore, we assist in establishing clear policies regarding pay rates, overtime, and termination processes to build trust and minimize disputes.

By partnering with us, you gain local expertise in Ghana’s payroll and labor laws and our team ensures your business stays compliant, helping you avoid penalties and maintain a positive reputation. This improves operational efficiency, boosts employee satisfaction with timely payments, and scales with your business growth. Book a demo here

Hire, Manage, and Pay Employees in Ghana Through Workpay EOR

We also simplify hiring, managing, and paying employees in Ghana through our Employer of Record (EOR) service. This solution allows global businesses to seamlessly navigate Ghana’s labor laws and regulations without the need to establish a local entity. Our EOR service handles everything from compliance to payroll processing and employee benefits, ensuring you remain fully compliant with local requirements.

Through Workpay, you can quickly onboard employees, manage their employment contracts, and ensure timely payments, all while focusing on expanding your business in Ghana's thriving market. For example, if you are hiring foreign nationals, Workpay will help you navigate visa requirements and ensure compliance with Ghana’s tax laws, as well as pay taxes and contributions. Book a meeting with us to get started today

Conclusion

Managing payroll in Ghana may seem complex, but with Workpay, your business can navigate local regulations smoothly and efficiently. Whether you are expanding from Ivory Coast, Burkina Faso, or anywhere else in the region, ensure your system aligns with the minimum wage laws, foreign investment regulations, and other tax authority requirements.

Start your journey towards simplified payroll management with us today and position your business for success in Ghana, a key player in the West African economy and an attractive destination for foreign direct investment/ foreign investors.

Frequently Asked Question

What are the current tax rates and statutory deductions for payroll in Ghana?

In Ghana, payroll tax rates include Pay As You Earn (PAYE), which varies based on income, and mandatory SSNIT contributions for social security. Employers must also deduct contributions for the National Health Insurance Scheme (NHIS). Compliance with these statutory requirements ensures legal adherence and avoids penalties.

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