Ghana's New Personal Income Tax Brackets

Ghana has revised the personal income tax brackets substantially. Effective from January 1,2024, these changes, enacted under the Income Tax (Amendment) (No. 2) Act, 2023 (Act No.1111), aim to adjust the rates and thresholds of income tax for resident individuals. Here’s how the new monthly chargeable income and tax rates are structured.

These new brackets apply to resident individuals earning various levels of income. Importantly, the minimum wage earners will continue to be tax-exempt, offering some relief for the lowest earners. Non-resident individuals will continue to be subjected to a flat 25% tax on their income. It's essential for both individuals and companies to modify their payroll systems appropriately.

SSNIT Maximum and Minimum Insurable Earnings for 2024

Effective from 1st January 2024, the Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Authority (NPRA), has announced adjustments to the maximum and minimum insurable earnings. These changes directly impact the contributions made by employers and members of the SSNIT scheme.

Maximum Insurable Earnings

In line with section 63 (3) of the National Pensions Act 2008 (Act 766), maximum insurable earnings have been raised from GHS 42,000.00 to GHS 52,000.00.

Minimum Insurable Earnings

Minimum insurable earnings also increased from GHS 401.76 to GHS 490.05 indicating a hike in daily minimum wage.

Maximum Contribution

Accordingly, based on new maximum insurable earnings, the SSNIT’s highest contribution for 2024 will now be GHS 7,202.00.

Minimum Contribution

Similarly adjusted is the minimum contribution which stands at GHS 66.16.

Employers and members of SSNIT Scheme within these revised earning thresholds are requested to ensure that their contributions reflect these updated figures; staying informed and proactive is key as always during such changes

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