Hire employees in Ghana
What a foreign company needs to know before employing people in Ghana in 2026: whether you need a local entity, what the 13% employer pension really costs, how the new PAYE bands from September 2026 work, how short statutory notice sits alongside unfair termination claims, and how the new investment law ties the expatriate quota to capital. Written for CHROs, CFOs, General Counsel and founders.
Quick answers
The questions leadership teams ask first.
Do I need a local entity in Ghana to hire?
No. There are three routes:
- Employer of Record. Dryft Global employs the person through a compliant Ghanaian employer registered with the Ghana Revenue Authority (GRA) and SSNIT, issues the written contract, and runs PAYE and all three pension tiers. You direct the work.
- Direct local entity. You incorporate with the Office of the Registrar of Companies, register with GIPA, then set up SSNIT, a Tier 2 pension trustee, PAYE and data protection registration before the first payroll.
- Independent contractor. Lawful only for a genuinely independent business. A full-time worker under your direction is an employee whatever the contract says.
When should I use an EOR instead of registering locally?
Use an EOR for your first hires and for BPO, engineering or regional teams of up to about 50 people. You start in days and avoid the registrations, annual GIPA renewal and trustee set-up. Your own entity earns its keep for a long-term centre, when you will sell into the Ghanaian market, or when you need your own expatriate quota for leadership roles.
What does an employee actually cost beyond salary?
Less than in most markets. The only statutory employer contribution is 13% pension, calculated on basic salary and capped at GHS 69,000 a month in 2026. There is no separate employer health or unemployment charge. Customary private medical cover and a 13th month bring the all-in figure to roughly 15% to 25% for professional roles, or about 30% with an employer provident fund.
How difficult is termination in Ghana?
Notice is short, but the reason must be fair. Statutory notice is one month for contracts of three years or more and two weeks for shorter ones, or pay in lieu. The employer must prove a fair reason and a fair procedure, and unfair termination claims go to the National Labour Commission, which can order reinstatement or compensation. Redundancy needs three months' notice to the Chief Labour Officer and negotiated redundancy pay.
Can Dryft Global legally employ my team in Ghana?
Yes. Dryft Global acts as the legal employer in Ghana. We issue written contracts under the Labour Act 2003, register employees with SSNIT and the Tier 2 trustee, withhold PAYE under the September 2026 bands, remit pensions by the 14th and PAYE by the 15th, register data processing with the Data Protection Commission, and manage leave, notice and terminations.
Hiring routes compared
Speed, local registration, tax administration and liability differ by route.
| Factor | Direct local entity | Dryft Global EOR | Independent contractor |
|---|---|---|---|
| Time to operational state | Several weeks to months | Days to 2 weeks | Days |
| Local entity required | Yes, ORC and GIPA registration | No | No |
| PAYE and pensions | Your GRA, SSNIT and trustee files | Handled by Dryft Global | Contractor self-reports |
| Statutory liability | Direct corporate exposure | Assumed by Dryft's local employer | High if reclassified |
| Best fit | Long-term presence, local sales | Teams of 1 to about 50 | Discrete project work |
What an employee costs in Ghana
Ghana has one statutory employer contribution, the 13% pension, and it applies only to basic salary. The model below is an Accra software engineer on GHS 15,000 a month in 2026, all basic.
| Component | Employer share | Notes |
|---|---|---|
| Pension (Tier 1 and Tier 2) | 13% | On basic salary up to GHS 69,000 a month; employee pays 5.5% |
| National health insurance | Included | 2.5 points come out of the Tier 1 remittance, not on top |
| Statutory subtotal | 13% | GHS 1,950 a month on the model salary |
| Private medical insurance | ~4% | About GHS 600 a month, expected for tech roles |
| 13th month | ~8% | Customary, not statutory; taxed at 5% to the employee |
| Total employer on-cost | ~13% to 25% | Above base salary on the model salary |
For an employee on GHS 15,000 a month, budget roughly GHS 203,000 to 226,000 a year all-in before the EOR fee, about USD 17,500 to 19,400 at GHS 11.65 to the dollar. Adding a 5% employer provident fund takes the burden to about 30%. Ask us for a cost model with current rates applied.
Payroll and tax
Salaries are paid monthly in cedis. Tier 1 contributions go to SSNIT and Tier 2 to an approved corporate trustee by the 14th of the following month, and PAYE is remitted with a monthly return by the 15th. Late pension contributions attract a 3% a month compounding surcharge. The employer's annual PAYE return is due by 30 April, and SSNIT employer registration must be in place before the first employee starts.
Progressive PAYE, new bands from September 2026
Under the Income Tax (Amendment) Act 2026, from 1 September 2026 the first GHS 588 a month is tax free, then rates step through 5%, 10%, 17.5%, 25% and 30% to 35% above GHS 50,000 a month. Employee pension contributions are deducted before tax. Non-residents pay a flat 25%. A bonus up to 15% of annual basic is taxed at a final 5%. On GHS 15,000 a month, net pay is about GHS 11,000. Pay from January to August 2026 used the earlier bands, so year-end reconciliation spans both.
Statutory minimum wage
The National Daily Minimum Wage is GHS 21.77 a day from 1 January 2026, up 9% on 2025, or about GHS 588 a month. It is a single national rate set by the National Tripartite Committee, and the new tax-free band means a minimum wage earner pays no PAYE.
Leave and mandatory benefits
- Annual leave. At least 15 working days on full pay per year of service. Public holidays, certified sickness and maternity leave do not reduce it. Professional offers often give 20 days or more.
- Public holidays. 14 a year after the 2025 amendment, which restored Republic Day on 1 July and Shaqq Day after Eid al-Fitr and moved Founders' Day to 21 September. Midweek holidays move to Friday and weekend ones to Monday.
- Sick leave. No fixed statutory number of paid days. Sick pay is set by contract or collective agreement against a medical certificate, and dismissal for certified temporary illness is unfair.
- Maternity. At least 12 weeks on full pay, plus 2 weeks for abnormal or multiple births, and a paid one-hour nursing break each day. The 14 weeks reported in the press is in the draft Labour Bill, which has not been passed.
- Paternity. No statutory entitlement in the private sector yet. Many employers give a few days by policy.
- No statutory 13th month. A 13th month is common and tax efficient, but not mandated.
- Working time. 8 hours a day or 40 a week, Monday to Friday. The overtime rate must be fixed in the contract or a collective agreement before overtime can be required.
- Supplementary benefits. Private medical insurance, an employer provident fund, and transport, internet or power backup allowances.
Termination and notice periods
Probation is not capped by statute, but it must be stated in the contract; three to six months is normal. After that, a termination needs a fair reason and a fair procedure, with written notice or pay in lieu.
| Situation | Requirement |
|---|---|
| Contract of 3 years or more | 1 month's notice |
| Contract under 3 years | 2 weeks' notice |
| Week to week contract | 7 days' notice |
| Redundancy | 3 months' notice to the Chief Labour Officer, negotiated redundancy pay |
- Fair reasons. Incompetence, proven misconduct, redundancy, or a legal restriction on doing the work. The employer carries the burden of proof.
- No general severance. Outside redundancy there is no statutory severance, though collective agreements may provide end of service benefits.
- Unfair termination. Includes dismissal for union activity, complaints, pregnancy, disability or certified illness, and constructive dismissal. The National Labour Commission can order reinstatement or compensation.
- Pay in lieu is allowed. Either party can end the contract by paying the wages for the notice period.
- Fast final pay. Final wages are due by the next working day after termination.
Can I use independent contractors?
Only where the person genuinely runs their own business: their own clients, schedule and tools, invoicing for output rather than a fixed monthly fee. Ghanaian courts look at control, integration and economic dependence, not the label. Misclassification brings back pension contributions at 18.5% with the 3% a month compounding surcharge, unremitted PAYE with penalties, and leave, notice and unfair termination claims. Supplying workers to third parties also requires a private employment agency licence from the Labour Ministry. For anyone who works like an employee, an EOR is the compliant route.
The legal framework in brief
Ghana is a common law system with one national labour statute. Several important rules changed in 2026, while the long-awaited Labour Bill is still in draft. The instruments you will hear most:
- Labour Act 2003 (Act 651). Contracts, hours, leave, maternity, termination, unfair dismissal and private employment agencies. Still in force in full.
- National Pensions Act 2008 (Act 766). The three-tier system: 13% employer and 5.5% employee, split between SSNIT and a Tier 2 trustee.
- Income Tax Act 2015 as amended by Act 1178 of 2026. New PAYE bands from 1 September 2026, bonus and overtime tax, withholding.
- Ghana Investment Promotion Authority Act 2026 (Act 1173). Replaced the GIPC Act in July 2026: no minimum capital for non-trading companies, annual registration, and an expatriate quota of 2 to 12 people by paid-up capital.
- Data protection. Data Protection Act 2012 (Act 843): mandatory registration with the Data Protection Commission, renewed every two years, with declared transfer countries.
- Immigration and right to work. Quota, work permit and residence permit through the Ghana Immigration Service, usually valid for one year.
- Authorities. Ministry of Labour, Jobs and Employment, National Labour Commission, GRA, SSNIT, NPRA, GIS, GIPA and the Data Protection Commission.
Where the talent is
About 34 to 35 million people and a labour force of more than 15 million. Unemployment was 13.0% in the third quarter of 2025, which means strong demand for formal professional jobs. Ghana's BPO and global business services sector already employs more than 20,000 people, and the government and industry are targeting 100,000 more, supported by the One Million Coders programme. English is the official language of business and law. Time is GMT all year with no daylight saving, so the working day matches London in winter and overlaps the US East Coast by four to five hours. Accra hosts the AfCFTA Secretariat, and Ghana is an ECOWAS member.
| Region | Talent and industry concentration |
|---|---|
| Accra | Fintech, telecoms, software, BPO and regional headquarters |
| Tema | Port, logistics, manufacturing and free zones |
| Kumasi | Trade, universities, mining services and shared services |
| Takoradi and Sekondi | Oil and gas and Western Region industry |
Ghana Implementation Kit
This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step.
- Step-by-step checklist, from route selection to first payroll
- Written contract and statement of particulars checklist under the Labour Act 2003
- SSNIT, Tier 2 trustee and GRA registration sequence with the monthly calendar
- PAYE worksheet with the September 2026 bands and the GHS 69,000 pension cap
- Expatriate quota and work permit planner under the GIPA Act 2026
- Notice, fair procedure and redundancy notification pack
- Every official Ghanaian authority with direct links
This guide is general information, not legal, tax or immigration advice. The minimum wage and pension limits change each January, PAYE bands changed on 1 September 2026, and the Labour Bill may change leave and termination rules once passed. Confirm current figures with a qualified adviser or with Dryft. Last reviewed November 2026.
Ready to hire in Ghana?
Tell us who you want to hire and where they sit. You will get a cost model and a compliant route within a day, from a person who has done this before.