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A guide to employing and growing your team in Ghana
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Ghana’s labor market is primarily governed by the Labour Act 2003 (Act 651), though 2026 has brought major legislative shifts through the Value Added Tax Act 2025 (Act 1151) and the newly promulgated Labour Law amendments. These updates aim to address high inflation and modernize social protections. As of January 1, 2026, the National Daily Minimum Wage is GHS 21.77, representing a 9% increase from the 2025 rate of GHS 19.97. This sets the statutory monthly floor at approximately GHS 587.80.
Employer Contributions
SSNIT (Tier 1): 13% of the employee’s basic salary.
Contribution Cap: For the 2026 fiscal year, the maximum monthly insurable earning is capped at GHS 69,000, meaning the maximum employer contribution is GHS 8,970 per month.
Total Employer Contribution: 13.0%
Employee Payroll Taxes
SSNIT (Tier 1): 5.5% of the basic salary (Capped at GHS 3,795 monthly).
Income Tax (PAYE): Variable based on progressive brackets applied to the net salary after SSNIT deduction.
Total Employee Contribution: 5.5%
Employee Income Tax Rates
First GHS 402: 0%
Next GHS 110: 5%
Next GHS 130: 10%
Next GHS 3,000: 17.5%
Next GHS 16,395: 25%
Next GHS 29,963: 30%
Above GHS 50,000: 35%
Statutory Leave
Employees are entitled to a minimum of 15 working days of paid annual leave after completing one year of continuous service. Ghana observes 13 public holidays. Under the 2026 guidelines, if a public holiday falls on a weekend, the following Monday is traditionally declared a public holiday by executive instrument to ensure workers receive the full benefit of the day off.
Pregnancy and Maternity Leave
The 2026 Labour amendments have expanded maternity protections to align with international standards. Female employees are now entitled to 14 weeks of fully paid maternity leave (up from 12 weeks). In the event of a caesarean section, multiple births, or medical complications, this period is automatically extended by an additional 2 weeks. Employers are required to pay the full remuneration during this period. Upon returning, mothers are entitled to one hour of paid nursing breaks per day for one year.
Paternity Leave
A significant addition in the 2026 legal landscape is the formalization of paternity leave. Male employees are now entitled to a minimum of 5 working days of fully paid paternity leave to be taken within the first three months of the child’s birth. Many collective bargaining agreements (CBAs) in the private sector have already extended this to 10 working days to attract top talent.
Work-Related Injury Leave
Sick leave is granted upon the recommendation of a medical practitioner. While the law does not specify a maximum number of days, the “fairness” of the duration is typically determined by the severity of the illness. Additionally, the 2026 reforms introduced 5 days of paid compassionate leave per year for the death of an immediate family member or urgent family emergencies.
Termination Process
Termination must be supported by a valid reason such as misconduct, incompetence, or redundancy. Employers must provide a written notice of termination. For redundancy, the law requires the employer to enter negotiations for “Redundancy Pay” with the employee or their union. Since January 2026, the Labour Commission has mandated that redundancy negotiations must be concluded within 60 days of the notice.
Notice Period
Notice periods are generally defined by the contract of employment but must adhere to these minimums:
Indefinite/Monthly Contracts: 1 month notice or pay in lieu.
Weekly/Fortnightly Contracts: 2 weeks notice.
Gross Misconduct: Immediate dismissal is permitted without notice, provided a summary inquiry is conducted.
Probation Period
The probation period is not strictly capped by the Labour Act but is standardly set at 3 to 6 months. During this window, the notice period for termination is typically shorter (e.g., 14 days). Employers are expected to provide documented performance reviews during the probation period to justify any eventual termination for “poor fit.”