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Employer of Record and Payroll Services in Ghana Ghana flag

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We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.

Services available

  • Employer of record
  • Contractor management
  • Global payroll
  • In-country payroll

Mercans offers complete payroll, PEO and HR services in Ghana

Recent economic growth in Ghana has outperformed sub-Saharan Africa (PWC, 2018), which has enhanced its image as an attractive investment destination. Ghana's investment attractiveness has also been boosted by government initiatives, such as legal changes to address the challenges to the country's development into the business hub of West Africa.

Doing Business in Ghana

Companies operating in Ghana can be limited liability companies organized under Ghanaian laws or external companies incorporated outside the country (PWC, 2018). The law allows Ghanaians or non-Ghanaians to have whole or partial ownership of local companies.

Entity Registration and Incorporation Requirements

A local company must provide the following information to be registered: its name, the nature of its business, the names of at least two directors – one of which must be a Ghanaian citizen; the number of shares, the auditor's identity and address; and the registered office, principal business place, and mailing address (PWC, 2018).

Banking

Banking Hours: 9.00 am to 5:00 pm from Monday to Friday

Working Week

The standard working week is from Monday to Friday from 8:00 am - 5:00 pm

Labor Law

Under the Labour Act 2003, remuneration includes the basic wage or salary, as well as any additional allowances paid directly or indirectly by the employer to the employee. Wages must be paid in legal tender to all classes of workers in accordance with the Labour Act. Employers are required to pay wages to their employees on time in accordance with the law. Employees who are employed on a monthly basis receive a monthly payment, while those who are employed on a weekly basis receive a weekly payment. The Labour Act allows the payment of wages in kind because "full pay" refers to a worker's normal compensation without overtime payments, including the cash equivalent of any in-kind compensation.

Main Industries

Mining, lumbering, light manufacturing, aluminum smelting, food processing, cement

GDP Growth

0.9%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Ghana

Population

30.96 million

Capital

Accra

Major Languages

English

Currency

Ghanaian cedi

Internet Domain

.gh

International Dialing Code

+233

Ghana
Accra, GH
5:25 am, February 9, 2023
26°C
scattered clouds

Payroll in Ghana

Mercans is a global leader in payroll and leading provider of Ghana payroll services that assists companies in Ghana with meeting the payroll needs of local employees, whether they are Ghana citizens or expatriates. As one of the most successful payroll companies in Ghana, it is our goal to be your one-stop source for end-to-end payroll services. We will handle all aspects of payroll processing so that you may focus on more important matters.

Our expertise and advanced technology enable us to provide superior payroll services in Ghana and around the world. Thus, making us one of the leading payroll companies in Ghana. One of the largest companies in this field, we provide a range of industry-leading payroll solutions.

You can simplify complicated and time-consuming processes with our payroll services, such as Real Time Information (RTI), reporting, and pension auto-enrolment. At all times, you can count on our experts to provide you with real-time payroll assistance.

Payroll

Ghana follows a monthly payroll cycle, with payments due no later than the last working day of each month. Some employers, however, pay their employees biweekly.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 6 years

Reports

Employees receive paid annual leave of 15 days

Annual Leave

There are no provisions mandated by law regarding paid sick leave.

Sick Leave

12 weeks of paid maternity leave and there is no statutory law regarding the paternity leave

Maternity & Paternity Leave

30 days

Employee Termination

There are no provisions mandated by law regarding the 13th month salary

13th month salary

13.53 GHS per day

Minimum Wage

Overtime payment of 1.5x the employee's ordinary rate of pay for 8 hours of overtime per week

Overtime

There is no severance pay in the case of individual dismissals

Severance Pay

We offer EOR in Ghana that allows you to hire a great team in any region without the need to establish a legal entity.

With our employer of record services, you can reach new markets faster and stay competitive.

Count on us as your dedicated EOR provider in Ghana to generate compliant contracts, handle payroll, and handle benefits.

PEO in Ghana

Mercans PEO Services is a pioneering Professional Employment Organization (PEO) in Ghana, changing the way international companies navigate the local HR landscape. Our PEO in Ghana provides a customized and streamlined HR solution for companies expanding into Ghana, taking care of everything from employee recruitment and payroll, to benefits and compliance. With a thorough knowledge of the Ghanaian market and a skilled team of experts, Mercans is the reliable partner for successful business growth in Ghana. Choose Mercans for a unique and hassle-free expansion experience.

Tax and Social Security

An individual resident’s income is determined based on the income derived from each employment, business, or investment for the year, regardless of whether the source of the income has ceased. Citizens who are residents are taxed on their worldwide income. Businesses, investments, and employment income from Ghanaian and non-Ghanaian sources are all taxable.

Tax

Employment wages are subject to income tax.

25%

Corporate Income Tax

30%

Personal Income Tax

13.5%

Sales Tax

13.5%

VAT

Social Security

Pension fund contributions are deducted from the employee’s gross wages and withheld. Social tax and social insurance contributions are the responsibility of the employer.

18.5%

Social Security Rate

13%

Social Security Rate for Employers

5.5%

Social Security Rate for Employees

Employment Law

Under the Ghana Labor Act of 2003 (Act 651), every company employing at least six people for a continuous period of time in Ghana is required to issue and sign an employment contract. All obligations and rights of the parties must be clearly expressed in the contract.

Employment Agreement

A written employment contract is required which must contain details of the parties, job description, the contract term as well as the rights and responsibilities of each party.

Working conditions

Ghanaian workweeks typically consist of 40 hours per week, divided into eight hours per day for a five-day week. In some industries, the workweek can be extended to 48 hours.

Leaves

Employees are entitled to sick leave and sick pay. The annual paid leave entitlement for a full-time employee is 15 working days after one year of employment. In Ghana, there are 13 public holidays. Employees who are pregnant are entitled to 12 weeks (up to 14 weeks in the case of multiple or complicated births) of paid Maternity leave at 100% of their regular pay.

Employment termination

Depending on the type of contract and the reason for termination, the termination process will vary according to the employment agreement or collective bargaining agreement. It is possible for either the employee or the employer to terminate the employment contract at any time. It is necessary to give written notice. Employees who have been terminated unfairly may file a claim with the labor court and, in some cases, be reinstated. An at-will employment may be terminated at any time without notice by either the employer or employee.

30 days

Minimum notice period for terminating an employee

13 days

Total number of public holidays

40

Working hours per week

2 days

Total number of days for Compassionate & Bereavement Leave

Immigration

Visas issued in Ghana include Transit Visas, Emergency Entry Visas, Visas on Arrival, and Re-Entry Visas. A single-entry visa is issued for 90 calendar days while multiple-entry business visas may be issued for a maximum of 180 calendar days.

Residency permits

A residence permit authorizes a foreign national to live in Ghana for a specified period. A resident permit may be issued to a foreign national who intends to remain in Ghana for a substantial period. It may be issued usually generally between the duration of one to four years in the first instance, and no more than eight tears in total.

Work Permit Validity

1 year

Required Documents

A photocopy of a valid passport

A CV demonstrating the employee’s qualifications to work in Ghana

A medical certificate

A police background check from the employee’s country of residence

Employment contract

Company’s current audit code

A tax clearance certificate

Regulations of the company code

Company’s certificates of incorporation and registration

Company’s certificate to commence business

Proof that the company advertised the job to local workers in Ghana

Compliant, reliable, error-free and touchless payroll in Ghana

Build the best team and hire top talent compliantly in Ghana. Get in touch with Ghana payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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