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Global Payroll Team
Written by Global Payroll Team
Last updated May 1, 2026
Expert Reviewed
Payroll in Ghana
EOR in Ghana
PEO in Ghana

Ghana map

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Mercans offers complete payroll, PEO and HR services in Ghana

Ghana remains one of West Africa’s most important investment destinations, supported by its political stability, strategic location, growing digital economy and continued reforms to improve the business climate. Government initiatives and legal reforms continue to strengthen Ghana’s position as a regional business hub for trade, services, logistics, manufacturing and natural resources.

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Doing Business in Ghana

Companies operating in Ghana may be limited liability companies organized under Ghanaian law or external companies incorporated outside the country. Ghanaian and non-Ghanaian investors may generally have whole or partial ownership of local companies, subject to sector-specific rules and investment regulation.

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, the number of shares, the auditor’s identity and address, and the registered office, principal business place, and mailing address.

Banking

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

Working Week

The standard working week is generally 40 hours, usually from Monday to Friday from 8:00 am to 5:00 pm.

Labor Law

Under the Labour Act 2003, remuneration includes the basic wage or salary as well as additional allowances paid directly or indirectly by the employer to the employee. Wages must be paid in legal tender unless otherwise permitted by law, and employers are required to pay workers on time in accordance with the applicable pay period.

Main Industries

Mining, oil and gas, agriculture, food processing, construction, services and manufacturing

GDP Growth

5.0%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Ghana

Population

34.38 million

Capital

Accra

Major Languages

English

Currency

Ghanaian cedi

Internet Domain

.gh

International Dialing Code

+233

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Ghana
Accra, GH
3:39 pm, May 13, 2026
32°C
scattered clouds
70 %
Wind Gust: 0 mph
Clouds: 40%
Sunrise: 5:46 am
Sunset: 6:08 pm

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Payroll in Ghana

Mercans offers comprehensive and reliable payroll services in Ghana that cater to the unique needs of businesses operating in the country, ensuring compliance with local labor laws and regulations. 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.

Through our Ghana payroll services and our expertise and advanced technology, we deliver superior payroll services around the globe. 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 statutory reporting, payroll tax withholding and pension administration. At all times, you can count on our experts to provide you with real-time payroll assistance.

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Payroll

Ghana commonly follows a monthly payroll cycle, with many employers paying employees no later than the last working day of the month. Some employers may use different pay cycles depending on their workforce arrangements.

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 working days

Annual Leave

The Labour Act provides for sick leave where a worker presents a medical certificate, but it does not prescribe a universal fixed statutory paid sick leave period

Sick Leave

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

Maternity & Paternity Leave

Notice periods vary by contract type and length, up to 30 days for contracts of three years or more

Employee Termination

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

13th month salary

21.77 GHS per day

Minimum Wage

Overtime compensation should be agreed between the parties or governed by the collective agreement or workplace policy

Overtime

There is no general statutory severance pay in the case of ordinary individual dismissals, though redundancy pay may apply in redundancy situations

Severance Pay

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Employer of Record (EOR) in Ghana

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Mercans is a top EOR provider in Ghana, offering flexible and efficient EOR services to businesses seeking to establish a presence in the country without the need for a legal entity.

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Our EOR in Ghana covers all administrative tasks related to payroll, HR, and compliance on behalf of the client, including registering the client as an employer with the local authorities, managing employee contracts and benefits, and ensuring compliance with local labor laws and regulations.

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Through our employer of record services, our team of experts provide a comprehensive understanding of the country’s labor laws, regulations, and business environment, ensuring businesses using our services remain compliant. Overall, Mercans’ employer of record services in Ghana provide businesses with a hassle-free and cost-effective way to enter the market and expand their operations.

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PEO in Ghana

Mercans is revolutionizing the local HR landscape in Ghana as a pioneering Professional Employment Organization (PEO) provider for international companies. 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.

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Tax and Social Security

An individual resident’s income is generally taxed on worldwide income, while non-residents are generally taxed on Ghana-source income. Ghana applies employment income tax through PAYE and operates a mandatory three-tier pension structure for covered workers.

Tax

Employment wages are subject to income tax. Ghana applies a general corporate income tax rate of 25%, a top personal income tax rate of 35%, and a VAT rate of 15% with NHIL and GETFund levies of 2.5% each, bringing the effective standard consumption tax burden to 20%.

25%

Corporate Income Tax

35%

Personal Income Tax

20%

Sales Tax

15%

VAT

Social Security

Pension fund contributions are deducted from the employee’s basic salary and withheld through payroll. Under the current mandatory scheme, the combined pension contribution is 18.5% of basic salary, split between employer and employee.

18.5%

Social Security Rate

13%

Social Security Rate for Employers

5.5%

Social Security Rate for Employees

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Employment Law

Under the Ghana Labour Act of 2003, every employer must clearly set out the obligations and rights of the parties in the employment relationship. Employment standards in Ghana cover contracts, working time, leave, remuneration, occupational safety and termination.

Employment Agreement

A written employment contract is required for employment lasting six months or more and should contain details of the parties, job description, contract term and 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, working arrangements may differ depending on the nature of operations.

Leaves

Employees are entitled to annual leave of at least 15 working days after a full year of employment. In Ghana, there are 13 public holidays listed for 2026, excluding commemorative days that are not observed as public holidays. Pregnant employees are entitled to 12 weeks of paid maternity leave, which may be extended in qualifying cases.

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. Written notice is generally required, and employees who are unfairly terminated may seek redress through the appropriate dispute resolution process.

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30 days

Minimum notice period for terminating an employee

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13 days

Total number of public holidays

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40

Working hours per week

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Not specified

Total number of days for Compassionate & Bereavement Leave

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Immigration

Visas issued in Ghana include transit visas, emergency entry visas, visas on arrival in qualifying cases, and re-entry visas. Foreign nationals who intend to work in Ghana generally require both the appropriate immigration status and a work and residence permit.

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Residency permits

A residence permit authorizes a foreign national to live in Ghana for a specified period. A residence permit may be issued to a foreign national who intends to remain in Ghana for a substantial period. It may be issued for up to four years in the first instance, although in practice many permits are initially granted for one year.

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 or appointment letter

Company’s current tax clearance certificate

Company’s certificates of incorporation and registration

Company’s certificate to commence business

Company’s audited accounts of the previous year

GIPC registration certificate where applicable

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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    FAQs

    What is an Employer of Record (EOR) in Ghana and how does it support foreign companies?

    An Employer of Record in Ghana legally employs workers on behalf of foreign companies. It manages employment contracts, payroll, taxes, and compliance with Ghanaian labor laws, allowing companies to hire locally without establishing a legal entity.

    Why should businesses use an EOR instead of setting up a local entity in Ghana?

    Using an EOR helps companies avoid the time, cost, and complexity of setting up a subsidiary. It enables quick market entry, ensures compliance with local employment laws, and reduces administrative and financial risk.

    How does payroll outsourcing in Ghana ensure compliance with labor and tax regulations?

    Payroll outsourcing in Ghana guarantees accurate salary calculations, tax deductions, and social security contributions in line with national laws. It reduces the risk of non-compliance and ensures timely reporting to local authorities.

    Can an Employer of Record in Ghana hire employees and manage work permits for international companies?

    Yes, an EOR in Ghana can hire employees for foreign companies and assist with obtaining work and residence permits. It handles HR administration, payroll management, and ensures full compliance with immigration and labor laws.

    What are the key benefits of using EOR and payroll services in Ghana for global expansion?

    EOR and payroll services allow businesses to expand quickly and compliantly in Ghana. They minimize risk, reduce setup costs, and give access to local expertise while maintaining focus on strategic business growth.

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