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Undoubtedly, payroll is a critical process for any organization. Pay cycle in Ghana refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

The payroll cycle in Ghana is monthly, and payments must be made on the same day of each month and no later than the last working day of each month. However, some employers choose to pay their employees on a bi-weekly basis.

There are no provisions in the law regarding 13th salaries in Ghana.

Effective January 1, 2024, the National Daily Minimum Wage in Ghana will increase by 22% to GHS 18.15.

The Labor Act states that workers in Ghana are not allowed to work more than eight hours in a day unless they are being paid a fixed premium amount for overtime work.  

However, a rate for overtime work is not specified. General practice for overtime pay is 150% of an employee's regular rate of pay for overtime worked on the weekdays and 200% of regular pay for overtime worked on the weekend.

In Ghana, tax records generally must be kept for six years.

Employers must keep records of employees' pay and contributions for 12 years after the end of the pay period to which the records relate.

Employers must keep records of employees' dates of employment, annual leave entitlements, the dates annual leave is taken, and pay received for annual leave, but a time limit for retention is not specified.

Generally, the Constitution in Ghana provides that no person may be discriminated against on the grounds of gender, race, colour, ethnic origin, creed or social or economic status.

Further, in accordance with the Labour Act, employers who hire people with disabilities are given special incentives as determined by the Minister responsible for employment and labour relations.

People with disability who enter the public service are appointed on the same terms as people without a disability, regardless of whether they work fewer hours than their colleagues without a disability.

Following documents are required for onboarding process in Ghana:  

• Personal information (includes name, surname, residential address with proof) 
• Copy of the National Registration 
• Identity Card (NRIC) (for permanent residents)
• Copy of Passport
• Bank details 
• Educational qulifications
• Medical exam result (for expats)
• Police verification (for expats) 
• Photographs (for expats) 
• Curriculum Vitae (CV)

In Ghana, the Probationary period and conditions of probation are generally provided in the employment contracts and in collective agreements.

The government recognizes 13 public holidays. Employers must provide employees with paid leave on these days. The public holidays are:

• January 01: New Year's Day
• January 07: Constitution Day
• March 06: Independence Day
• April 07: Good Friday
• April 10: Easter Monday
• April 22: Eid ul-Fitr (Tentative Date)
• May 01: May Day
• June 29: Eid-al-Adha (Tentavie Date)
• August 04: Founders' Day
• September 21: Kwame Nkrumah Memorial Day
• December 01: Farmers' Day, the first Friday in December
• December 25: Christmas Day
• December 26:Boxing Day

Employees are entitled to paid sick leave according to the Labor Act, although the amount of time an employee may take per year for sick leave is not specified.

Employers must provide women with a minimum of 12 weeks off plus any annual leave entitlement for maternity leave.

Employers must give female employees full remuneration during maternity leave. This leave can be extended for an additional two weeks if two or more babies are born.

Illness caused by pregnancy also qualifies an employee for additional maternity leave. Employers are required to give nursing mothers an hour of remunerated break to nurse each day for up to a year.

• Annual Leave - For each year of service with their employer, an employee is entitled to 4 weeks of paid annual leave or 5 weeks of paid annual leave, if:
  A modern award applies to the employee and defines or describes the employee as a shift employee for the National Employment Standards
• Compassionate Leave - 2 days of paid leave
• Pre-Adoption Leave - 2 days of unpaid leave
• Unpaid Family & Domestic Violence Leave - 5 days of unpaid Leave
• Community Service Leave
• Long Service Leave

The termination process varies according to the employment agreement or collective bargaining agreement and is based on the type of contract and reason for termination.

Either the employee or employer can terminate the employment contract at any time. Notice in writing is required.

If the termination is deemed unfair, the employee may make a claim with the labor court and in some cases, have their employment re-instated.

If the employment is considered ‘at-will,’ either the employer or employee may terminate the employment at the end of the day without notice. 

When there is no ‘at will’ clause in the employment contract, it is possible to pay the employee in lieu of notice.

Notice period in Ghana is as follows: 

• For a contract of 3 or more years, one months’ notice or one month pay in lieu of notice  
• For an employment contract less than three years, two weeks’ notice or two weeks’ pay in lieu of notice  
• In the case of a contract from week to week, it will be seven days’ notice
• A contract determinable at will by either party may be terminated at the end of the day without any notice

There is no severance pay in the case of individual dismissals (for non-economic reasons).

When the termination is due to redundancy, compensation is subject to negotiation between the employer and the employee.

In the event of unfair dismissal, an employee may file a complaint with the labor commission. If the labor commission finds that the termination of employment was unfair, it may order the employer to reinstate the employee from the date of termination of employment.

The employee may be reinstated to the same position or in a reasonably suitable role on the same terms and conditions as before termination. Alternatively, the labor commission may order the employer to compensate the employee.

All termination pay must be given to the employee by the last day of employment as determined by the notice period. If a notice period is not required, the termination pay is due the day after termination.

Foreign workers will need both-

• work visa, needed to enter the country for work, and
• a work permit, needed to start working in Ghana.

Foreign workers must obtain a work visa or immigration quota in order to work in Ghana. They will not be permitted to engage in any work other than what is listed on the work permit or immigration quota.

Work permits can be applied through a consular office and must be submitted to the Director of Immigration in Ghana. Immigration quotas must be applied through the Ghana Investment Promotion Center.

Resident permits from the Director of Immigration must also be acquired before remaining in Ghana to work.

Citizens who are nationals of the Economic Community of West African States (ECOWAS) have different and less stringent visa requirements.

Requirements to obtain Ghana Work Visas: 

It’s up to the employer to apply for a work permit on behalf of any foreign workers they hire.

The employee will need to provide the following 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 

In addition to these documents, the employer must provide: 

• The employment contract 
• The company’s current audit code 
• A tax clearance certificate 
• Regulations of the company code
• The company’s certificates of incorporation and registration
• The company’s certificate to commence business
• Proof that the company advertised the job to local workers in Ghana 

After obtaining a work permit, foreign nationals will still need a residence permit before they can begin working in Ghana. The required documents for this permit include: 

• Two passport photos 
• A valid original passport 
• An approved work permit 
• An employment contract 
• A non-citizen ID card 
• Business registration documents and tax clearances for the employer

Generally, there are no specific provisions that restrict or prohibit background checks on applicants. An employer can or may hire a third party to conduct background checks on an applicant, provided the conduct does not breach the applicant’s privacy.

To avoid breaching a person’s privacy, the Data Protection Act 2012 requires that personal data be collected directly from the subject unless, among other things, the data is in the public domain, the subject consents to the collection of the data from a third party or the collection of the data is for judicial law enforcement and national security purposes.

Personal data is generally defined as data that identifies or can identify a person if taken in conjunction with other data or information.

Criminal records, medical records and credit balance, among other things, are deemed as personal or confidential information under the Data Protection Act. An employer cannot retrieve such information without the consent of the applicant unless the employer is specifically authorized by law to do so.