SSNIT adds 13% from you and 5.5% from the employee (on basic salary up to a cap). That’s 18.5% total — budget it before you make an offer. There is no separate health or unemployment fund at the same scale; SSNIT covers pension and some related benefits. Employer statutory cost is roughly 13% on top of gross before PAYE.
Payroll and tax
PAYE applies to employment income. Bands are progressive: first GHS 4,380 at 0%, next GHS 1,200 at 5%, next GHS 1,440 at 10%, next GHS 36,960 at 17.5%, next GHS 42,120 at 25%, and above GHS 127,200 at 30%. Reliefs and exemptions apply. Monthly remittance to the Ghana Revenue Authority (GRA) is required. SSNIT is remitted to the Social Security and National Insurance Trust. Late payment attracts penalties and interest; GRA and SSNIT are active on compliance.
Labour Act 2003
Written contracts are required for employment. Probation: max 6 months. Working hours: 8 per day, 40 per week (or 48 in some sectors); overtime is paid at 1.5×. One rest day per week; annual leave not less than 15 working days. Maternity leave: 12 weeks; 2 weeks paternity. Termination: by notice (minimum 1 month for contract of 3 years or more, or as contractually agreed) or payment in lieu. Dismissal for cause must be fair and documented; wrongful dismissal can lead to damages.
Severance: where the contract is terminated by the employer otherwise than for cause, the employee is entitled to severance — not less than 2 weeks’ pay for each completed year of service. Contractual notice and severance can be higher; they cannot be lower than the Act.
Statutory benefits
SSNIT (pension and related benefits) is the main statutory contribution. No separate mandatory health insurance for private-sector employees; many employers offer private medical cover. Maternity and paternity leave are as above. Ensure SSNIT is remitted on time; back-dues and penalties can be significant.
EOR considerations
Your EOR must be registered for SSNIT and PAYE and issue Labour Act–compliant contracts. Verify they remit to GRA and SSNIT monthly and that they calculate severance correctly on termination. Labour Commission and courts hear wrongful dismissal and severance disputes; the EOR should carry employment liability and have local capacity. Confirm who bears the cost if rates or caps change.
Frequently Asked Questions
What does an employer pay on top of salary in Ghana? SSNIT 13% (employee pays 5.5%). Total employer statutory add-on is about 13% before PAYE.
Is severance mandatory on termination? Yes when you terminate otherwise than for cause. Minimum 2 weeks’ pay per completed year of service. Contract can provide more, not less.
Can we use a probation period? Yes, up to 6 months. Document performance and any extension; termination during or at end of probation still needs to be fair.
Who remits SSNIT and PAYE? The employer of record — so your EOR. They must be registered with SSNIT and GRA and remit monthly. Confirm before contracting.
What notice period applies? Minimum 1 month for contracts of 3 years or more, or as agreed in the contract. Payment in lieu is acceptable if agreed.