Marzuna Employer of Record Ghana (EOR) solutions make it easy and hassle-free to expand a business into Ghana. Thanks to our cutting-edge HR platform, companies may hire highly skilled individuals in Ghana without having to register a separate legal entity. Hiring and onboarding a remote workforce is sped up by handling payroll processing, tax preparation, and other regulatory obligations. Schedule a demo now to learn more.
According to the Ghana Labor Act of 2003 (Act 651), businesses that have employees in Ghana for a period of six months or more are required to provide and have them sign a formal employment contract. All of the parties’ rights and duties must be clearly stated in the contract.
| Entitlements | Explanation |
|---|---|
| Standard Working Hours | 40 hours per week |
| Overtime Eligibility | Only if the project has set fees may a worker work overtime. For weekends and holidays, overtime pay is 200% of the hourly wage, and it is paid at a rate of 150% of the regular rate. |
| Paid Public Holidays | The public holidays in Ghana for 2021 are as follows.
|
| Holiday Pay | Employees are entitled to up to 15 days of paid annual leave, but they must use it all at once. |
| Medical Leave | Sick leave is not specifically addressed in the employment legislation. However, a doctor’s certification is required if an employee requests sick time. It does not count against the employee’s right to yearly leave. |
| Maternity Leave | For female employees, maternity leave lasts for 12 weeks and can be extended by an additional two weeks in the event of problems or multiple deliveries. The employee is entitled to 60 minutes per day of nursing time after she returns to work following maternity leave, up until the kid is one year old.
Paternity leave is not yet offered in Ghana. Ghana is planning to impose the same requirement for up to five days. |
| Annual leave accrual entitlement | Employees in Ghana are entitled to 15 working days of annual leave if they have worked for the company for a full year. |
| Leave expiry | Employees are entitled to standard leave as specified in their employment contract or, in the absence of one, by the employer. If the worker doesn’t use it within 180 days of the annual leave for the relevant year, it must be forfeited. cycle. |
| Accrued Leave At Termination | The employee is eligible to receive the following:
|
| Employee protection and anti-discrimination rights | Any discrimination against a potential or current employee based on their race, gender, creed, color, economic position, ethnicity, handicap, social connection, or religion shall be regarded as a violation of the law, according to the Ghana Labor Act, 2003 (Act 651) (page 33).
Additionally, the company should treat all of its employees equally when it comes to promotions, training, and compensation. |
| Confidentiality of Personal Information | The Data Protection Act of 2012 protects people’s personal information and privacy. Companies are required to abide by particular rules and norms under this statute. The ensuing guidelines apply:
|
Contractors in Ghana are skilled professionals who typically operate on a project- or contract-oriented basis. They aren’t entitled to the usual payroll benefits that regular employees receive, and they manage their own tax responsibilities. Contractors often handle intermittent assignments for various clients or businesses.
Contractors can be an excellent choice for employers when projects are seasonal, short-term, require minimal supervision, or fall outside the core operations of the company. One of the primary advantages of hiring contractors is the cost savings associated with this arrangement. Employers also benefit from the flexibility to engage contractors as needed for specific tasks or projects.
Contractors maintain control over their workloads and deadlines, operating independently, which means employers have limited influence over their work.
Full-time employees in Ghana are those who are engaged by an organization on a full-time basis and follow the company’s directives. They receive regular paychecks and employee benefits.
Businesses with long-term plans in Ghana that require a stable workforce to support their operational model should consider hiring full-time staff. Full-time positions are typically reserved for tasks essential to the growth and profitability of the company.
One key advantage of hiring full-time employees is their likelihood of displaying loyalty, dedication to the company’s mission, and reduced turnover rate. They can also foster knowledge exchange and protect company trade secrets within the organization.
However, hiring full-time workers comes with several downsides. It leads to increased employment costs because employers are obliged to provide benefits. Additionally, regardless of the company’s financial performance, full-time employees are entitled to salaries.
Employers may think about employing a third-party company to perform background checks on prospective employees when recruiting workers in Ghana, provided that the inquiries abide by local regulations and do not jeopardise the candidate’s privacy.
Shortlisting possible candidates and gathering their information from pertinent public records or independent employment networks like LinkedIn often marks the start of the recruiting process. But before collecting their data, the applicant’s consent is essential.
According to Ghana’s Data Protection Act of 2012, all medical information, criminal history information, and other personal data are kept private. Therefore, with the applicant’s permission or if permitted by local legislation, employers may retrieve this information.
Businesses may utilise job search engines like monster , craigslist, linkedin, and Ghanaian employment portals like ghanajob and joblistghana to find new personnel. However, because of the enormous audience they draw, these platforms could have certain drawbacks including spam and repetition.
Businesses in Ghana may use Marzuna EOR services to hire and onboard contract and full-time personnel. Our services are intended to save costs and make addressing responsibilities associated with employment in Ghana easier. Businesses may concentrate on their core operations while we take care of their hiring needs thanks to our secure services. To discover more about Marzuna Ghana EOR solution, get in touch with us.
The statute makes no mention of the probationary term. But it must be predetermined by a collective bargaining agreement between the employer and the employee, and it must be reasonable. It is advised to incorporate the mutually agreed-upon probationary term in a formal employment contract.
| Notice for termination of employment | In Ghana, either the employer or the employee may end the contract at any time for good cause. Either party should get a written termination copy. If the employment contract has a “at-will” clause, the employee may be compensated in lieu of notice. The provision gives an employer the power to dismiss an employee without giving them any advance notice at the conclusion of any working day.
The following shall apply in all other circumstances.
|
Businesses may quickly establish and grow their presence in Ghana by implementing the Employers of Record (EOR) model. International businesses may easily and rapidly locate and recruit the skilled workers they require to meet the specific needs of their organization with the aid of our EOR services. Our streamlined onboarding process ensures that new hires integrate seamlessly, saving your business a significant amount of time and money. Our end-to-end solutions cover employment contracts, payroll and tax processing, statutory benefits, and general HR administration. Our platform is a full-service employment solution that incorporates digital signatures, payroll processing, automated procedures, contractor payments, and contractor payouts. It also completely conforms with all applicable legislation.
| Terms | Explanation |
|---|---|
| Taxes that apply to invoices | Ghanaian entity: 5.5% of the wages Foreign company: 3% of the wages |
| Minimum duration of service | Temporary employee – One-month Permanent employee – 2 months |
| Currency Accepted | Ghanaian Cedi (GHS) |
| Required Details & Documents | The following documents are required for Ghana citizens.
The following documents are required for expatriates.
|
Our Ghana EOR solutions can assist you in determining the best course of action for expanding your business in Ghana, regardless of whether your firm needs workers to fulfil strategic expansion objectives or you need qualified individuals for certain tasks. To start your expansion project, get in touch with us right now.
| Visa Category | Explanation |
|---|---|
| Single-entry visas | This type of visa entitles the bearer to a single entry and a minimum three-month stay at the Ghanaian border. |
| Express visas | This visa allows the holder to enter Ghana more than once and is good for at least six months. |
| Criteria for visa application | Make sure you satisfy the requirements depending on your intended use of the trip before applying for a visa to Ghana. Personnel of foreign organisations, guests, tourists, diplomats, business professionals, and students may apply for visas. An application for a visa typically takes five business days to process. However, the processing time for an expedited visa might be as short as 48 hours. Please be aware that depending on the kind of visa and the volume of applications being handled, the processing time may vary. |
| Documents required for a Ghanaian visa | To apply for a Ghanaian visa, you need to provide the following documents:
For children under 18, a consent letter from a legal guardian or parent is required. When applying for a Ghanaian visa, it’s essential to have all the necessary documents in place. These include a filled-out and signed visa application form, two passport-sized photos, proof of your residential and business addresses, your contact number, your occupation and job details, your proposed travel date, an income statement, and contact details of references in Ghana. Additionally, for children under 18, a consent letter from a legal guardian or parent is mandatory. |
| Can Marzuna Sponsor Work Permit in Ghana? | For your growth into Ghana, we can sponsor work visas. |
| Processing time | The needed processing time is four to six weeks. |
| Work Permit Process | The actions listed below must be taken by candidates in order to get a work permit in Ghana:
|
| Work Permit validity | A work permit is valid for one year. |
| Where is the Application Processed? | Ghana Immigration Service |
| Work Permit Restrictions | Each work permit application is thoroughly examined by the Ghana Immigration Service to make sure that the supporting documentation is genuine and complete. Applications that are unworthy or that contain insufficient information from the applicant may be rejected. Before approving an application, more details from the applicant could occasionally be needed. Before filing a work permit application, it is essential to consult a legal professional since, in some cases, the Ghana Immigration Service may need more information. To assess a candidate’s eligibility for a work permit, their job history is examined. |
| What’s the cost of a business visa? | A business visa with a validity of more than a year and the ability for the visa holder to make numerous entries for up to five years costs USD $250. |
| Duration of business visa processing | Processing time for a business visa is 16 business days. |
| Can spouses work on dependent visas? | Spouses who hold dependent visas are eligible for benefits under the Dependent Residence Permit. They are not permitted to utilise it to further any endeavour, enterprise, or line of work. To work in Ghana, they will have to apply for different permission. |
| Termination of work permit | In Ghana, a work visa must be terminated with a seven-day notice period. |
| Documents required for a work permit | Applicants must make sure they have all the required paperwork and documentation before applying for a Ghana work permit. These consist of a copy of the employer’s passport biodata page, the employee’s police verification report, their medical report, their educational and professional credentials, passport-size photos, their appointment letter (if one has been issued), their CV, their employment contract, their completed work permit application form, and their certificate of registration, a certificate for the start of their business, and their certificate of incorporation. In order to avoid any delays or rejections in the application process, it is crucial to make sure that all necessary papers are presented with the application. |
The following acts are applicable in Ghana to manage payroll and taxes in the region
The payroll in Ghana is governed by the Labor Act, 2003. Every firm intending to establish a presence in Ghana should be fully informed about payroll management options. They can make better judgments on payroll-related issues if they have the appropriate information.
There are two types of payroll solutions in Ghana: in-house payroll systems and payroll outsourcing systems.
| Explanation | Outsourcing Payroll System | In-House Payroll System |
|---|---|---|
| Overview | In this instance, the business contracts with a payroll team (a third party) to handle all the computations and data input connected to payments. | Here, the company’s internal team of professionals who have access to the necessary technological tools for operating the department oversees the department’s payroll setup.. |
| Features |
|
|
| Processes involved |
|
|
| Suitability | Ideal for businesses that require a professional to handle the complexity of payroll setting. | Ideal for enterprises who don’t feel comfortable exchanging information with a third party and want full control and access to the process. |
| Third-party involvement | Yes | No |
| In-house payroll management team required | No | Yes |
Employer Taxation
| Tax | Explanation |
|---|---|
| Financial year-end date | April 1, each year |
| Tax documents | DT 101 Company Income Tax Return DT 103 Personal Income Tax Return |
| Corporate tax | The corporate income tax rate is 25%. |
| Withholding tax (for non-residents) | Depending on their tax liabilities, non-residents’ withholding tax rates might range from 3% to 7.5%. |
| Payroll tax | 13.00% |
| Social Security and statutory contributions | 13.00% |
| Medical insurance | According to Labor Act 651, companies are not required to offer their workers health or medical insurance. |
Employee Taxation
| Tax | Explanation | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income tax rates |
These tax rates apply to residents only. Non-residents pay taxes at the flat rate of 25%. |
||||||||||||||
| Sales Tax | The sales tax rate in Ghana is 13.50%. | ||||||||||||||
| Payroll tax | 5.5% | ||||||||||||||
| Social security and statutory contributions | 5.50% | ||||||||||||||
| Tax returns | Yes, income tax returns must be filed. |
About 15% of the base salary is made up of bonuses, which are taxed at a rate of 5%.
When firms embark on the journey to establish a presence in a new country, the incorporation of a subsidiary becomes a pivotal step, affording them the crucial legal recognition and assurance of compliance with local regulations. Selecting the right location, managing costs effectively, and navigating legal restrictions are paramount factors to consider when determining the ideal locale for your Ghanaian subsidiary. Seeking guidance from a seasoned specialist can be invaluable in identifying the optimal course of action for your company.
In Ghana, there are four fundamental types of entities that businesses can establish: public limited companies, limited liability companies (LLCs), free zone firms, and branch offices. Among these options, LLCs hold a prominent position due to the flexibility they provide, allowing companies to operate as if they were native Ghanaian businesses.
The process of creating an LLC in Ghana involves several essential steps, including registering the business’s physical location and mailing address, determining the number of shares, selecting a company secretary, and submitting all requisite documentation to the relevant authorities. Acquiring the certificate of incorporation and launching business operations are also integral aspects of this process.
For businesses seeking to streamline the subsidiary incorporation process while ensuring full compliance with local, state, and federal laws, partnering with our specialized services can be a game-changer. Our services are meticulously designed to simplify the incorporation journey, mitigate associated risks, and ultimately save our clients valuable time and resources.
