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Ghana

Basic Economic Summary

Ghana is a mixed economy that can also be considered as an emerging designated digital economy. With the economic plan target known as the 'Ghana Vision 2020', the economy envisions itself as the first African country to become a developed country between the years 2020 and 2029, and a newly industrialized country between 2030 and 2039. 

Ghana is classified as a middle-income economy wherein the services industry accounts for about 50% of the GDP, followed by the manufacturing industry that accounts for 24.1%, extractive industries that accounts for about 5%, and taxes that account for about 20.9% of the GDP.

Overview

  • Local Languages: English, Akan, Hausa
  • Capital: Accra
  • Major Economic Hubs: Accra, Kumasi, Tamale, Cape Coast
  • Currency: Ghanaian Cedi (GHS)
  • Population (2019): 31.97 million 
  • Time Zone: UTC (GMT)
  • Date Format: dd/mm/yyyy; mm/dd/yyyy

Useful Information

  • GDP Per Capita (in USD): 1960
  • Exchange Rate (GHS/USD): 0.16
  • PISA Ranking (2018): Not Available


Local Universities

Top Local Universities

University Rankings
University of Ghana Ranking in Ghana: 1

World Ranking: 1130

Kwame Nkrumah University of Science & Technology Ranking in Ghana: 2

World Ranking: 1409

University of Cape Coast Ranking in Ghana: 3

World Ranking: 2274

University for Development Studies Ranking in Ghana: 4

World Ranking: 2705

University of Education Winneba Ranking in Ghana: 5

World Ranking: 3500

Further information on the universities in Ghana can be found on Webometrics.

Salary Data

Average Salary of Jobs (Per Month)

The table below shows the average salaries of some jobs in Ghana. More information about average salaries in Ghana can be found on Paylab.

Job Title Salary Range (in GHS) Salary Range (in USD)
Technical Product Engineer 1447 - 3861 251.05 - 669.88
Software Developer 1425 - 7221 247.25 - 1252.85
Data Analyst 1331 - 4293 230.93 - 767.39
UX Designer 1331 – 4423 230.93 - 767.39
Project Manager 1583 – 5439 274.65 - 943.66
Sales Executive 1421 – 4630 246.54 – 803.3
Chief Accountant 1309 - 4127 227.11 – 716.03

The average salary an employee in Ghana withdraws per month is 5,070 GHS with the lowest average being 1,280 GHS and the highest average being 22,600 GHS. A key piece of information that must be considered is that the average salary differs on the basis of location, industry, and the profession of the employee. You can find the average salaries in Ghana on Salary Explorer.


Talent Sourcing Tips

Taxes

Employer Payroll Tax

Employers need to contribute 13% of the wages to social security.

Employee Payroll Tax

Employees need to contribute 5.5% of the wages to social security.

Employee Income Tax

Income Group (in GHS) Taxes
0 - 3828 0%
3829 - 5029 5%
5030 - 6470 10%
6471 - 42,471 17.5%
42,472 - 239,999 25%
240,000 and above 30%


Minimum Wage & Payroll

Minimum Wage

The minimum wage in Ghana is GHS 11.82 per day.

Payroll Cycle

The payroll cycle followed in Ghana is monthly, however it is common for companies to pay their employees every 2 weeks. Companies usually pay their employees by the last day of the month.

Bonus

13th month salary

Every employee is entitled to 13th month pay as long as they have worked for at least one calendar month during the year. They are entitled to a bonus of 1/12th of the total basic salary earned during the calendar year.

Employee Stock Options

Employee Stock Options are not mandatory in Ghana. However, it may be provided as a part of employees’ compensation.

Working Hours & Statutory Leave

Working hours

The usual working hours in Ghana is from 8 am until 5 pm with a minimum break of 30 minutes. The maximum working hours per week are 40.

Overtime pay

The law does not fix the rate of overtime remuneration but overtime hours on weekdays are usually paid at 150% of the normal hourly rate. For weekends and public holidays, overtime pay is at 200% of the normal hourly rate.

Public Holidays

There are a total of 13 public holidays in Ghana. A list of the public holidays in Ghana can be found here.

Annual Paid Leave

An employee is entitled to 15 working days of fully paid leave after completion of 12 months of continuous service under the same employer.

Sick Leave

There is no law governing sick leaves. However, sick leaves must be certified by a medical practitioner, and is independent of the annual leave.

Parental Leave

Maternity Leave

Female workers are entitled to 12 weeks of maternity leave with full pay. Pregnant workers must provide a medical certificate issued by a medical practitioner, indicating the expected date of delivery. Maternity leave can be extended by an additional two (2) weeks in case of caesarean delivery, abnormal birth or twin (or more) births.

Maternity leave might also be extended in case of any complications in the delivery. The maximum leave period is not mentioned in local law.

Paternity Leave

There is no provision in the law for paid or unpaid paternity leave.

Offboarding & Termination

Termination Process

Termination can be done by written notice by either party given proper reasoning. Improper reasoning for termination is as follows:

  • The employee intends to join a trade union
  • If the employee is pregnant or is absent due to maternity leave
  • If the employee is terminated for the reason of race or religion
  • If the employee is disabled
  • If the employee is forced to terminate due to inaction of the employer if the employee has lodged multiple harassment complaints

Notice Period

Contract Period Notice Period
Weekly contract 7 days notice period
Less than 3 years 2 weeks notice or 2 weeks pay in lieu of notice
3 years or more 1 month’s notice or 1 month’s pay in lieu of notice

Severance Pay

There is a provision for redundancy pay subject to negotiation between the employer and the worker or trade union. In case of dismissals for non economic reasons, there is no severance pay.

Probation period

The probation period recognized by law is that which is agreed upon by the employer and employee.

Insurance

Employers with 15 or more employees must take out a group life insurance policy covering all employees; however, the level of coverage is not specified. The employers also must insure their liability for workmen’s compensation under the Workmen’s Compensation Act 1987. 

Workers and employers jointly contribute two and half percent (2.5%) of their total contribution (18.5%) to the Social Security and Pensions Scheme every month for medical insurance.

VAT

The standard VAT rate in Ghana is 12.5%

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