Employer of Record in Ghana

What an EOR provider does in Ghana

An Employer of Record (EOR) is a third-party provider in Ghana that allows foreign employers to hire without establishing a local entity. An EOR provider, like Rivermate, becomes the legal employer in Ghana and manages payroll, taxes, mandatory benefits and compliance in accordance with local laws.

Rivermate’s EOR services are built on three pillars:

• Local HR experts who understand the Ghanaian market and employment laws.
• A network of partners that allows us to provide competitive benefits.
• The Rivermate platform that simplifies every aspect of the employment relationship.

Ghana labor market: A snapshot

The hiring market
Greatest hiring activity:	Accra: 80% of all formal job offerings are in Ghana’s capital city.
Onboarding timelines:	Locals: Usually 1 week, maximum 2 weeks Foreign nationals: Up to 2 months
In-demand roles:	From an international perspective: Technology, administration, customer service, sales, business development and marketing From a local perspective: Agricultural roles and logistics
Sectors with skills shortages:	Advanced technology, software development and digital integration.
Skilled construction workers, trade workers and agricultural labor.

The salary market
SSNIT contributions:	Total contribution: 18.5% Employer: 13% of basic salary Employee: 5.5% Remit 13.5% of the total contribution to the SSNIT and 5% to a Tier 2 scheme.
National daily minimum wage:	GHS 21.77 per day, as per the NTC agreement of November 9, 2025 and effective from January 1, 2026.
Personal income tax rates:	Residents are subject to tax rates of 0% to 35% First GHS 7,056 = 0% (as at September 1, 2026) Exceeding GHS 600,000 = 35%

Hiring in Ghana: An insider’s perspective

Hiring employees in a foreign country when you don’t know what to expect can be challenging. This is where the perspective of a local expert in Ghana can help steer you in the right direction and help you to understand what the process will be like.

The starting point: establishing a local entity

Legally hiring Ghanaian employees will require you to establish a legal entity. This isn’t a quick process, sometimes taking months to finalize the details. Once established, you still need the local infrastructure to process payroll and taxes, provide benefits and manage statutory requirements. This is where the value of an EOR provider becomes clearer. The legal entity and infrastructure already exist, allowing you to hire faster and remain compliant in Ghana.

Employment costs

One of the most challenging aspects of hiring in a foreign market is estimating the true cost of employment. Budgeting is often done in a foreign currency, like US dollars or euros and translating that into local currency creates some difficulty.

Employment costs include more than gross salary. The final total should include a fixed base salary, variable pay components (if applicable), statutory payroll taxes and contributions and future financial commitments, such as accrued leave and severance pay. When partnering with an EOR, you will receive a detailed compensation breakdown in the local currency (GHS). This will give you a solid foundation from which to make your candidate an offer.

Employment cost calculator

Employment contracts

According to Ghanaian labor laws, employment contracts of a period of six months or more, must be written and comply with the local regulations. The two most common types of work contracts used in Ghana are:

• An employment contract for full-time, part-time, fixed-term employees
• A service contract for independent contractors

An employment contract is used when a worker provides labor exclusively to a natural person or legal entity and is under their supervision or authority. The employer exercises control over the working hours, tasks, schedule and work processes.

A service contract is used when an individual provides agreed services to a company in exchange for compensation. The company has limited control over working hours, scheduling and how activities are completed.

Statutory employee rights and benefits

Both local and foreign employees are entitled to basic rights and benefits as prescribed by Ghanaian labor laws. These statutory employee benefits provide the minimum thresholds for employees. Better benefits can be offered in an employment contract or collective agreement.

Statutory benefits	Description
Working hours	Labor Act, Sub-part II, section 33: Maximum 8 hours a day or 40 hours a week, except for cases expressly provided for by the Labor Act.
Public holidays	13 nationally recognized holidays
Paid overtime	Labor Act, Sub-part II, section 35: Overtime is triggered when the employee exceeds the standard working hours established by the Labor Act. An employer must fix the rate of overtime pay before asking an employee to work extra hours.
Paid annual leave	Labor Act, Sub-part I, section 20-32: Workers are entitled to not less than 15 working days with full pay in any calendar year of continuous service.
Sick leave	The Labor Act does not mandate a specific minimum or maximum period of sick leave. Section 24 describes how to deal with sick leave that occurs during annual leave.
Paid maternity leave	Labor Act, Sub-part VI, section 57 A female employee is entitled to at least 12 weeks plus any annual leave she decides to take after her period of confinement. The employee is entitled to be paid her full remuneration and other benefits to which she is entitled.

Termination of employment

According to the Ghana Labor Act (Part III, section 17), a contract of employment may be terminated by providing a notice period as follows:

Contact duration	Notice period	Payment in lieu of notice
Less than three years	Two weeks	Two weeks
Three years and longer	One month	One month
Week-to-week	Seven days	Seven days

Remuneration

When a contract is terminated, an employer must provide the employee with the following (Ghana Labor Act, Part III, sections 18 and 30):

• Any remuneration earned by the worker before the termination.
• Any deferred pay due before the termination.
• Any compensation due to the worker as a result of sickness or accident.
• Annual leave entitlement in proportion to the period of service in the calendar year.

Payments must be made no later than the date of expiration of the notice. Where no notice is required, payments must be made no later than the next working day after the termination date.

The practical side of hiring foreign nationals in Ghana

Ghana has an active demand for skilled professionals in key sectors, but employers sometimes struggle to find the right candidate. Where there are skills shortages, Ghana allows employers to hire foreigners, provided the country’s quota system is followed.

Work and residence permits

For foreigners, you need a work permit and a residence permit which are usually tied together and processed as one application through the GIS. Fees are charged according to the type of visa/permit required. In practice, the processing timeline is between 4-5 weeks and the employee may begin work once the application has been submitted.

Important legislative amendments: In July 2026, the government enacted the Ghana Investment Promotion Authority Act, 2026 (Act1173), widely referred to as the GIPA Act, transforming the country’s foreign investment landscape. This act revises capital investment thresholds linked to expatriate quota entitlements. It also sets a new requirement for foreign enterprises to route the work permit application through GIPA, for recommendation and onward submission to the Ghana Immigration Service. The GIS retains the authority to approve or refuse the application.

Expat employment contracts

Employment contracts can be finalized once the work permit is approved. Contracts are governed by local labor laws and provide foreign employees with the same protections as Ghanaian nationals. Under the Labor Act, 2003, section 12, an employment contract for six months or longer must be in writing. This employment contract must express in clear terms the rights and obligations of both parties.

Termination of foreign work contracts

Termination of foreign work contracts must follow the procedures prescribed by the Ghana Labor Act. The foreign worker is entitled to remuneration as per Part III, Section 18 of the Labor Act but also additional payments for journey and repatriation expenses.

How Rivermate can help you hire compliantly in Ghana

Reasons for using an EOR in Ghana vary. Hiring without establishing a local entity is the most common reason, followed by labor market testing and relocating key employees to West Africa. An EOR company, like Rivermate, can hire your employee through its own legal entity. Rivermate is then responsible for:

• Providing compliant Ghanaian employment contracts for local and international employees.
• Payroll processing, tax withholding and benefits management.
• Ongoing HR administration.
• Compliance with Ghanaian regulations.

This leaves you free to manage day-to-day operations with the employee, knowing Rivermate's HR experts are taking care of them locally.

Ready to hire in Ghana?

Rivermate handles the complexities so you can hire with confidence in Ghana.

Talk to a Ghana Hiring Expert

Sources:

Youth Unemployment in Ghana: Structural Challenges, Underutilized Opportunities & Strategic Recommendations
https://www.gipc.gov.gh/wp-content/uploads/2023/05/LABOUR-ACT-2003-ACT-651.pdf
Minimum wage declaration January 1, 2026
Pay As You Earn (PAYE) – GRA
https://gra.gov.gh/wp-content/uploads/2026/09/Amendments-To-The-Income-Tax-2015-Act-896_Updated-1.pdf
Ghana - Individual - Taxes on personal income
Work and Residence Permit (Companies) – GIS
Ghana Investment Promotion Authority Act - Key Changes
Labour Act, 2003 ARRANGEMENT OF SECTIONS PART II