Due to rising commodity prices and robust domestic demand, Ghana's economy is expected to gradually recover over the medium term. Ghana got $1 billion in SDRs from the IMF recently, a portion of which would be used to aid economic recovery. In the years 2021-23, annual growth is predicted to average 5.1 percent. Real per capita GDP is expected to rebound to pre-COVID-19 levels in 2021, after dropping by 1.7 percent in 2020.

As the government pursues its economic stimulus program, the fiscal deficit is anticipated to remain high. It is expected to fall to 14% of GDP in 2021 and 9.5 percent in 2023, still exceeding Ghana's 5% cap.

Ghana's monthly minimum wage rates are computed as a daily wage multiplied by 27 days. If an employee takes up additional hours at work, then the hours are regarded as overtime work. Thus, the minimum wage is computed as 4.33 times the work hours per week, or rather 12.53 Cedis ($2.07) daily.

Payroll in Ghana is done on a monthly basis, with payments due on the same day each month and no later than the final working day of the month. Some firms, on the other hand, choose to pay their employees biweekly.

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

The table below presents the progressive rates of income tax applicable to resident individuals for a tax year. Nonresidents are subject to income tax at a flat rate of 25%.

Parental Leave

Every female worker is entitled to 84 days (12 weeks) of fully paid maternity leave. Before the maternity leave is granted, the pregnant employee is required to present a medical certificate from a medical practitioner. This certificate must show the expected date for the pregnant employee’s confinement. In case of caesarean or abnormal births, the maternity leave is extended for two more weeks.

Paternity leave is not a legal provision in Ghana; however, in some instances, a one week leave can be granted by an organization upon a collective agreement.

The termination of employment in Ghana varies across organizations, depending on the employment agreement and contract. Either the employer or the employee can end the employment any time, though a written notice is required. In case of unfair termination, the employee can present a claim at the labor court.

When the employment termination is regarded as ‘at-will,’ the worker or employee can end the employment without notice. However, in case the ‘at will’ clause is missing  in the signed employment agreement, the employer is expected to pay the employee “in lieu of notice”.

Notice Period

The Ghana notice period follows the following guidelines:  

• If the contract is three or more years, a one-month notice is required or a one-month pay in lieu. 
• If the employment contract is below three years, there is a need for a two weeks’ notice or pay in lieu worthy the two weeks.  
• If the contract was a weekly one, there is a need for seven days notice
• If the contract is terminated willingly by either the employer or employee, no notice is required.