Updated on: 2025/08/04 14:03 (UTC)
Overview
Ghana, which officially is known as the Republic of Ghana, is in western Africa. Ghana is bordered by the Gulf of Guinea to the South, Burkina Faso to the north, Cote d’Ivoire to the west, and Togo to the east. Ghana is a constitutional democracy with 16 first-order administrative divisions called administrative regions. They are Ahafo, Ashanti, Bono, Bono East, Central, Eastern, Greater Accra, North East, Northern, Oti, Savannah, Upper East, Upper West, Volta, Western, and Western North.
Ghana’s currency is the Ghanaian cedi.
Employers in Ghana are responsible for withholding income taxes from employees, withholding and contributing to social taxes for their employees, and providing workers with various labor related benefits in accordance with the Labor Act.
Foreign workers in Ghana are subject to a flat tax rate instead of being taxed on a progressive scale as Ghana nationals. Foreign workers are entitled to the same benefits as Ghana nationals under the Labor Act.
Ghanian citizens working in the U.S. must comply with the appropriate visa requirements, labor, and tax laws. Work within the U.S. states and territories is covered by various labor laws.
CURRENCY DETAILS
The currency of Ghana is the Ghanaian cedi (GH₵), also known as the third cedi and known simply as the cedi. The internationally recognized three-letter currency code for the Ghanaian cedi is GHS, with this currency code differentiating the current Ghanaian cedi from the second Ghanaian cedi, which while no longer in use still is recognized with the three-letter currency code of GHC. The plural form of cedi is cedis.
When an amount of cedis is written using the currency symbol GH₵, its variant Gh₵, or the currency symbol ₵ without letters before it as part of the symbol, the symbol precedes the numerical value with no space between the numerical value and symbol.
When an amount of cedis is written using the currency symbol GH¢ or one of its variants (Gh¢, GH ¢, and Gh ¢), the symbol precedes the numerical value with no space, or less commonly a space, between the numerical value and symbol. The currency symbol GH¢ contains the currency symbol ¢, which while commonly used as the currency symbol for cent subdivisions of integer currencies also is used as part of the currency symbol GH¢ for whole amounts of cedis because the currency symbol ¢ is derived from the letter C, the first letter of cedis. The currency symbol ¢ sometimes is itself used as the currency symbol for the Ghanaian cedi, and when an amount of cedis is written using the currency symbol ¢, it has the same placement treatment as the currency symbol GH¢.
One-hundredth ( 1 ⁄ 100 ) of a cedi is referred to as a pesewa, with the plural form of pesewas.
TAXES
Ghana’s national government enacts laws relating to income tax. Employers are required to withhold income tax and make remittances using a Pay-As-You-Earn (PAYE) system. Employers are also responsible for withholding amounts for social taxes in addition to contributing to their employees’ social security benefits.
The tax year in Ghana is the calendar year, Jan. 1 to Dec. 31.
Coronavirus (Covid-19) Guidance: Employers with tax liabilities owed to the Ghana Revenue Authority that pay them in full by June 30, 2020, may apply for a waiver of the associated penalties.
Income Taxes
Income taxes are administered by the Ghana Revenue Authority. The Internal Revenue Act regulates income tax procedures.
Coverage: Employers are required to cover all employees and withhold income taxes. Employers are defined as those who employ and remunerate employees.
Employees: Employees are defined in the Internal Revenue Code as an individual in employment by another person. Individuals are considered residents of Ghana for a year of taxation if they are present in Ghana for up to 183 days in a 12 month period.
Rates and Thresholds: Income tax rates are levied on a progressive scale for residents, with rates ranging from zero to 30%. In the country’s progressive income tax system, portions of an individual’s income are allocated to the country’s personal income tax brackets, and each portion of income allocated to a tax bracket is taxed at the tax rate applicable to that tax bracket.
Effective since Jan. 1, 2022, Ghana’s personal income tax rates for residents and minimum and maximum amounts of annual and monthly income for each tax bracket are as follows:| Range of Annual Income (Cedis) | Range of Monthly Income (Cedis) | Income Tax Rate |
|---|---|---|
| Up to GH₵4,380 | Up to GH₵365 | Zero |
| More than GH₵4,380 and up to GH₵5,700 | More than GH₵365 and up to GH₵475 | 5% |
| More than GH₵5,700 and up to GH₵7,260 | More than GH₵475 and up to GH₵605 | 10% |
| More than GH₵7,260 and up to GH₵43,260 | More than GH₵605 and up to GH₵3,605 | 17.5% |
| More than GH₵43,260 and up to GH₵240,000 | More than GH₵3,605 and up to GH₵20,000 | 25% |
| More than GH₵240,000 | More than GH₵20,000 | 30% |
| Range of Annual Income (Cedis) | Range of Monthly Income (Cedis) | Income Tax Rate |
|---|---|---|
| Up to GH₵3,828 | Up to GH₵319 | Zero |
| More than GH₵3,828 and up to GH₵5,028 | More than GH₵319 and up to GH₵419 | 5% |
| More than GH₵5,028 and up to GH₵6,468 | More than GH₵419 and up to GH₵539 | 10% |
| More than GH₵6,468 and up to GH₵42,468 | More than GH₵539 and up to GH₵3,539 | 17.5% |
| More than GH₵42,468 and up to GH₵240,000 | More than GH₵3,539 and up to GH₵20,000 | 25% |
| More than GH₵240,000 | More than GH₵20,000 | 30% |
Employees also may be subject to an additional tax for benefits-in-kind that are provided by an employer. This additional tax applies to accommodation, vehicles, and bonuses, and may range from 2.5% to 12.5%.
Effective since Jan. 1, 2019, as had been in effect before Aug. 1, 2018, nonresidents in Ghana are subject to a flat income tax rate of 20%. Effective from Aug. 1, 2018, to Dec. 31, 2018, nonresidents in Ghana are subject to a flat income tax rate of 25%.
Registration: Employers and employees that are liable to withhold and/or pay tax are required to register with the Ghana Revenue Authority.
Taxable Amounts: Income subject to taxation in Ghana includes the full amount income from business, employment or investment accruing in Ghana in addition to, for residents of Ghana, any amount from income accruing or derived from outside Ghana which is remitted to or transmitted into Ghana.
Amounts that are not considered taxable income include social security contributions, a reimbursement or discharge of a person’s dental, medical or health insurance expenses, severance pay, and night duty allowances.
Withholding Methods: Employers are required to withhold income taxes for employees using the Pay-As-You-Earn (PAYE) system. Withholding rates are published by the Ghana Revenue Authority.
Returns and Remittance: Withheld taxes must be remitted by employers within 15 days after the end of each month for the previous month of income.
Employers must submit annual returns for their employees by April 30 of the year following the tax year of assessment. Data regarding Pay-As-You-Earn deductions are submitted to the Ghana Revenue Authority using monthly Form DT 0107 and annual Form DT 0108.
Annual tax returns for individuals must be completed and submitted by four months after the end of the tax year in question.
Income tax returns are not required for those who are paid less during a year than the minimum amount of annual income upon which income tax is assessed.
Employers filing income tax payments and national health insurance to the Ghana Revenue Authority can use the Ghana online tax portal.
Recordkeeping: Tax records generally must be kept for six years.
Penalties: An employer that deliberately or recklessly fails to maintain proper records is liable to pay a penalty equal to 75% of the amount of tax payable for the year, or a lesser amount in any other case.
An employer that fails to pay tax on or before the due date is liable to pay an interest of 125% of the amount due, compounded monthly, in addition to the tax unpaid.
An employer that fails to file a return on or before the due date is liable to pay a penalty equal to four currency points, in the case of entities, and a penalty equal to two currency points, in the case of individuals, for each day that the return remains outstanding. Employers who fail to file returns within four months after the imposition of penalty for non-filing shall be subject to prosecution.
Social Taxes
The National Pensions Regulatory Authority regulates the Ghana’s three-tier pension system.
The first tier is a basic national social security scheme with mandatory employer and employee contributions, the second tier is an occupational pension scheme that is mandatory for employees and privately managed by trustees licensed by the National Pensions Regulatory Authority and pension fund managers licensed by the Security and Exchange Commission, and the third tier is for voluntary provident fund and pension schemes.
The first tier is regulated by the Social Security Law and administered by the Social Security and National Insurance Trust (SSNIT). Benefits covered under the first-tier include old age pensions, invalidity pensions, survivors’ benefits, and health insurance benefits.
Coverage: Employers are required to contribute to and withhold social taxes from all employees. Self-employed individuals can participate through voluntary coverage.
Rates and Thresholds: Employers must contribute 13% of each employee’s basic salary to the SSNIT. Employees must contribute 5.5% of their basic salary to the SSNIT. Self-employed individuals who are voluntary contributors are assessed a contribution rate of 18.5% of declared income.
Registration: Employers are required to register with the National Pensions Regulatory Authority and the Social Security amd National Insurance Trustfor all applicable schemes. The application cost for registration is GH1,500.
Taxable Amounts: All remuneration earned by an employee from an employer is subject to social taxes.
Returns and Remittance: The contributions are to be remitted to the SSNIT within 14 days of the end of each month for income from the previous month. Remittances are to be divided as follows: 13.5% of contributions are remitted to the first-tier pension scheme and 5% of contributions are remitted to the second-tier occupational scheme, which is privately managed by trustees approved and licensed by the Board of the National Pension Regulatory Authority. Of the 13.5% of contributions remitted to the first-tier pension scheme, 2.5% is remitted to the National Health Insurance Scheme.
Penalties: Employers that fail to timely pay contributions are liable on summary conviction to a fine equal to 2,000 penalty units, imprisonment of up to two years, or both.
Penalties for other offenses may include fines of up to 2,500 penalty units, imprisonment of up to five years, or both.
Other Taxes
Ghana’s national government does not assess any taxes on employment income other than those covered in the Income Taxes and Social Taxes sections of this primer.
State/Jurisdiction Taxes
Taxes on employment income are not assessed by any of Ghana’s administrative regions or local jurisdictions.
COMPENSATION AND BENEFITS
The National Labour Commission and The Labor Act of 2003 regulate requirements regarding minimum wage, overtime, hours of work, holidays, leave, wage payment, and termination pay. The Workmen’s Compensation Act covers worker’s compensation, and retirement plans are covered by social tax contributions.
Minimum Wage
The minimum wage is set by the National Tripartite Committee, which consists of representatives from Ghana’s Ministry of Employment and Labour Relations, the Ghana Employers’ Association, and Ghana’s Trades Union Congress.
Effective for 2022, Ghana’s daily minimum wage is GH₵13.53. Effective from June 4, to Dec. 31, 2021, Ghana’s daily minimum wage was GH₵12.53. Effective from Jan. 1, 2020, to June 3, 2021, Ghana’s daily minimum wage was GH₵11.82.
Overtime
The Labor Act states that workers are not allowed to work more than eight hours in a day unless they are being paid a fixed premium for overtime work. However, a rate for overtime work is not specified. General practice for overtime pay is 150% of an employee’s regular rate of pay for overtime worked on the weekdays and 200% of regular pay for overtime worked on the weekend.
Hours of Work
Generally, maximum hours of work are eight hours per day and 40 hours per week. Employers are required to grant employees 48 hours of rest every seven days of work, which generally is given on Saturday and Sunday.
Night work is defined as work done between 10 p.m. and 7 a.m. Pregnant women are not permitted to do night work.
Holidays
The government recognizes 13 public holidays. Employers must provide employees with paid leave on these days.
The public holidays are:
- Jan. 1: New Year’s Day.
- Jan. 7: Constitution Day.
- March 6: Independence Day.
- Good Friday, the Friday before Easter Sunday.
- Easter Monday, the Monday after Easter Sunday.
- May 1: May Day.
- Aug. 4: Founders’ Day.
- Sept. 21: Kwame Nkrumah Memorial Day.
- Farmers’ Day, the first Friday in December.
- Dec. 25: Christmas Day.
- Dec. 26: Boxing Day.
Additionally, the following Muslim holidays are celebrated, although they occur on different days each year:
- Eid-al-Fitr
- Eid-al-Adha
Leave
If an employee has worked at least one year of continuous service, a minimum of 15 days of vacation with pay can be taken. Leave can be taken at once or in two approximately equal parts. Employees are entitled to sick leave and pay according to the Labor Act, although the amount of time an employee may take per year for sick leave is not specified.
Maternity Leave: Employers must provide women with a minimum of 12 weeks off plus vacation for maternity leave. Employers must give female employees full remuneration during maternity leave. This leave can be extended for an additional two weeks if two or more babies are born. Illness caused by pregnancy also can qualify an employee to additional maternity leave. Employers are required to give nursing mothers an hour of remunerated break to nurse each day for up to a year.
Wage Payment
Employers are required to stipulate the payment of wages in legal tender in employment contracts.
Bonuses and Special Benefits
Ghana does not mandate employers to provide bonus payments to employees.
Termination Pay
An employment contract can be terminated at any time by either the employer or the employee so long as the following notice and severance pay are provided:
- if an employee has worked at least three years: one month’s notice or one month of pay in lieu of notice;
- if an employee has worked for two years: two weeks’ notice, or two weeks of pay in lieu of two weeks notice;
- if an employee has a week-to-week contract, seven days of notice.
At-will contracts may be terminated at any time without any required notice or pay. Required termination pay must include:
- any pay earned by an employee before termination;
- any deferred pay owed to the employee before termination;
- any sick pay or worker’s compensation owed to the employee; and for
- foreign workers, expenses for the journey and repatriation of expenses in respect to the worker and the worker’s family.
All termination pay must be given to the employee by the last day of employment as determined by the notice period. If notice period is not required, the termination pay is due the day after termination.
Workers’ Compensation
Worker’s Compensation is regulated in Ghana by the Workmen’s Compensation Act of 1987 and covers all private and public employees. Employers are required to compensate workers for all medical costs if workers are injured because of their employment. If an employee dies from an employment related issue, employers are required to pay for funeral fees up to GH₵5 million and compensate dependents with up to 60 months of the employee’s remuneration.
Recordkeeping
Ghana’s compensation and benefit recordkeeping laws could not be confirmed.
FOREIGN WORKERS
Foreign workers are entitled to the same rights as Ghana citizens and are generally covered by the same workplace laws. While Ghana nationals are taxed on a progressive scale according to income, foreign workers are taxed on income at a flat rate of 20%.
Visas: Foreign workers must obtain a work visa or immigration quota in order to work in Ghana. Foreigners are not permitted to engage in any work other than what is listed on the work permit or immigration quota. Work permits can be applied for through a consular office and must be submitted to the Director of Immigration in Ghana. Immigration quotas must be applied for through the Ghana Investment Promotion Center. Resident permits from the Director of Immigration must also be acquired before remaining in Ghana to work.
Citizens who are nationals of the Economic Community of West African States (ECOWAS) have different and less stringent visa requirements.
Taxes: Effective since Jan. 1, 2019, as had been in effect before Aug. 1, 2018, nonresidents in Ghana are subject to a flat income tax rate of 20%. Effective from Aug. 1, 2018, to Dec. 31, 2018, nonresidents in Ghana are subject to a flat income tax rate of 25%.
Foreign workers who have tax liability while in Ghana are required to obtain and complete a tax clearance certificate to submit to an immigration officer before departing from Ghana.
Wages/Payments: Foreigners are permitted to be paid in a legal currency other than the cedi. Currency will be converted into cedis for tax purposes based on current exchange rates.
WORKING IN THE UNITED STATES
Foreign workers from Ghana must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate
U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.
For tax purposes, Ghanians are subject to U.S. employment-based taxation on income earned in the U.S. unless they work under specific visa types that exempt earnings from taxes.
State and local taxation of Ghanian workers also can apply.
The U.S. labor laws apply to all workers employed and providing services in the country.
Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.
Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the
Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.
Income Taxes:
Generally, nonresidents in the U.S. who are from Ghana and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.
A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Ghana and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c. Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the
Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.
An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the
Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.
Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.
Tax treaties: Ghana and the U.S. do not have a tax treaty.
Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.
Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.
Totalization Agreements: Ghana and the U.S. do not have a totalization agreement.
Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.
There are no particular requirements that employees be paid in U.S. dollars.
TREATY ARRANGEMENTS
Ghana has entered into multiple income tax treaties, but has not entered into an income tax treaty with the U.S. Ghana does not have a totalization agreement with the U.S. for social tax coverage purposes.
The countries with which Ghana has a bilateral income tax treaty in effect are Belgium, Czech Republic, Denmark, France, Germany, Italy, Mauritius, Netherlands, Singapore, South Africa, Switzerland, and the United Kingdom.
Ghana does not have any totalization agreements for social tax purposes in force.
RESOURCES
All resources are in English.
General
U.S. State Department: U.S. Relations With Ghana
CIA World Factbook: Ghana
Government of Ghana Official Portal
Currency Details
International Organization for Standardization: Currency Codes - ISO 4217
Unicode Consortium: Currency Symbols
United Nations: United Nations Terminology Database: Ghana
Taxes
Ghana Revenue Authority
U.S. Social Security Administration: Social Security Programs Throughout the World - Ghana
Social Security and National Insurance Trust
Income Tax Act, 2015
Income Tax Act, (Amendment), 2016
Internal Revenue Act
Amendments to the Internal Revenue Act
National Pensions Act, 2008
National Pensions (Amendment) Act, 2014
Income Tax (Amendment) Act, 2018 (Act 973)
Compensation and Benefits
Ministry of Employment and Labor Relations
National Pensions Regulatory Authority
National Pensions Regulatory Authority: Guidelines for Provident Fund Scheme as Employer Sponsored Scheme
Labor Act 2003
Workmen’s Compensation Act, 1987
Foreign Workers
Ghana Immigration Service
Ghana Embassy
Ministry of Foreign Affairs and Regional Integration
Working in the United States
U.S. Internal Revenue Service:
- IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
- IRS Publication 15, Circular E, Employer’s Tax Guide
- IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties
U.S. Labor Department, Foreign Labor Certification
Hiring Foreign Workers
U.S. Tax Treaties Summaries
Treaty Arrangements