Employer of Record (EOR) in Ghana
An EOR in Ghana allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.
Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Ghana.
Quick Overview of EOR in Ghana
Expanding into Ghana doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Ghana's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like National Pension Scheme contributions, so you can focus on growing your business without the need to set up a costly local entity.
The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Ghana can be time-consuming and administratively complex. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.
How an EOR Works
Atlas HXM provides EOR services that ensure your business remains compliant with Ghana's labor laws while you focus on growing your operations, free from administrative and legal burdens.
Candidate Selection
Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Ghana's Labour Act requirements, and configuring payroll and statutory obligations correctly.
Employment Contracts
Atlas HXM drafts and administers employment contracts in compliance with Ghana's Labour Act. In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:
Job title and responsibilities
Salary, benefits, and working hours
Leave entitlements and notice periods
Payroll & Benefits Management
Payroll is processed in Ghanaian cedis (GHS), including:
Accurate tax withholdings and National Pension Scheme contributions
Statutory benefits such as annual leave and maternity benefits
The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Ghana's laws.
Ongoing HR Support
Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.
What to choose: EOR vs PEO
Work Life in Ghana
Ghana's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:
Employment Types:
Permanent: Ongoing employment with full statutory benefits.
Fixed-Term: Hired for a specific project or defined duration.
Temporary: Short-term assignments; entitled to statutory benefits like leave and overtime.
Probation Periods: Ghana's Labour Act does not specify maximum probation periods but references a "reasonable" period. Probation periods are typically 3 to 6 months and must be outlined in the employment contract. These periods allow employers to assess employee suitability before offering permanent employment. Employees can be dismissed during probation without notice and are not entitled to severance payments.
Working Hours & Overtime: In Ghana, the standard workweek is 40 hours, with a maximum of 8 hours per day. Employees must receive appropriate breaks during work periods. Overtime is defined as work beyond 8 hours per day or 40 hours per week, calculated over a 4-week reference period. Employers must establish clear overtime compensation rates before requiring additional hours, and the EOR ensures that all overtime is calculated correctly and complies with local regulations.
Leave Entitlements
Leave Type | Eligibility / Duration | Payment / Notes |
|---|---|---|
Annual Leave | Minimum of 15 working days after 12 months of continuous service | Paid by employer; can be taken in 2 approximately equal parts |
Maternity Leave | 12 weeks (extendable to 14 weeks for complications or in the case of the birth of 2 or more babies) | Full pay provided by employer with medical certificate |
Paternity Leave | No statutory provision | Not mandated by Ghana's Labour Act |
Sick Leave | Certified by medical practitioner | Labour Act silent on remuneration; doesn't count against annual leave |
Public Holidays | All statutory holidays | Paid; temporary/casual workers get 200% rate if working |
Vacation Leave | As per company policy / statutory minimum | Paid; unused leave paid proportionally upon termination |
Payroll & Benefits: Wages must comply with Ghana's minimum wage of GHS 21.77 daily (as of January 2026). Atlas HXM manages payroll in GHS, National Pension Scheme contributions, statutory benefits, bonuses, and supplemental benefits. Additional benefits can include private health insurance, transportation allowances, and professional development options.
Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Ghana's labor laws while businesses can focus on operations without administrative burdens.
What to Choose: Direct vs Indirect EOR
Taxes & Compliance
Ghana operates on a calendar-year tax system. Employers must remit personal income tax withholdings to the Ghana Revenue Authority within the first 15 days of the month following payment to employees. Year-end reconciliation is required by January 15th, with employers paying any shortfall by this deadline.
Category | Details |
|---|---|
Employer Payroll Tax | Income tax withholding obligation National Pension Scheme contributions (employer portion) No separate employer payroll tax beyond withholding |
Employee Payroll Tax | Residents: progressive income tax 0%–35% (highest rate for income exceeding GHS 600,000) Non-residents: flat 25% rate on Ghana-sourced income Employee pension contributions as percentage of gross salary |
Pension System | National Pension Scheme with mandatory employer/employee contributions Old-age pension at 60 with 15 years contributions (55 for hazardous work) The total mandatory contribution is 18.5% of basic salary (13% Employer, 5.5% Employee) |
VAT & EOR Costs: EOR services in Ghana may be subject to Value Added Tax depending on service structure and provider location. Ghana-based EOR services may apply standard VAT rates to service fees, while international providers may have different implications.
Atlas HXM handles tax compliance, including progressive income tax calculations, pension contributions, year-end filings, and expatriate tax considerations, ensuring businesses remain compliant with local laws while minimizing administrative burden.
Termination
Employees must give written notice for termination, with notice periods depending on contract duration: 1 month for contracts of 3+ years, 2 weeks for contracts under 3 years, and 7 days for weekly agreements. Severance pay is only mandatory during redundancy situations like company closures or mergers, with amounts negotiated between parties. The EOR helps ensure proper handling of terminations, including notice periods, final wages, and required documentation.
5 Things to Look for in an EOR Provider in Ghana
Local expertise and knowledge of Ghana's Labour Act, pension requirements, and Ghana Revenue Authority procedures.
Advanced technology for payroll, reporting, and HR system integration.
Experience in your industry.
Strong compliance track record and relationships with government agencies and legal advisors.
Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).
Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Atlas HXM's unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2026, Atlas HXM combines compliance, technology, and global expertise.
FAQs
How quickly can I hire employees in Ghana through an EOR?
With an EOR, you can typically hire employees in Ghana within 5-10 business days once candidate selection is complete, including contract preparation and compliance verification.
What is the minimum wage in Ghana for 2025?
The national daily minimum wage in Ghana is GHS 21.77 as of January 1, 2026
Are foreign nationals required to have work permits in Ghana?
Yes, all foreign nationals (except ECOWAS citizens under specific agreements) must obtain work permits and residence permits to work legally in Ghana.
What are the mandatory benefits for employees in Ghana?
Mandatory benefits include pension scheme enrolment, 15 days annual leave, 12 weeks paid maternity leave, public holiday pay, and workplace injury coverage.
How much notice is required for termination in Ghana?
Notice periods depend on contract duration: 1 month for contracts of 3+ years, 2 weeks for contracts under 3 years, and 7 days for weekly agreements.
What are the standard working hours in Ghana?
Standard working hours are 8 hours per day or 40 hours per week, with flexibility for different arrangements provided the average doesn't exceed these limits over a 4-week period.