Effective March 1, 2025, Ghana has implemented a new national daily minimum wage of GHS 19.97. This is equivalent to USD 1.28. This marks a 10% increase from the 2024 rate of GHS 18.15. This was equivalent to USD 1.17.
Who Sets the Minimum Wage in Ghana?
The national minimum wage is determined by Ghana’s National Tripartite Committee (NTC), which consists of five representatives each from the government, employer associations, and trade unions. This committee is led by the Minister for Employment & Social Welfare, who officially announces and publishes the minimum wage in Ghana’s Gazette and other public platforms.
The minimum wage applies across the country to all employees except those in the Armed Forces, Prison Service, Security and Intelligence Agencies, and Police Service. It’s important to note that free trade zones operate under different conditions, where wage levels can be freely negotiated between employers and employees, as long as they align with International Labour Organization (ILO) conventions.
Role of Collective Agreements in Ghana
In some cases, collective agreements may stipulate a wage that is higher than the national minimum. If a collective agreement is determined by the Chief Labour Officer to be representative and appropriate for a broader class of employees doing similar work, it can be extended beyond the original parties. However, this extension must be published in the Official Gazette at least three months in advance.
Payroll Frequency in Ghana
There are no statutory requirements for how frequently employees must be paid in Ghana. This provides a high degree of flexibility for employers and employees to set their own terms in employment contracts or collective agreements. However, casual and temporary workers are typically paid on a daily basis.
Implications for Employers
Employers operating in Ghana or looking to expand into the region must ensure compliance with the updated minimum wage. It is essential to:
Update payroll systems to reflect the new daily wage.
Review existing employment contracts and collective agreements for consistency.
Stay informed about sector-specific rules or exemptions, especially in free trade zones.
With no required payroll frequency, companies also have the opportunity to structure compensation in a way that aligns with operational and employee needs.
Navigating Wage Compliance with Atlas
Atlas helps businesses stay compliant with local employment laws, including minimum wage regulations, through our global Employer of Record (EOR) services.
Whether you're hiring in Ghana or navigating employment in multiple markets, our platform and in-country experts ensure seamless onboarding, payroll, and compliance.