COUNTRY GUIDE
A short guide to building a dedicated offshore team in Ghana
Get startedAccra
English
34.43 million
GMT +00:00
~50,000
Ghanaian Cedi (GHS)
$1 billion
$121 million (in 2024)
Accra
English
34.43 million
GMT +00:00
~50,000
Ghanaian Cedi (GHS)
$1 billion
$121 million (in 2024)
Ghana’s tech industry is rapidly emerging as a key pillar of the national economy. Driven by a young, tech-savvy population and strong mobile adoption, the country has developed a growing ecosystem of startups and digital services.
The industry spans across sectors such as fintech, e-commerce, healthtech, and education technology, with a strong emphasis on mobile-first solutions. Local and international investors are increasingly active, supporting early-stage ventures and digital infrastructure projects.
Government policy has begun to prioritize digital transformation, with a focus on digital skills, regulatory reform, and ecosystem development. Despite challenges like limited access to funding and infrastructure gaps, Ghana is steadily becoming a regional hub for digital innovation in West Africa.
Payroll cycle
In Ghana, the payroll cycle typically follows a monthly schedule, with employees receiving their salaries at the end of each month, usually between the 25th and the last working day. This monthly payment structure is the standard across both public and private sectors, although some informal or contractual roles may follow a weekly or bi-weekly cycle.
Employer taxes
First and foremost is the contribution to the Social Security and National Insurance Trust (SSNIT). Employers must pay 13% of an employee’s basic salary toward SSNIT Tier 1, and additionally 5% toward the Tier 2 occupational pension scheme—funds which are managed by private pension trustees. Altogether, this means employers contribute a total of 18% of basic salary exclusively for social security purposes (13% Tier 1 + 5% Tier 2).
Employers must also deduct income tax (PAYE) from employees' salaries and submit it directly to the Ghana Revenue Authority on their behalf. Although this deduction technically comes from the employee's salary, employers execute the deduction on their behalf. PAYE follows a progressive tax scale for resident workers, while non-residents are taxed at a flat rate of 25% on Ghana-sourced income.
Beyond that, there are typically no additional employer-specific payroll taxes imposed in Ghana; mandatory deductions are limited to SSNIT contributions and facilitating PAYE withholding. Employers must remit both SSNIT payments and PAYE withholdings to the relevant agencies by the 14th (for SSNIT) and 15th (for PAYE) of the month following salary payments to avoid penalties
Overtime pay
In Ghana, overtime applies when employees work beyond the standard eight hours per day or 40 hours per week. The Labour Act requires that overtime be compensated, though it does not set a fixed rate.
The common practice is to pay 1.5 times the normal hourly rate, and sometimes double time for night, weekend, or holiday work. Managers and certain senior staff may be exempt. Overtime terms should be clearly stated in the employment contract, and prior approval is usually required.
Paid leave
Employees are entitled to at least 15 working days of paid annual leave after completing 12 months of uninterrupted service. This leave is separate from public holidays and sick leave, which do not reduce the annual leave entitlement.
Leave must be taken within the calendar year unless otherwise agreed, and it cannot be forfeited or converted to cash unless the employee is leaving the company. Employers must ensure leave is scheduled in consultation with the employee, and it cannot be interrupted once started except in emergencies.
Sick leave
In summary, while Ghanaian law allows for medically certified sick leave without reducing annual leave, the law does not guarantee paid sick days or set a maximum duration. Paid sick leave (typically around 10 days) depends on employer policy rather than statutory requirement.
Public and provincial holidays
Ghana has 13 nationally recognized public holidays each year.
Notice period
For contracts with a fixed duration, no notice is required if the contract ends on the agreed date. However, for contracts without a fixed term, the law specifies the following minimum notice periods:
Instead of giving notice, either party can opt to pay wages in lieu of notice (i.e. pay for the notice period without requiring the person to work through it). In cases of serious misconduct, termination can be immediate without notice, provided there is valid justification and due process.
13th Month Bonus
In Ghana, neither the Labour Act nor any other statutory regulation mandates a 13th‑month bonus. There is no legal requirement to pay any extra monthly salary beyond the agreed-upon compensation.
That said, some employers do grant a year-end bonus equivalent to one month’s pay as a customary gesture though this is entirely at their discretion, typically based on performance and seniority.
Are you interested in scaling software development in Africa? Ghana is a smart choice.
Ghana is quickly becoming a trusted hub for global tech teams. With a strong education system, a vibrant startup ecosystem, and an expanding pool of skilled developers, the country offers reliable access to talent across a range of modern technologies.
For companies seeking flexibility, staff augmentation in Ghana allows you to work with top developers without the complexity of setting up a local entity. Through established local partners, you can onboard vetted engineers quickly, while payroll, compliance, and HR are fully managed on your behalf. This makes it easy to scale your team as needed and maintain focus on your product roadmap.
Whether you’re scaling operations or accelerating delivery, Ghana’s developer community can support your growth with agility and confidence.
Looking to hire software developers in Ghana? Contact us to explore flexible, cost-effective hiring solutions.
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Ghana’s IT industry has evolved into one of West Africa’s most promising digital sectors, driven by mobile adoption, a youthful population, and proactive public policy. The country hosts a vibrant mix of startups, telecom providers, software firms, and digital service platforms. Accra, in particular, has become a regional tech hub, supported by innovation centers, accelerators, and global partnerships. From fintech and healthtech to agritech and e-learning, the industry is diversified and increasingly export-oriented.
As digital demand grows across Africa, Ghana is attracting increasing interest from investors and international companies. The country offers a stable political environment, expanding internet infrastructure, and a growing talent base of software engineers, IT professionals, and data specialists. With government-backed initiatives promoting digital transformation, the IT sector is expected to play a larger role in cross-border digital trade in the years ahead.
Ghana’s tech talent pool is steadily expanding into one of West Africa’s more promising ecosystems. According to estimates, Ghana is home to roughly 20,500 professional software developers, placing it among Africa’s top 10 in absolute developer count. In relative terms, this translates to approximately 660 developers per million people, signaling a respectable density of technical skills per capita
The talent base is bolstered by vibrant innovation hubs (over 25 tech incubators and co-working spaces across the country), like MEST Africa in Accra, Kumasi Hive, Impact Hub Accra, Mobile Web Ghana, and iSpace Foundation. These spaces play a central role in nurturing both software and hardware expertise through training and startup support.
When operating in Ghana’s IT sector, businesses must navigate several legal and regulatory frameworks to remain compliant and competitive. These considerations span employment, taxation, data protection, and sector-specific licensing.
Ghana’s Labour Act, 2003 (Act 651) governs all employment relationships, including contracts and employee rights. Employers must comply with requirements related to PAYE (income tax withholding), social security contributions (SSNIT and Tier 2 pensions), and employee benefits such as annual leave and statutory holidays.
Data Protection Act, 2012 (Act 843) requires any organization that collects, processes, or stores personal data to register with the Data Protection Commission (DPC). Businesses must ensure lawful data processing, user consent, and security safeguards, especially when handling customer or employee information.
In the telecom and IT space, service providers and ISPs must obtain licenses from the National Communications Authority (NCA). These licenses cover everything from infrastructure deployment to cybersecurity compliance, especially for companies dealing in cloud services, internet access, or digital payments.
Foreign companies looking to operate locally are expected to register with the Registrar General’s Department and meet investment thresholds set by the Ghana Investment Promotion Centre (GIPC). Additionally, regulations around intellectual property, cybercrime, and electronic transactions are governed by laws such as the Electronic Communications Act and the Cybersecurity Act, 2020.
To establish a dedicated development team in Ghana, you have two main options:
Communication and collaboration with software development teams in Ghana are generally seamless, thanks to strong English proficiency, cultural professionalism, and familiarity with global tools like Slack, Zoom, Jira, and GitHub. Developers are accustomed to remote workflows and agile practices, making them well-suited for distributed teams. With Ghana operating on GMT, there's favorable timezone overlap with Europe and partial alignment with North America, allowing for real-time coordination.
While Ghana’s tech ecosystem offers strong potential, companies may encounter a few common challenges when building or managing development teams.
One challenge is the limited supply of senior or highly specialized talent, especially in advanced fields like AI or DevOps. To address this, companies can invest in upskilling programs, pair junior staff with remote senior mentors, or partner with local training institutes.
Another issue is infrastructure variability, such as occasional internet instability or power outages in some areas. This can be mitigated by offering co-working stipends, ensuring team members have access to reliable spaces with backup power and fast internet.
Lastly, navigating local compliance and payroll regulations may be complex for foreign employers, but this can be simplified by working with an EOR or staff augmentation partner.
Ghana is emerging as a growing player in Africa’s outsourcing landscape, particularly in IT and business process services. With an English-speaking workforce, competitive labor costs, and improving infrastructure, the country is attracting interest from companies seeking remote developers, support teams, and digital service providers.
Recent trends show a shift toward AI-assisted customer service, flexible staffing models, and remote delivery of software and cloud-based services. While Ghana’s outsourcing industry is still smaller than that of countries like South Africa or Egypt, its government and private sector are actively investing in tech hubs and training programs to position the country as a competitive outsourcing destination in West Africa.
For companies looking to expand or outsource in Africa, Ghana presents a strong opportunity. Businesses are advised to partner with local experts or staff augmentation providers to simplify hiring, payroll, and compliance. Investing in training and offering clear career growth paths can also help attract and retain top talent in a competitive market. Leveraging co-working spaces and hybrid work models can reduce infrastructure risks while maintaining team productivity.
Looking ahead, Ghana’s tech sector is expected to continue growing steadily, driven by government support, digital adoption, and increasing foreign interest. With its young, skilled workforce and improving connectivity, Ghana is well-positioned to become a regional tech hub, offering long-term value for companies willing to invest early and build strong local partnerships.
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