Staying compliant with Ghana's labour regulations is crucial for building a reputable and successful business. The rules around minimum wage and employment contracts form the foundation of a fair and productive employer-employee relationship. This guide breaks down what Ghanaian businesses need to know to operate within the law and foster a positive work environment.

1. The 2024 Minimum Wage: Key Facts

The National Daily Minimum Wage is reviewed annually, and adherence to the current rate is mandatory for most employers.

• Current Rate: For 2025, the daily minimum wage is set at GH¢19.97, an increase from the 2024 rate of GH¢18.15.
• Who It Covers: This rate applies to all workers across all sectors, with limited exceptions for trainees and apprentices. It's important to note that while domestic and agricultural workers may have different structures, they are still entitled to a fair minimum wage as stipulated by law or collective agreements.
• Sector-Specific Rates: Certain industries with strong labour unions (e.g., banking, mining, manufacturing) often negotiate higher wages through Collective Bargaining Agreements (CBAs). The national minimum wage is a floor, not a ceiling.

🔑 Key Takeaway: Paying below the mandated minimum wage is illegal. Always use the national standard as your baseline.

2. Crafting Legally Sound Employment Contracts

A clear, written contract is your first line of defense against future disputes. Ghana’s Labour Act, 2003 (Act 651) requires that every employment contract includes:

• Parties Involved: Full names and details of both employer and employee.
• Role & Location: A clear job title, description, and primary place of work.
• Remuneration: The agreed salary, which must meet or exceed the national minimum wage, and details on payment frequency.
• Working Hours: Stipulation that hours shall not exceed 8 hours per day or 40 hours per week.
• Leave Policy: Entitlements to annual, sick, and maternity/paternity leave.
• Termination Clauses: Conditions and required notice periods for ending the employment.
• SSNIT Registration: Confirmation that the employee will be registered with the Social Security and National Insurance Trust (mandatory by law).

📝 Contract Types:

• Permanent (Indefinite): Ongoing employment with no fixed end date.
• Fixed-Term: For specific projects or temporary needs, ending automatically on a set date.
• Casual: Even short-term or casual agreements must be documented and comply with minimum wage laws.

Critical Note: While verbal agreements are technically binding, they are incredibly difficult to enforce. A detailed written contract protects both you and your employee.

3. The High Cost of Non-Compliance

Ignoring these regulations carries serious consequences that can harm your business financially and reputationally.

• Financial Penalties: The Labour Commission can impose substantial fines for violations, such as underpayment or lack of a proper contract.
• Employee Litigation: Workers can sue for unpaid wages, unfair dismissal, or denial of benefits, leading to costly legal fees and settlement payouts.
• SSNIT Liabilities: Failure to register employees can result in mandatory back-payments of contributions plus significant penalties and interest.
• Reputational Damage: News of non-compliance can cripple your ability to attract top talent and erode customer trust.

A Real Example: In 2023, a Ghanaian company was fined over GH¢50,000 for failing to pay the correct minimum wage to its staff.

4. Best Practices for Compliant Businesses

Protect your business and build a loyal workforce by implementing these proactive steps:

1. Conduct Annual Salary Reviews: Proactively adjust pay scales each year to align with the new minimum wage announcement.
2. Document Everything: Use written contracts for every hire, without exception. This includes casual, temporary, and fixed-term workers.
3. Prioritize SSNIT Registration: Enroll every eligible employee with SSNIT within the legally required 14 days of hiring.
4. Invest in HR Training: Ensure your HR and management teams are consistently trained on the latest provisions of the Labour Act.
5. Seek Expert Advice: For complex situations—such as executive contracts, foreign staff, or interpreting CBAs—always consult a legal expert specializing in Ghanaian labour law.

Conclusion

Compliance with minimum wage and contract laws is not just a legal obligation—it's a strategic business investment. It minimizes risk, enhances your company’s reputation, and demonstrates a commitment to your employees' well-being.

Your Action Plan:

• Audit your current payroll and contracts.
• Update all salaries to at least GH¢19.97 per day.
• Formalize all working relationships with clear, written agreements.

When in doubt, seek professional guidance to ensure your business is built on a solid, compliant foundation.