The first time many Ghanaian business owners run payroll, they realise they've been doing it wrong for months. Allowances included in the SSNIT base salary — when they shouldn't be. PAYE calculated on gross pay — instead of the reduced taxable income. Contributions remitted on the 20th — when the GRA deadline was the 15th. None of these are small mistakes; each one can attract penalties, disgruntled employees, or both.
Running payroll correctly in Ghana means knowing which deductions apply, in which order, and by which deadlines — every single month. This guide walks you through the entire process, step by step, with current figures and Ghana-specific context so you can pay your team accurately and stay fully compliant.
What Payroll in Ghana Actually Involves
Payroll is more than transferring salaries. For a Ghanaian employer, running payroll means:
Calculating each employee's PAYE (Pay As You Earn) income tax using the GRA's 7-band graduated scale
Deducting and remitting SSNIT Tier 1 contributions
Remitting Tier 2 occupational pension contributions to a licensed private trustee
Issuing a payslip to every employee showing all deductions
Filing a monthly PAYE return with the GRA by the 15th of the following month
Filing a monthly SSNIT schedule and remitting contributions by the 14th
Each step has a deadline. Each deadline carries a penalty if missed. Here's how to get it right.
Step 1: Register Your Business for PAYE and SSNIT
Before you can run payroll, you need two registrations:
1. GRA Taxpayer Portal — for PAYE Register at gra.gov.gh to get your Tax Identification Number (TIN). Since 2023, your Ghana Card (National Identification Authority number) also serves as your personal TIN — but businesses still need a separate registration on the GRA portal. Every new employee must also be registered and their TIN recorded on your payroll.
2. SSNIT Employer Self-Service Portal Register at ssnit.com.gh as an employer. Each employee needs their own SSNIT number — new hires who don't have one should apply directly at a SSNIT branch or online before their first payroll run.
Skipping registration doesn't exempt you from the obligation — it simply means you accumulate liability quietly until an audit surfaces it.
Step 2: Determine Each Employee's Basic Salary
In Ghana's payroll system, basic salary is the fixed, contractual amount — excluding all allowances. This matters because SSNIT contributions are calculated only on basic salary. Transport, housing, fuel, and risk allowances are excluded from the SSNIT base.
However, allowances are not automatically exempt from PAYE. Most regular allowances form part of total emoluments and are included in the PAYE calculation. The distinction is:
SSNIT base: Basic salary only
PAYE base: Total emoluments (basic salary + most regular allowances) minus SSNIT deduction and other approved reliefs
Getting this wrong — typically by using gross pay for both calculations — is the most common payroll error among Ghanaian SMEs.
Step 3: Calculate SSNIT Contributions
Using the confirmed 2025/2026 rates:
Contributor | Rate | Destination |
|---|---|---|
Employee | 5.5% of basic salary | Tier 1 (SSNIT) |
Employer | 10% of basic salary | Tier 1 (SSNIT) |
Employer | 3% of basic salary | Tier 2 (private trustee) |
Total | 18.5% | — |
The SSNIT insurable earnings ceiling is GHS 69,000 per month (effective January 2026). If an employee's basic salary exceeds this, contributions are capped — not calculated on the full amount.
Example — Employee on GHS 4,000 basic salary:
Employee SSNIT deduction: GHS 4,000 × 5.5% = GHS 220
Employer Tier 1 contribution: GHS 4,000 × 10% = GHS 400
Employer Tier 2 contribution: GHS 4,000 × 3% = GHS 120
The GHS 220 is deducted from the employee's pay. The GHS 520 employer portion is an additional cost to the business.
Step 4: Calculate PAYE Tax
PAYE is calculated on taxable income — which is total emoluments minus the SSNIT deduction (5.5%) and any other GRA-approved reliefs (mortgage interest, Tier 3 pension contributions up to 16.5% of basic salary).
Ghana uses 7 progressive annual tax bands (2025/2026):
Annual Income (GHS) | Monthly Equivalent | Tax Rate |
|---|---|---|
First 5,880 | First 490 | 0% |
Next 1,320 | Next 110 | 5% |
Next 1,560 | Next 130 | 10% |
Next 38,000 | Next 3,166.67 | 17.5% |
Next 192,000 | Next 16,000 | 25% |
Next 366,240 | Next 30,520 | 30% |
Above 605,000 | Above 50,416.67 | 35% |
Example — same employee on GHS 4,000 basic salary, no allowances:
Taxable income after SSNIT: GHS 4,000 − GHS 220 = GHS 3,780
PAYE on GHS 490 @ 0% = GHS 0
PAYE on GHS 110 @ 5% = GHS 5.50
PAYE on GHS 130 @ 10% = GHS 13
PAYE on remaining GHS 3,050 @ 17.5% = GHS 533.75
Total PAYE: GHS 552.25
Employee's net pay: GHS 4,000 − GHS 220 (SSNIT) − GHS 552.25 (PAYE) = GHS 3,227.75
Step 5: Issue Payslips
Every employee is legally entitled to a monthly payslip. Under the Labour Act, 2003 (Act 651), payslips must clearly show:
Gross pay (basic salary + allowances)
All deductions (SSNIT, PAYE, any others)
Net pay
Period covered
A payslip that doesn't itemise SSNIT and PAYE is non-compliant — and an employee who suspects under-deduction can report directly to the GRA or SSNIT.
Step 6: Remit Contributions and File Returns — On Time
Obligation | Deadline | Where to Remit |
|---|---|---|
SSNIT contributions | 14th of following month | SSNIT portal; GCB, Absa, Stanbic, or via MoMo |
Monthly PAYE return & payment | 15th of following month | GRA Taxpayer Portal; bank transfer or GhanaPay |
Annual payroll reconciliation | 30 April of following year | GRA Taxpayer Portal |
Late PAYE remittance attracts interest at 125% of the statutory rate plus potential penalties. Late SSNIT remittance also attracts interest under Act 766. For a business paying 10 employees, a single month of late remittance can generate hundreds of cedis in unnecessary charges.
Common Payroll Mistakes Ghanaian Businesses Make
Using gross salary for SSNIT — Only basic salary counts. Including transport or housing allowances overstates contributions.
Missing the Tier 2 remittance — Many SMEs remit SSNIT but forget the 3% Tier 2 contribution to their chosen private pension trustee. Both are mandatory.
Not registering new hires immediately — Unregistered employees are a liability in SSNIT audits and can lose pension entitlements they've already earned.
Paying cash without payslips — Common in informal businesses in markets like Makola or Kejetia. If you employ people, payslips are not optional.
Missing the annual reconciliation — The April 30th annual PAYE submission is separate from monthly returns and is frequently overlooked by small businesses.
Frequently Asked Questions
How is PAYE calculated in Ghana?
PAYE in Ghana is calculated using a 7-band progressive tax scale administered by the Ghana Revenue Authority (GRA). First, the employee's 5.5% SSNIT contribution is deducted from total emoluments to arrive at taxable income. That taxable income is then taxed at rates from 0% on the first GHS 490 per month up to 35% on income above GHS 50,416 per month. Employers deduct PAYE monthly and remit it to the GRA by the 15th of the following month.
What is the deadline for filing payroll taxes in Ghana?
In Ghana, employers must file monthly PAYE returns and remit tax to the GRA by the 15th of the month following payroll. SSNIT contributions must be remitted by the 14th of the following month. Additionally, employers must file an annual payroll reconciliation report with the GRA by 30 April of the following year, covering all salaries paid, taxes withheld, and SSNIT contributions made during the year.
Do small businesses in Ghana have to register for PAYE?
Yes. Any business in Ghana that employs at least one person is legally required to register with the Ghana Revenue Authority for PAYE, regardless of business size or sector. There is no minimum employee count or turnover threshold for PAYE registration. Informal businesses — including sole traders with staff, market traders in places like Kejetia or Madina, and home-based service providers — are equally obligated under the Income Tax Act, 2015 (Act 896).
Payroll Doesn't Have to Be a Monthly Crisis
For many small business owners in Ghana, payroll day is stressful: pulling together salary figures, calculating SSNIT and PAYE manually, generating payslips in spreadsheets, and rushing to beat the GRA's 15th deadline. One wrong formula, one missed allowance, one forgotten Tier 2 transfer — and you're exposed.
ParmLedger automates every step of this process. Enter your employees' salary details once, and the platform calculates SSNIT, Tier 2, and PAYE correctly every month — then generates ready-to-send payslips and remittance summaries so you can file with the GRA and SSNIT in minutes, not hours.
Run your first payroll the right way. Start your free trial → — no accountant required, GRA-ready from day one.
Last updated: June 2025. PAYE bands, SSNIT rates, and MIE ceiling reflect current GRA and SSNIT guidelines (verified May 2026). Always confirm current thresholds at gra.gov.gh or with a licensed Ghanaian tax professional before filing.