Ghana Overtime Pay Calculator
Compute statutory overtime compensation in Ghana: 1.5x weekday overtime, 2.0x weekend & public holiday double time, and official GRA 5% / 10% concessionary tax withholding.
Total Gross Overtime: GH₵ 0.00
Wage & Overtime Hours
Excludes non-basic cash allowances pursuant to Act 651 § 35.
Overtime Compensation Breakdown
GRA Concessionary Tax Rule
Under Ghanaian tax law, qualifying employees who earn overtime pay get taxed at 5% on the first 50% of basic monthly pay and 10% on the excess, providing significant tax relief compared to standard PAYE progressive brackets (up to 35%).
Ghana Overtime Hourly Multipliers & Tax Treatment
Comparative statutory wage rates and GRA tax tiers across common salary levels.
| Monthly Basic (GH₵) | Hourly Base Rate | 1.5x Weekday Rate | 2.0x Holiday Rate | 5% Tax Threshold (50% Basic) | Overtime Tax Tiers |
|---|---|---|---|---|---|
| GH₵ 2,000.00 | GH₵ 11.54 / hr | GH₵ 17.31 / hr | GH₵ 23.08 / hr | Up to GH₵ 1,000 | 5% to GH₵1k • 10% on excess |
| GH₵ 3,500.00 | GH₵ 20.19 / hr | GH₵ 30.29 / hr | GH₵ 40.39 / hr | Up to GH₵ 1,750 | 5% to GH₵1.75k • 10% on excess |
| GH₵ 5,000.00 | GH₵ 28.85 / hr | GH₵ 43.27 / hr | GH₵ 57.69 / hr | Up to GH₵ 2,500 | 5% to GH₵2.5k • 10% on excess |
| GH₵ 8,000.00 | GH₵ 46.15 / hr | GH₵ 69.23 / hr | GH₵ 92.31 / hr | Up to GH₵ 4,000 | 5% to GH₵4k • 10% on excess |
Ghana Overtime Compensation Legal Rules
Overtime pay in Ghana is governed jointly by the Labour Act, 2003 (Act 651) and the Income Tax Regulations (L.I. 2244):
1. The 40-Hour Cap
Under Section 33 of Act 651, work exceeding 8 hours per day or 40 hours per week must be remunerated overtime.
2. Double Time Rules
Work done on declared rest days (Saturdays/Sundays) or statutory public holidays commands 2.0x (double) regular hourly rate.
3. Concessionary Tax
Junior employees enjoy a 5% tax rate on overtime pay up to 50% of basic salary, with any balance taxed at only 10%.
Frequently Asked Questions (FAQ)
What are the standard working hours before overtime applies in Ghana?
Under Section 33 of the Labour Act 2003 (Act 651), the maximum standard hours of work for an employee are eight (8) hours a day or forty (40) hours a week. Any work performed in excess of these hours is legally classified.
What are the legal overtime payment rates in Ghana?
In accordance with Ghanaian collective bargaining practice and Labour Act standards, ordinary weekday overtime is paid at time-and-a-half (1.5x basic hourly wage), while overtime worked on weekends (rest days) or official public holidays is paid at double time (2.0x basic hourly wage).
How does the GRA concessionary overtime tax work in Ghana?
Under Income Tax Regulations (L.I. 2244 Regulation 6), qualifying junior or non-management employees enjoy concessionary tax on overtime: overtime pay up to 50% of the employee's monthly basic salary is taxed at a flat 5%, while any excess overtime pay above 50% is taxed at 10%.
How is the basic hourly rate calculated for overtime in Ghana?
For a standard 40-hour work week, the monthly working hours divisor is 173.33 hours (calculated hours × 52 weeks ÷ 12 months). The hourly rate is determined by dividing monthly basic salary by 173.33.
Can an employer compel an employee to work overtime in Ghana?
Under Section 35 of Act 651, overtime is generally voluntary unless the company is engaged in continuous processes, emergency maintenance, or public safety operations where urgent work is required to prevent serious disruption to plant operations.
Engr. Muhammad Shahzad
Verified Compliance AuthorPrincipal Civil & Systems Software Engineer specializing in West African labor law frameworks, GRA payroll taxation algorithms, and Act 651 statutory compliance architecture.
📊 Ghana Revenue Authority (GRA) & SSNIT 3-Tier Pension Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (GHS) |
|---|---|
| Primary Net / Statutory Payable Amount | GH₵ 0.00 |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & West African Economic Community & Ghana Fiscal Law Lead
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.