Remuneration structures vary across industries and economies, with salary payments often categorized into monthly, weekly, or hourly pay.
In Ghana, the traditional monthly salary remains the dominant compensation model, particularly in formal employment. However, as the gig economy expands and businesses seek more flexible workforce solutions, the concept of hourly pay is gaining attention.
This article explores the feasibility of hourly pay in Ghana, examining its potential benefits, challenges, and applicability across different sectors. Drawing on global trends, local labour market dynamics, and expert opinions, we assess whether hourly pay can be a viable remuneration model for Ghanaian businesses and workers.
Ghana’s labor market is characterized by a mix of formal and informal employment. According to the Ghana Statistical Service (GSS, 2021), about 85% of employment is informal, with workers often receiving daily or piece-rate wages rather than structured salaries.
In the formal sector, monthly salaries are standard, governed by the Labour Act, 2003 (Act 651), which outlines minimum wage requirements and employment terms. It also stipulates how monthly remuneration should be calculated from minimum wage figures.
The National Daily Minimum Wage (currently GH¢19.97) serves as a baseline, but compliance varies, especially in small and medium enterprises (SMEs). Many workers, particularly in retail, hospitality, and casual labor, already experience variations of hourly or daily pay, though not systematically structured.
Hourly pay refers to a compensation model where employees are paid based on the number of hours worked rather than a fixed monthly salary. This system is common in countries like the United States, where part-time and gig workers often rely on hourly wages. Businesses can adjust labor costs based on demand (e.g., seasonal peaks in retail or hospitality).
And workers can choose flexible hours, benefiting students, part-timers, and gig workers. However, fluctuating hours can lead to unpredictable earnings, making financial planning difficult. Ghana’s labor laws favour salaried employment; hourly workers may face exploitation (e.g., unpaid overtime), and tracking hours accurately requires robust systems, which many SMEs lack.
Countries like the U.S., U.K., and Germany have well-established hourly wage systems, often supported by strong labor regulations. In Africa, South Africa has seen growth in hourly pay, particularly in retail and hospitality. However, Ghana’s labor market differs due to its high informality and weaker regulatory enforcement.
Ghana’s primary labor legislation, the Labour Act (Act 651), does not explicitly mandate or prohibit hourly pay. Instead, it focuses on Minimum wage, Overtime pay where workers must be paid for extra hours worked, and payment intervals where wages must be paid at least monthly, unless otherwise agreed.
The law does not prevent hourly pay but does not explicitly regulate it either leaving a lot of potential for abuse and misapplication. Employers can legally pay workers per hour, provided they meet minimum wage requirements when calculated over a standard work period.
The National Tripartite Committee of Ghana (government, employers, and labor unions) sets Ghana’s daily minimum wage, and not an hourly rate. This means that employers paying hourly must ensure that total earnings ÷ hours worked ≥ minimum wage equivalent. For example, if a worker does 8 hours/day, their hourly pay must be at least GH¢2.50/hour (GH¢19.97 ÷ 8) to comply. As mentioned earlier, there is no official hourly minimum wage, making enforcement difficult. Workers in informal sectors (e.g., domestic help, casual labourers) often earn below this threshold.
Current Practice: Is Hourly Pay Used in Ghana?
While not widespread, some sectors in Ghana use hourly pay or similar flexible models. Within the fast rising Gig Economy & Platform Work, Ride-hailing (Uber, Bolt, Yango) have drivers earning per trip, effectively working on a variable hourly rate. Riders are often paid per delivery, with some companies offering hourly guarantees. And remote workers charge hourly rates, but this is more common among skilled professionals.
In the Hospitality & Retail sector, some restaurants, hotels, and shops pay casual workers per shift (e.g., GH¢30 for 6 hours etc). However, many still prefer daily wages (e.g., GH¢50 for a full day). Daily wages are more common in the construction sector, but some subcontractors pay per task or hour (e.g., masonry work at GH¢10/hour or GH¢80/Day).
So Hourly pay exists informally but is not systematically regulated. Most businesses prefer daily or monthly wages for simplicity. There have however been attempts by international companies at formalising hourly pay in their business operations. Some multinationals (e.g., hotels, call centers) use hourly pay for part-timers. There is no formal hourly pay system in civil service. And National Service Personnel receive a monthly allowance, not hourly wages.
However, can hourly pay work in Ghana especially in the public and government sector? Ride-hailing companies like Uber and Bolt use a hybrid hourly/distance-based pay model. Drivers earn based on trips completed, effectively functioning as hourly workers. While this offers flexibility, drivers often complain about low earnings after fuel and maintenance costs (Ghana Rideshare Drivers Association, 2023).
This highlights the need for regulated minimum hourly rates in such sectors. According to Dr. William Baah-Boateng a Labour Economist at University of Ghana, “Hourly pay can work if tied to a decent living wage and enforced protections.” The Ghana Employers’ Association for example has stated that “Flexible pay structures can help SMEs manage costs but require policy support.”
Ghana’s public sector, which employs over 600,000 workers (World Bank, 2023), predominantly uses a fixed monthly salary structure. However, with rising fiscal pressures and calls for efficiency and higher productivity, with the growth of flexible work arrangements, could hourly pay be a viable alternative?
Public sector remuneration in Ghana follows a graded salary system under the Single Spine Pay Policy (SSPP), introduced in 2010 to standardize wages. It is made upon of fixed monthly salaries based on rank and qualifications, allowances (transport, housing, etc.) rather than performance-based pay and overtime pay, which is rarely tracked strictly by the hour.
The problem is that the current public pay system is rigid and makes it difficult to adjust for productivity. And ghost workers & absenteeism persist due to lack of accountability. But, pay only for hours worked will reduce waste from absenteeism. Hourly tracking of work could discourage lateness and idle time which
incentivises output-based work. Hourly based work could be used for temporary staff, interns, national service persons and consultants.
Hourly based work however requires digital time-tracking systems, which many agencies lack and could lead to disputes over logged hours. Most certainly, public sector unions may oppose hourly pay as a “reduction in worker rights,” especially with little or no consultation with the unions. Workers may fear income fluctuations, unlike fixed salaries and knowing the high risk of corruption in public pay systems, supervisors could manipulate hour logs for favouritism.
It must be noted that not all public sector roles are suitable, but some areas could test hourly pay such as for auxiliary staff (Cleaners, Security, Drivers). In healthcare, hourly paid work for Part-Time Nurses and Community Health Workers could improve rural healthcare staffing with flexible shifts.
For education, Adjunct Lecturers, National Service Personnel, Part-time teachers in under-served areas could be paid hourly. In IT & Technical Staff, Contract Programmers, Data Entry Clerks and many other tech roles already operate on project-based pay and hourly pay could be a juicy alternative.
Is Ghana Ready for Hourly Pay? Policy Recommendations
For Federal Hourly workers in the USA, some government roles such as postal services, and park staff) use hourly pay with union agreements. In the UK, Zero-Hour Contracts are used in the Public Sector in healthcare for flexible nursing staff. In Rwanda the Civil Service uses Performance-Based Pay as a standard remuneration system with some roles tracked by output per hour for efficiency.
Ghana’s proposed 24-hour economy policy, aimed at boosting productivity through round-the-clock business operations, could significantly reshape the country’s labor market.
One key question is how this policy would interact with hourly pay systems, which are still emerging in Ghana’s predominantly salaried work structures. Industries like healthcare, manufacturing, and retail would require 24/7 staffing, making hourly pay more practical than fixed salaries.
Factories operating night shifts may prefer paying workers GH¢15/hour rather than monthly salaries. Food delivery, ride-hailing, and logistics would expand, relying on flexible hourly workers.
Platforms like Bolt and Uber already use per-hour/per-task pay, which could become more standardized though more expansive piloting. Extended service hours at ports, hospitals, and transport agencies may require hourly-based contracts for auxiliary staff.
Challenges however exist in a possible implementation of Hourly Pay in a 24-Hour Economy. Ghana’s Labour Act (2003) does not explicitly regulate hourly pay, and will need to be amended to ensure that the policy is backed by legislation.
Without an hourly minimum wage, employers could underpay night workers leading to deep wage inequalities which could spark labour agitations. The National Tripartite Committee will therefore need to deliberate and announce an hourly minimum wage based on a living wage reflective of the true needs of workers within Ghanaian economic contexts.
Critical legislation on holy pay must define hourly wages, overtime, and shift differentials and technology such as biometric clocks, mobile payroll apps used as critical tools for tracking time, attendance and assigned tasks.
Recommendations are therefore proposed for extensive Legal Reforms to introduce an hourly minimum wage (e.g., GH¢5/hour). Overtime and night shift premiums must be carried in an amended Labour Act and
Social Security (SSNIT) should be extended to hourly workers. Digital time-tracking tools (e.g., e-zwich clock-in systems should be promoted in all workplaces.
Pilot programs in healthcare, logistics, and manufacturing should be pursued amidst dedicated Union and stakeholder engagement to negotiate with labour unions and ensure fair hourly pay standards. Workers on rights under an hourly system.
The 24 Hour Economy Policy grants incentives for Businesses. Tax breaks for firms adopting formal hourly payroll systems can be introduced and Grants provided for SMEs to adopt digital attendance and other relevant tools that aid the implementation, monitoring and tracking of hourly pay work systems and structures.
Hourly pay has potential in Ghana, particularly in flexible and gig-based sectors. However, its success depends on stronger labor regulations to prevent exploitation, business adoption of digital payroll systems for accurate tracking and Cultural shifts in how workers perceive non-salaried income.
If properly implemented, hourly pay could complement Ghana’s evolving labor market, offering both employers and workers greater flexibility. However, without safeguards, it risks deepening income insecurity. Policymakers, businesses, and worker unions must collaborate to ensure hourly pay benefits all stakeholders.
