Ghana Monthly Minimum Wage Calculation from Daily Rate

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Ghana Minimum Wage Converter (Daily to Monthly)

GH₵
Current 2024 NDMW is approx GH₵18.15
Standard assumption for daily-to-monthly conversion is often 27 days.
Gross Monthly Wage: GH₵ 0.00
SSNIT (Tier 1 – 5.5%): – GH₵ 0.00
Est. Taxable Income: GH₵ 0.00
Est. Monthly Net Pay*: GH₵ 0.00

*Net Pay estimate assumes minimum wage falls within the tax-free threshold (first GH₵ 490.00). Income tax (PAYE) is likely 0.00 for standard minimum wage earners.

Understanding Ghana's National Daily Minimum Wage (NDMW)

The National Daily Minimum Wage (NDMW) in Ghana is determined by the National Tripartite Committee (NTC), which consists of representatives from the government, employers (Ghana Employers' Association), and organized labor (Trades Union Congress). This rate sets the legal floor for the lowest amount a daily-rated worker can be paid.

How to Convert Daily Wage to Monthly Salary

In Ghana, converting a daily wage to a monthly salary is not always a straightforward multiplication by 30 or 31 days. According to standard payroll practices and interpretations of the Labour Act (Act 651), the standard multiplier often used is 27 working days.

This 27-day rule ensures that daily-rated workers receive a fair monthly equivalent that accounts for the typical working month, excluding some rest days but normalizing pay across months of varying lengths.

Statutory Deductions (SSNIT)

Even minimum wage earners contribute to national social security. The calculations above include the mandatory SSNIT Tier 1 deduction:

  • SSNIT (Employee Share): 5.5% of the Basic Salary.
  • Income Tax (PAYE): Based on the GRA graduated tax rates. As of 2024, the first GH₵ 490.00 of monthly income is tax-free. Since the standard minimum wage (approx GH₵ 18.15 x 27 = GH₵ 490.05) hovers near this threshold, income tax is minimal or zero for minimum wage earners.

Why This Matters

Employers are legally prohibited from paying below the NDMW. Understanding the conversion from daily to monthly rates helps both employees and employers ensure compliance with the labour laws of Ghana and guarantees that workers receive their rightful statutory take-home pay.

function calculateGhanaWage() { // 1. Get Input Values var dailyRateInput = document.getElementById('ghDailyRate'); var workingDaysInput = document.getElementById('ghWorkingDays'); var dailyRate = parseFloat(dailyRateInput.value); var workingDays = parseFloat(workingDaysInput.value); // 2. Validation if (isNaN(dailyRate) || dailyRate < 0) { alert("Please enter a valid Daily Wage amount."); return; } if (isNaN(workingDays) || workingDays 31) { alert("Please enter a valid number of working days (1-31)."); return; } // 3. Core Calculations // Gross Monthly Wage = Daily Rate * Days var grossMonthly = dailyRate * workingDays; // SSNIT Tier 1 Deduction (5.5% of Gross) var ssnitDeduction = grossMonthly * 0.055; // Taxable Income var taxableIncome = grossMonthly – ssnitDeduction; // Income Tax Estimate (Simplified 2024 GRA Table logic) // First 490 is Free. // Note: This is an estimate focused on Min Wage context. var tax = 0; var chargeable = taxableIncome; // Very basic progressive tax logic for low income estimation // First 490 @ 0% if (chargeable > 490) { var remainder = chargeable – 490; // Next 110 @ 5% if (remainder <= 110) { tax += remainder * 0.05; } else { tax += 110 * 0.05; // 5.50 remainder -= 110; // For minimum wage calc, we rarely go higher, but let's stop here for simplicity // as the prompt focuses on Minimum Wage conversion. // Assuming minimal overflow for min wage context. tax += remainder * 0.10; // Assume next band 10% } } // Net Pay var netPay = taxableIncome – tax; // 4. Update UI // Helper function for currency formatting function formatCedi(num) { return "GH₵ " + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,'); } document.getElementById('ghGrossWage').innerHTML = formatCedi(grossMonthly); document.getElementById('ghSsnit').innerHTML = "- " + formatCedi(ssnitDeduction); document.getElementById('ghTaxable').innerHTML = formatCedi(taxableIncome); document.getElementById('ghNetPay').innerHTML = formatCedi(netPay); // Show results document.getElementById('ghResultDisplay').style.display = 'block'; }

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