If your September payroll was prepared with the same PAYE table you used in August, some of your employees may have paid more tax than the law now requires.
The Income Tax (Amendment) Act, 2026 (Act 1178) was assented to on 26 August 2026 and revised the tax bands for resident individuals. The Ghana Revenue Authority has since confirmed in a public communique that the revised PAYE schedule took effect from 1 September 2026.
Because that confirmation came late in the month, many payrolls were already prepared or approved. This is the practical question for HR and finance teams right now: was September calculated on the right table?
What changed
The tax-free band rose from GHS 490 to GHS 588 a month (from GHS 5,880 to GHS 7,056 a year). The new figure broadly reflects the monthly equivalent of the 2026 national daily minimum wage of GHS 21.77 over a 27-day working month.
The bands above it were also adjusted. The top rate of 35% still applies above GHS 50,000 a month.
New monthly PAYE table for resident employees (from 1 September 2026)
| Chargeable income (monthly) | Rate |
|---|---|
| First GHS 588 | 0% |
| Next GHS 80 | 5% |
| Next GHS 100 | 10% |
| Next GHS 2,900 | 17.5% |
| Next GHS 16,000 | 25% |
| Next GHS 30,332 | 30% |
| Exceeding GHS 50,000 | 35% |
The annual equivalent
| Chargeable income (annual) | Rate |
|---|---|
| First GHS 7,056 | 0% |
| Next GHS 960 | 5% |
| Next GHS 1,200 | 10% |
| Next GHS 34,800 | 17.5% |
| Next GHS 192,000 | 25% |
| Next GHS 363,984 | 30% |
| Exceeding GHS 600,000 | 35% |
What did not change
Advisory notes on the amendment report that the following remain as they were:
- The 25% rate for non-resident individuals
- The special treatment of qualifying employee bonuses
- The overtime tax rules for junior employees
- The 5% withholding tax for casual workers
- SSNIT contribution rates: 13% from the employer and 5.5% from the employee
Worked examples
These examples assume a resident employee whose only deduction before tax is the 5.5% employee SSNIT contribution. Your own payroll may include allowances, reliefs, or benefits that change the result.
Example 1: GHS 1,000 gross monthly salary
- SSNIT (5.5%): GHS 55.00
- Chargeable income: GHS 945.00
| Old table | New table | |
|---|---|---|
| 0% band | GHS 490 → GHS 0 | GHS 588 → GHS 0 |
| 5% band | GHS 110 → GHS 5.50 | GHS 80 → GHS 4.00 |
| 10% band | GHS 130 → GHS 13.00 | GHS 100 → GHS 10.00 |
| 17.5% band | GHS 215 → GHS 37.63 | GHS 177 → GHS 30.98 |
| PAYE | GHS 56.13 | GHS 44.98 |
The employee keeps about GHS 11.15 more each month.
Example 2: GHS 600 gross monthly salary
- SSNIT (5.5%): GHS 33.00
- Chargeable income: GHS 567.00
Under the old table, GHS 77 sat above the GHS 490 tax-free band and attracted GHS 3.85 in tax. Under the new table, the full GHS 567 falls within the GHS 588 tax-free band. PAYE is now zero.
This is the group the change was designed for: workers earning close to the minimum wage.
A note on higher salaries
For employees whose chargeable income stays within the 17.5% band, the monthly reduction works out at about GHS 11.15. Upper band boundaries also moved, so do not assume the same saving for senior salaries. Run each salary through the full new table.
What HR and finance should do now
1. Confirm which table September used
Check your payroll software, spreadsheet formula, or payroll provider. If the September run used the GHS 490 table, the employees affected were over-deducted.
2. Agree how to correct September
Speak to your tax adviser or GRA office before deciding how to treat September. The options include an adjustment in the October run or a correction to the September return. Record the decision and the reason for it.
3. Update the table before October's run
Every payroll tool, spreadsheet template, and manual calculator needs the new bands. Spreadsheet templates are easy to miss, especially when one person built them years ago and another person now uses them.
4. Remit on time
PAYE deducted for September is due to GRA by 15 October 2026. SSNIT contributions for September are due by 14 October 2026.
5. Tell employees what changed
A short note explaining why net pay changed prevents a queue of questions at HR's desk. Where September is being corrected, say when the correction will appear.
Payroll is only as accurate as the records behind it
A tax table change is a reminder that payroll depends on clean inputs: the correct employee list, current salaries, start and exit dates, and approved leave. When those details live across WhatsApp messages and several spreadsheets, every change becomes a manual reconciliation. We covered this in why employee records should not live in WhatsApp and spreadsheets.
VeloxaHR keeps employee records, key dates, and leave decisions in one place, so HR starts each pay period with information it can trust. If your team is still reconciling people data by hand before every payroll, request a VeloxaHR demo.
This article is general information, not tax advice. Confirm your organisation's position with a qualified tax adviser or the Ghana Revenue Authority.