Ghana announces plans to provide relief to frontline health workers in response to COVID-19

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EY Global

15 Apr 2020 PDF
Subject Tax Alert
Categories Corporate Tax
Jurisdictions Ghana

In a nationwide broadcast on 5 April 2020, Ghana’s President addressed the nation on the progress made in the fight against the COVID-19 pandemic and the incentives the Government has proposed for frontline health workers as well as for the general public.

In the 5 April address, Ghana’s President announced the following incentives for the frontline health workers, namely:

  1. Exemption from the payment of tax on their employment emoluments for a three-month period commencing from April 2020.
  2. A daily allowance of GHS150 (approx. US$26) payable to those undertaking contact tracing.
  3. Additional allowance of 50% of their basic salary per month for a four-month period commencing from March 2020.
  4. Insurance package, with an assured sum of GHS350,000 (approx. US$60,345).

In addition, the President announced that, to enable everyone to wash his/her hands frequently, the Government will absorb the water bill of every resident individual for a three-month period commencing from April 2020.

Already, a challenge has been made over who is considered a frontline health worker. The President has asked the ministers responsible for health and finance to work with all the stakeholders to resolve this issue.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Advisory Services Limited, Accra
Ernst & Young Advisory Services (Pty) Ltd., Africa ITTS Leader, Johannesburg
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
Ernst & Young LLP (United States), Pan African Tax Desk, New York