Nigerian law mandates several key benefits that employers must provide their employees. These benefits are designed to ensure worker well-being, financial security, and time off.

Minimum Wage and Working Hours

Nigeria has a national minimum wage, which is reviewed periodically by the National Minimum Wage Commission. Employers are legally required to pay their workers at least the minimum wage. The standard workweek in Nigeria is 48 hours, spread over eight hours per day from Monday to Friday.

Leave Entitlements

Nigerian employees are entitled to various types of paid leave:

• Annual Leave: Employees who have worked for a company for at least 12 months are entitled to a minimum of six days of paid annual leave.
• Sick Leave: Employees are entitled to a minimum of 12 days of paid sick leave per year, although employers may require a doctor's note as verification.
• Public Holidays: There are 11 national public holidays in Nigeria, and employees are entitled to paid time off on these days.

Maternity and Paternity Leave

The National Health Insurance Scheme Act (NHISA) mandates maternity leave for female employees. They are entitled to a minimum of 12 weeks of leave, with at least 50% of their regular salary being paid.

There is currently no federal legislation requiring paternity leave. However, some states, like Lagos and Enugu, have enacted laws providing new fathers with two and three weeks of leave, respectively.

Pension Contributions

The Pension Reform Act 2004 established a mandatory contributory pension scheme for both employers and employees. Employers are required to contribute a specific percentage of their employees' salaries towards their pension.

Beyond the mandatory benefits mandated by law, Nigerian employers offer a range of additional benefits to attract and retain talent. Here's a breakdown of some commonly offered optional benefits:

Health and Wellness Benefits

While basic health insurance is mandatory, companies may provide more comprehensive plans that cover a wider range of medical expenses, including dental, vision, and critical illness coverage.

Additionally, some employers may offer wellness programs that promote healthy habits and employee well-being. These programs can include gym memberships, fitness challenges, and on-site health screenings.

Financial Security and Compensation

While minimum wage and pension contributions are mandatory, some employers offer additional financial perks to their employees:

• Bonuses: These can be based on performance, reaching company goals, or simply as a 13th-month salary.
• Allowances: These can help with commuting costs (transportation allowances) or rent (housing allowances).
• Stock options: Granting employees ownership stake in the company can incentivize them and make them feel more invested in its success.

Work-Life Balance and Flexibility

In today's work environment, work-life balance is increasingly important. To cater to this need, employers may offer flexible work arrangements such as:

• Remote work options: This allows employees to work from a location outside the traditional office setting.
• Flexible working hours: This gives employees more control over their work schedule.
• Compressed workweeks: This allows employees to complete their workweek in fewer days, typically by working longer hours each day.

Time Off and Leave Options

While statutory leave provides some time off, some companies offer additional paid leave options:

• Extended parental leave: This goes beyond the minimum mandated maternity leave.
• Additional vacation days: This allows employees more time for personal pursuits.

Other Attractive Perks

Some employers may provide other benefits to stand out from the competition. These could include:

• Employee discounts: Offering discounts on company products or services can be a valuable perk for employees.
• Educational assistance: Companies may help employees pursue further education by providing tuition reimbursement or scholarships.
• On-site amenities: This could encompass anything from meals or snacks provided on-site to recreational facilities or relaxation areas.

The specific optional benefits offered by an employer will vary depending on the company size, industry, and overall benefit package.

Nigeria's health insurance landscape recently underwent significant changes with the implementation of the National Health Insurance Scheme Act (NHIA) in 2022. This legislation mandates health insurance for a large portion of the population, including employees.

Who is Required to Provide Health Insurance?

The NHIA applies to all employers of labor with at least five staff members, regardless of the sector (public or private). This includes formal and informal sectors.

Who is Eligible for Health Insurance?

The NHIA mandates that the following individuals be covered under the health insurance plan:

• The employee themself
• Their spouse (legal or customary)
• Up to four biological children under the age of 18

What are the Employer and Employee Contribution Rates?

The contribution rates for health insurance are split between employers and employees:

• Employers: Required to contribute 10% of the employee's monthly salary.
• Employees: Required to contribute 5% of their monthly salary.

There's also an option for employers to cover the employee contribution entirely or offer additional contributions for more comprehensive benefits.

What Type of Coverage is Required?

The NHIA establishes a minimum basic package of health services that must be covered by the insurance plan. The specific details of this package are still being developed, but it's expected to cover a range of essential medical services.

In Nigeria, retirement planning for employees is a crucial aspect of financial security. The country has a well-structured system in place to ensure that employees have a secure future after retirement.

Contributory Pension Scheme (CPS)

The Contributory Pension Scheme (CPS) was established by the Pension Reform Act 2004. It is a mandatory retirement savings plan for most Nigerian employees.

• Eligibility: The CPS covers all public sector employees (except diplomats) and private sector employers with at least three employees.
• Enrollment: Employers are responsible for registering their employees with a Pension Fund Administrator (PFA) and opening Retirement Savings Accounts (RSAs) for them.
• Contributions: Both employers and employees contribute a minimum of a combined 18% of the employee's monthly salary towards the RSA. Employers contribute a minimum of 10%, with the option to cover the entire 18% contribution. Employees contribute a minimum of 8%. Voluntary contributions by both employers and employees are also allowed.
• Benefits: Upon retirement, employees have a choice of how to access their retirement benefits. They can opt for a programmed withdrawal, receiving the benefit as a monthly or lump sum payment, or an annuity, receiving a guaranteed income stream for life. A combination of both options is also available.

Voluntary Retirement Savings Plans

In addition to the mandatory CPS, employees can also explore voluntary retirement savings options to further bolster their retirement nest egg.

• Personal investment accounts: Individuals can invest in stocks, bonds, or mutual funds through brokerage firms for long-term growth.
• Real estate investment: Purchasing property for rental income or future sale can provide retirement security.