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Last updated: August 5, 2026
Employment Cost Calculator for Nigeria
Calculate your complete hiring costs for Nigeria employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Calculate Employment Costs
Employment Cost Breakdown
Select a country and enter a salary to see the employment cost breakdown
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| PAYE (Pay-As-You-Earn) | 0% - 25% (progressive) | Taxable income of employees |
| Pension | Employer: 10%, Employee: 8% (Total 18%) | Employee's monthly emoluments (basic salary, housing, transport allowances) |
| ITF (Industrial Training Fund) | 1% | Total annual payroll (for employers with 5+ employees or annual turnover over ₦50 million) |
| NSITF (Nigeria Social Insurance Trust Fund) | 1% | Employees' monthly payroll |
Filing & Compliance
- PAYE remittances are due by the 10th day of the following month. Employers must file annual PAYE returns by January 31 for the preceding year.
- Pension contributions are due within seven working days after salary payment.
- ITF annual returns are due by April 1.
Income Tax Brackets
| Income Range | Tax Rate |
|---|---|
| First NGN 800,000 | 0% |
| Next NGN 2,200,000 | 15% |
| Next NGN 9,000,000 | 18% |
| Next NGN 13,000,000 | 21% |
| Next NGN 25,000,000 | 23% |
| Above NGN 50,000,000 | 25% |
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Pension Fund | 8% of basic salary, housing, and transport allowance (employee) | N/A |
| National Housing Fund (NHF) | 2.5% of basic salary | Applicable to employees earning a minimum of NGN 30,000 per annum |
| National Health Insurance Scheme (NHIS) | 5% of basic salary (employee) | For employers with 10 or more employees |
Personal Allowances
- Rent Relief Allowance: 20% of the annual rent paid, capped at NGN 500,000 per annum.
- Life insurance premiums paid for self or spouse.
- Contributions to an approved pension fund, National Health Insurance Scheme, and National Housing Fund.
Written by
Lucas Botzen
Lucas Botzen is the Founder of Rivermate, a global employment platform that helps companies hire, employ, and manage talent internationally. Since founding Rivermate in December 2020, he has focused on building practical solutions that simplify international payroll, benefits, taxes, contracts, and employment compliance for remote teams. Before Rivermate, Lucas co-founded and co-directed Boloo, an e-learning and software company that helped entrepreneurs start and grow e-commerce businesses. He scaled Boloo to more than €2 million in annual revenue before successfully exiting the business in 2020. Lucas holds a Bachelor’s degree in Business Innovation from Avans University of Applied Sciences. His background in entrepreneurship, technology, automation, and remote work continues to shape his approach to making global employment simpler and more human.
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