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.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| PAYE (Pay-As-You-Earn) | 7% - 24% (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 300,000 | 7% |
| Next NGN 300,000 | 11% |
| Next NGN 500,000 | 15% |
| Above NGN 3,200,000 | 24%, |
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
- Consolidated Relief Allowance (CRA): Higher of NGN 200,000 per annum or 1% of annual gross income, plus 20% of the gross income per annum.,
- Life insurance premiums paid for self or spouse.,
- Contributions to an approved pension fund, National Health Insurance Scheme, and National Housing Fund.,
