Country Payroll Guide Nigeria

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Key Facts

Capital
Abuja
Date format
dd/mm/yyyy
Currency
Nigerian Naira (NGN)
VAT
the standard rate is 7.5%

Contributions

Employers

Pension
Pension - 10%
National Provident Fund
National Provident Fund - 1%
Total Employment Cost
Total Employment Cost - 11%

Employees

Pension
Pension - 8%
Housing Fund
Housing Fund - 2.5%
Total Employee Cost
Total Employee Cost - 10.5%

Minimum Wage

Minimum Wage
The minimum wage in Nigeria is 30000 NGN per month.

Payroll

Payroll Cycle
Weekly, Monthly, Bi-Monthly
13th Salary

There is no statutory requirement for a 13th salary.

Income Tax

Employee Income Tax (1)
First 300,000 NGN - 7%
Employee Income Tax (2)
Next 300,000 NGN - 11%
Employee Income Tax (3)
Next 500,000 NGN - 15%
Employee Income Tax (4)
Next 500,000 NGN - 19%
Employee Income Tax (5)
Next 1.6 million NGN - 21%
Employee Income Tax (6)
Over 3.2 million NGN - 24%

Working Hours

General Working Hours

40 hours per week.

Overtime

No government mandate on how much extra employer needs to pay, but overtime terms should be a pre-agreement in the employment contract.

Leave

Paid Time Off

Employees get 6 days at full pay.

Public Holidays

13 public holidays

Sick Days

Employees are paid for 12 sick days a year.

Maternity Leave

Mothers receive 12 weeks of maternity leave (six weeks before birth and six weeks after), paid at a rate of 50% regular salary, for mothers who have worked at least six months with the company.

Paternity Leave

There is no national paternity leave.

Parental Leave

There is no national parental leave.

Termination

Termination Process

Employment can be terminated at any time by either the employer or the employee, as long as proper notice is given.

Notice Period

Notice varies depending on the length of service.

  • One day is required for 3 months of less service.
  • One week for 3 months to 2 years.
  • Two weeks for 2 -5 years.
  • One month for 5 or more years.
Severance Pay

There is no law requiring severance pay but it is usually part of an agreement between the employer and employee.

Probation Period

There is no formal probation period.

Visa

Employment Visa

The STR (Subject to Regularization) is required by foreigners seeking to take up employment in Nigeria.