Cloud-based, always current
Every statutory deduction, salary calculation and regulatory update — including the Nigeria Tax Act 2025 — automated and kept current.
Popay Payroll · Nigeria PopayPayroll
Payroll Software for Nigeria, built for scale.
PAYE across 36 states, pension remittances to PFAs, NSITF, NHIA and ITF — automated to Nigerian law, not bolted on.
Nigeria payroll specialists. The people who run your payroll know Nigerian law from the inside — PAYE, PFA pensions, NSITF, NHIA and the Labour Act, and the Nigeria Tax Act 2025, no shortcuts.
Talk to our African payroll team No commitment — a working conversation about your team in Nigeria.
NG
NG · West Africa — PAYE, pension, NSITF & NHIA live in Nigeria today
Calculate your Nigeria payroll
See real Nigeria net pay in seconds — computed with the same engine that runs payroll across Africa.
Our legislation team is updating the figures — the live simulator for this country will publish soon.Understand HR in Nigeria
Everything Nigeria payroll asks of an employer — in one place.
The full local picture for Nigeria: statutory contributions and the rules our engine runs natively — maintained by our Pan-African legislation team.
01 · At a glance
Nigeria payroll, by the numbers
The fixed parameters every Nigeria payroll run starts from.
Capital
Abuja
Local Currency
Nigerian Naira (NGN / ₦)
Official Languages
English (Hausa, Yoruba, and Igbo widely spoken)
Pay Frequency
Monthly (most common)
Employer Contributions
Pension 10%, NSITF 1%, ITF 1%, NHIS 10% (rates vary; some apply above certain thresholds)
Standard VAT
7.5% (lowest among major African economies)
Minimum Wage
₦70,000 / month (signed into law July 29, 2024 — +133%)
GDP Growth
+3.9% (2025) (second time in a decade exceeding 4%, excl. post-pandemic rebound)
Contract Termination
1 day to 1 month notice (depends on length of service)
Employee Protection
Moderate (Labour Act 2004 + strong union influence: NLC, TUC)
02 · Taxation, social contributions & retirement
Mandatory contributions in Nigeria
Employers register and remit with several bodies — the PFA for pensions, NSITF, NHIA, ITF and the optional NHF — each with its own base, rate and deadline.
| Scheme | Employer | Employee | Basis & notes |
|---|---|---|---|
| Pension (PenCom) | 10% | 8% | No ceiling |
| NHF — National Housing Fund | 0% | 2.5% | No ceiling |
| ECF — Employee Compensation | 1% | 0% | No ceiling |
| PAYE — Personal income tax | Withheld at source | Progressive (graduated bands) | — |
Pension to a PFA; NHF and PAYE filed monthly.
03 · PAYE tax bands
PAYE tax bands under the Nigeria Tax Act 2025
The Nigeria Tax Act 2025 (in force since January 2026) rewrote the schedule: an ₦800,000 tax-free threshold, six progressive bands up to 25%, the removal of the CRA and a new rent relief.
| Annual taxable income (NGN) | Tax rate | ||
|---|---|---|---|
| Up to ₦800,000 | 0% (tax-free) | ||
| ₦800,001 – ₦3,000,000 | 15% | ||
| ₦3,000,001 – ₦10,000,000 | 18% | ||
| ₦10,000,001 – ₦25,000,000 | 21% | ||
| ₦25,000,001 – ₦50,000,000 | 23% | ||
| Above ₦50,000,000 | 25% |
Pension, NHF and NHIA contributions are deducted before PAYE is calculated. The Consolidated Relief Allowance (CRA) is abolished; a new Rent Relief allows 20% of annual rent paid, capped at ₦500,000.
04 · Employment contracts
Contracts and notice under the Labour Act
A written contract must be provided within three months of hiring, notice periods increase with length of service, and the mandatory clauses drive the payslip and PAYE.
Employment contract rules
05 · Leave & employee rights
Leave entitlements set by the Labour Act
The Labour Act sets statutory minimums for annual, maternity and sick leave; many employers offer more through contracts or collective agreements.
Annual Paid Leave
Maternity Leave
Sick Leave
Paternity Leave
Nursing Allowance
Contract Protection
06 · Unions & collective agreements
The union and the agreement that apply to your sector
Sector unions negotiate the wages, allowances and bonuses your payroll must apply correctly — the wrong agreement means a case before the National Industrial Court.
NLC & TUC (national umbrella)
National umbrella organizations covering federal, state and private sectors. They lead minimum-wage negotiations, policy advocacy and strike coordination — and negotiated the ₦70,000 minimum wage in 2024.
Banking & financial services
NUBIFIE represents junior and non-management staff, ASSBIFI senior staff, across banks, insurance and financial institutions. They set sector-specific wage scales and performance bonuses.
Oil & gas
PENGASSAN and NUPENG cover upstream, downstream and services. The highest-paying sector, with enhanced wages, hazard allowances and housing, and strong bargaining power.
Manufacturing, food, aviation & transport
NUFBTE in food, beverages and tobacco; NUATE and NURTW in air and road transport. They negotiate overtime premiums, shift allowances and sector-specific safety and wage provisions.
Legal framework
Governed by the Trade Unions Act and Trade Disputes Act, with the National Industrial Court (NICN) holding exclusive jurisdiction. The right to strike is protected subject to procedure, and employers must allow union membership.
07 · Payslip, filings & penalties
What a compliant Nigerian payslip contains — and when to file
Every payslip must show the position, salary, overtime, mandatory deductions and net pay, with PAYE, pension and NSITF filed on their own deadlines and records kept for six years.
Gross remunerationLabour Act 2004
- Basic salaryContractual rate; ≥ ₦70,000/month national minimum wage
- Housing allowancePart of pensionable emoluments
- Transport allowancePart of pensionable emoluments
- Other allowancesHazard, shift, overtime — per contract or collective agreement
Employee deductionsPAYE & statutory schemes
- PAYE withheld at sourceProgressive 0–25% on annual taxable income (Nigeria Tax Act 2025)
- Pension contribution (CPS)8% of monthly emoluments
- NHIA (health insurance)5% of basic salary
- NHF (National Housing Fund)2.5% of basic salary — voluntary for the private sector since Feb 2023
Employer contributions (shown for reference)Statutory bodies
- Pension (CPS)10% of monthly emoluments to the PFA
- NHIA (health insurance)10% of basic salary
- NSITF (Employees' Compensation)1% of total monthly payroll
- ITF (Industrial Training Fund)1% of annual payroll (5+ staff or ₦50M+ turnover)
Filing, deadlines & penaltiesSIRS / PFA / NRS
- PAYE remittanceTo the State Internal Revenue Service (SIRS) by the 10th of the following month
- Pension remittanceTo the PFA within 7 working days
- NSITF filingAnnual filing due 28 February
- Late PAYE penalty₦100,000 for the first month, ₦50,000 for each subsequent month; late remittance adds 10% p.a. plus CBN-rate interest
- Record keepingPayroll records maintained for at least 6 years
Native Nigeria payroll — and one accountable partner.
We own the gross-to-net engine
Nigeria rules are configured natively inside our engine, not stitched from third-party aggregators — one accountable system, one contract.
Local & dedicated support
Present in Morocco and 40+ countries, our team maps every sectoral and statutory rule to your payroll configuration.
Meet Jacob Louis, your Popay expert for Nigeria.
In HR, human connection matters — and it starts from the first exchange. Tell us about your team in Nigeria and we'll map your options, plainly and without commitment.
Popay helped us simplify payroll across Nigeria — PAYE, pension remittances, NSITF and NHIA in one place. Reliable, efficient, and always current with local law.
Nigeria payroll, answered
Does Popay handle PAYE and pension remittances in Nigeria?
Yes. We compute PAYE and remit it to the relevant State Internal Revenue Service (SIRS) by the 10th of the following month, and pension contributions go to the PFA within 7 working days — with NSITF, NHIA and ITF filed on their own deadlines, automatically.
Is Popay updated for the Nigeria Tax Act 2025?
Yes. The new bands are configured inside our engine — a ₦800,000 tax-free threshold, progressive rates up to 25%, the abolished Consolidated Relief Allowance (CRA) and the new Rent Relief (20% of annual rent, capped at ₦500,000). Every payslip stays compliant from January 2026.
Which statutory contributions does Popay manage?
Pension (CPS) at 8% employee / 10% employer, NSITF at 1%, NHIA at 5% / 10%, ITF at 1% for employers with 5+ staff or ₦50M+ turnover, and the voluntary NHF at 2.5%. Each is calculated on its correct base and remitted on schedule.
Can Popay produce a fully compliant Nigerian payslip?
Yes. Payslips carry every mention required by the Labour Act — position, salary, overtime, statutory deductions, allowances and net pay — and payroll records are maintained for at least 6 years with digital archiving.
Does Popay reflect the ₦70,000 minimum wage?
Yes. The national minimum wage of ₦70,000/month — effective 1 May 2024, a 133% increase, applying to establishments with 25+ employees — is built into your configuration so no payslip is generated below the legal floor.
Do you handle collective agreements and unions?
Yes. Nigeria has a strong union tradition led by the NLC and TUC, with sectoral unions such as NUBIFIE, ASSBIFI, PENGASSAN and NUPENG. We map each sector's wages, allowances and premiums to your payroll — getting a collective agreement wrong can mean a case before the National Industrial Court.
Review your HR needs in Nigeria — in 30 minutes.
Questions about payroll, local compliance or digitising your processes? Take a no-commitment slot with Jacob Louis, our dedicated Nigeria expert. Plain, specific, useful.
Popay payroll across Africa
Explore payroll & HR in nearby markets — or see every country we cover.
