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.
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NG · West Africa — PAYE, pension, NSITF & NHIA live in Nigeria today
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)
STATUTORY AUTHORITIES
State Internal Revenue Service (SIRS) of the state of residence — administers PAYE · FIRS — Federal Inland Revenue Service (non-resident and federal matters) · PenCom — National Pension Commission · NHIA — National Health Insurance Authority (NHIS scheme) · ITF — Industrial Training Fund · NSITF — Nigeria Social Insurance Trust Fund
INCOME TAX YEAR
1 January - 31 December (Calendar Year)
PAYROLL CYCLE
Monthly
Monthly Statutory Deadline
PAYE – by the 10th of the following month; Pension – within 7 working days; Annual PAYE (Form H1) & employee schedule (Form G) – by 31 January; NSITF – by 28 February.
Minimum wage
₦70,000 / month (signed into law July 29, 2024 — +133%)
Ordinary Working Week
8 hours/day or 48 hours/week — normal hours are fixed by mutual agreement, collective bargaining, or (failing that) an industrial wages board
OVERTIME
No fixed statutory premium; overtime rates are set by company policy. Public holiday work is paid at double rate.
NOTICE PERIOD
1 day to 1 month notice (depends on length of service)
Retirement age
The general public-service rule is 60 years or 35 years of pensionable service, whichever comes first (Public Service Rules 2008); 65 applies only to specific categories
Main Labour Law
The Labour Act 2004
02 · Statutory obligations & contributions
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.
| Contribution | Employer | Employee | Basis & notes |
|---|---|---|---|
| Pension (CPS) | 10% | 8% | Of basic salary + housing + transport. |
| NHF — National Housing Fund | 0% | 2.5% | Of basic salary. Voluntary for private sector since February 2023. |
| NSITF (Employee Compensation) | 1% | 0% | Of monthly payroll. |
| NHIS (Health Insurance) | 10% | 5% | Of basic salary. Mandatory for companies with 10+ employees. |
| ITF (Industrial Training Fund) | 1% | 0% | Of annual payroll. Mandatory for 25+ employees or ₦50M+ turnover. |
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 (₦)
- 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%
PAYE Calculation
- Start with gross annual income
- basic salary + housing/transport/other allowances + travel, meal, uniform and duty tour allowances + overtime + benefits in kind (e.g., company car, non-HMO medical) + monetised leave
- Subtract allowable deductions
- Pension contribution, NHF, NHIS — only where the employee funds it themselves, Life assurance premiums, Mortgage interest on owner-occupied housing, Rent Relief: 20% of annual rent paid, capped at ₦500,000
- Tax Bands
- Apply the progressive tax bands to taxable income
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.
Contract Types
Permanent (default, open-ended) / Fixed-term (must be written). Written contract required within 3 months of hire.
Notice Period
Up to 3 months- 1 day's notice, up to 2 years- 1 week's notice, up to 5 years- 2 weeks' notice, 5+ years- 1 month's notice
Mandatory Clauses
Job description, compensation, working hours, leave entitlements, termination procedures, wage payment terms
Summary Dismissal
Permitted for grave misconduct: violence, theft, fraud, bribery, gross insubordination, serious negligence, or abandonment of duty. Wrongful dismissal may result in damages.
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
Minimum 6 working days/year after 12 months of continuous service
Sick Leave
Up to 12 working days/year. Requires medical certificate. Full pay.
Maternity Leave
12 weeks (6 before + 6 after). Pay: at least 50% of wages. Eligibility: 6+ months of service
Paternity Leave
No statutory provision yet — contractual or policy basis
Nursing Leave
30 minutes twice daily during working hours
Contract Protection
No dismissal during maternity absence. Sick leave suspends contract. Employee must be reinstated upon return.
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.
Aviation & Transport
NUATE, NURTW- Air and road transport. Sector-specific safety and wage provisions. (Regulated strike procedures)
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.
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. Popay calculates PAYE and pension contributions in line with applicable Nigerian requirements and supports the processing of statutory obligations within the relevant deadlines. NSITF, NHIA and ITF contributions are also calculated and managed according to their respective statutory requirements and deadlines.
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?
Popay calculates the applicable statutory contributions, including Pension (CPS) at 8% employee / 10% employer, NSITF at 1% employer, NHIS at 5% employee / 10% employer, and ITF at 1% employer for employers meeting the applicable threshold. The NHF is voluntary for private-sector employees, at 2.5%, and is employee-funded. Each contribution is calculated on the applicable statutory base and processed in line with the relevant requirements and deadlines.
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.
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.
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