Hire compliantly in Nigeria. Navigate the 2026 PAYE tax reform, pension contributions across five regulatory agencies and Africa’s largest talent market.
Capital
Abuja
Language
English
Average Salary
NGN 250k
Payroll Cycle
Monthly
Employer Cost
12-15%
Paid Leave
6 days
Public Holidays
12-14 days
Tax Rates
0-25%
Detailed guides on the employment topics that matter most when hiring in Nigeria. Independently researched, updated for 2026.
The average salary in Nigeria is roughly ₦339,000 per month ($220 USD). That number hides everything. A senior fintech engineer in Lagos earns ₦4,000,000. A teacher in Kano earns ₦65,000. This guide breaks down real salaries by sector, job title, and city, plus the ₦70,000 minimum wage, employer costs (pension, NHIS, NSITF), PAYE tax brackets, how Nigeria compares to India, Philippines, and South Africa as a hiring market, and what international companies need to know about infrastructure, Naira volatility, and paying in USD.
Read ArticleThe minimum wage in Nigeria is ₦70,000 per month (approximately $42 USD), set by the National Minimum Wage (Amendment) Act 2024 and unchanged in 2026. Despite being Africa's largest economy, Nigeria's minimum wage is one of the lowest in the world in dollar terms, eroded further by inflation above 33% and naira depreciation. Implementation varies dramatically across the country's 36 states, with Lagos paying ₦85,000 and some states still struggling to pay the legal minimum. This guide covers everything: the current rate, state-by-state variations, employer costs including pension, NSITF, and PAYE, how the minimum wage compares across Africa, the labour push for ₦154,000, and what it means for international companies hiring Nigerian talent.
Read Article
We independently review and rank providers based on their actual performance in Nigeria, covering pricing transparency, onboarding speed, in-country support and hiring compliance.
Nigeria’s Personal Income Tax Act was replaced by the Nigeria Tax Act 2025, effective January 2026. New tax bands, the removal of CRA, and changes to NHF calculation basis mean every payroll formula changed. A provider still using pre-2026 calculations is getting every payslip wrong.
| Key Employment Facts | |
| Minimum Wage | NGN 70,000/month (employers with 25+ staff) |
| Probation Period | 3-6 months (contractual, not statutory) |
| Standard Working Hours | 40 hours/week (8 hours/day) |
| Paid Annual Leave | 6 working days (after 12 months, Labour Act) |
| Notice Period | 1 day to 1 month (by length of service) |
| 13th Salary | Not statutory (bonuses common in December) |
| Sick Leave | Up to 12 days at full pay (Labour Act) |
| Maternity Leave | 12 weeks at 50% pay (Labour Act) |
Good to Know: The Labour Act’s 6-day annual leave minimum is one of the lowest globally. In practice, most Nigerian employers offer 15-21 days to remain competitive, especially for skilled roles. If your contract only provides the statutory 6 days, you will struggle to hire and retain talent.
Nigeria's employer cost structure is moderate at 12-15% of pensionable income, but the number of separate agencies and filing obligations makes compliance operationally complex.
| Employer Contributions | |
| Contribution | Employer Rate |
| Pension (PenCom) | 10% of pensionable income |
| NSITF (Employee Compensation) | 1% of monthly payroll |
| NHIS (Health Insurance, if 10+ employees) | 10% of basic salary |
| ITF (Training Fund, if 5+ employees or NGN 50M+ turnover) | 1% of annual payroll |
| EEL (Expatriates only) | USD 10,000-15,000/year per expat |
| Total Employer Cost (excl. EEL) | ~12-15% of pensionable income |
| Employee Taxes | |
| Tax / Contribution | Employee Rate |
| PAYE (progressive, 2026 reform) | 0-25% (6 bands, 0% on first NGN 800,000) |
| Pension (employee share) | 8% of pensionable income |
| NHF (voluntary for private sector) | 2.5% of gross salary |
| NHIS (employee share, if enrolled) | 5% of basic salary |
Good to Know: Total employer cost in Nigeria runs at approximately 1.12x to 1.15x of pensionable income for mandatory contributions. For an employee earning NGN 400,000/month in Lagos, budget approximately NGN 448,000 to NGN 460,000 in total employer cost. The real complexity isn’t the percentage, it’s the five separate agencies with five separate portals, five separate deadlines and five separate penalty regimes. Getting the math right is straightforward. Getting the filings right across all agencies every month is where most providers fail.
Nigeria observes 11 national public holidays. Islamic holidays shift annually based on the lunar calendar. State governors may declare additional local holidays.
| Date | Holiday |
| January 1 | New Year’s Day |
| March 20-21 | Eid el-Fitr (approximate, 2 days) |
| April 3 | Good Friday |
| April 6 | Easter Monday |
| May 1 | Workers’ Day |
| May 27 | Children’s Day |
| May 27-28 | Eid el-Kabir (approximate, 2 days) |
| June 12 | Democracy Day |
| August 25 | Eid el-Maulud (approximate) |
| October 1 | Independence Day |
| December 25 | Christmas Day |
| December 26 | Boxing Day |
Good to Know: When a public holiday falls on a weekend, the following Monday is typically declared a work-free day by the federal government. Eid el-Fitr and Eid el-Kabir are each observed for 2 days. State governors occasionally declare additional holidays for regional events or elections, which can vary between Lagos, Abuja and other states.
Use the Employsome EOR Comparison Tool to filter providers by Nigeria coverage, pricing, entity type and supported services. Over 130 EOR providers compared side by side.
