Nigeria
Employ in Nigeria without an entity.
A contract under Nigerian labour law, pay in naira, and pension, health insurance, income tax and the statutory levies handled every month. One contact and one invoice.
The facts of employing in Nigeria.
Paid in naira, every month.
With a day of rest in every seven.
Pension of at least 18%.
At least 10% from the employer and 8% from the employee, on basic pay and the housing and transport allowances.
Income tax from 0% to 25%.
On annual bands, under the Nigeria Tax Act 2025.
A national minimum wage.
NGN 70,000 a month.
What employing in Nigeria involves, in plain words.
Each is handled for everyone you employ through Global Kinect EOR.
- Contracts
A written statement of the terms within three months of starting. A trial period is a matter for the contract.
- Pension
Under the Pension Reform Act 2014, on monthly emoluments.
- At least 10% from the employer and 8% from the employee.
- Group life insurance of at least three times annual pay, from the employer.
- Health insurance
Mandatory for every resident, through a State health insurance scheme.
- The employer registers its staff and pays the contributions the State's scheme sets.
- PAYEIncome tax
Withheld by the employer each month, under the Nigeria Tax Act 2025.
- The first NGN 800,000 a year is taxed at 0%, then rising through 15%, 18%, 21% and 23% to 25% above NGN 50,000,000.
- Pay at or below the national minimum wage is exempt.
- Rent relief: 20% of annual rent paid, up to NGN 500,000.
- NSITFEmployee compensation
At least 1% of total monthly pay, from the employer alone.
- None of it is deducted from staff.
- ITFTraining levy
1% of annual pay, for employers with 25 or more staff outside a free trade zone.
- Leave
At least 6 working days of annual leave on full pay, after twelve months.
- Sick leave: up to 12 paid working days a year.
- Maternity leave: six weeks before and six after the birth, on at least 50% of pay after six months' service.
- Ending employment
Notice of a day in the first three months, a week to two years, two weeks to five years, then a month.
- Redundancy pay has no fixed formula, and the employer must try to negotiate it.
Hiring in Nigeria, step by step.
You choose the person
And agree the role and the salary in naira.
The contract is put in place
Under Nigerian labour law, with a work permit where one is needed.
They are paid monthly
In naira, with pension, health insurance, income tax and the statutory levies handled.
You get one invoice
With every other country you hire in.
Questions about employing in Nigeria
What does an employer pay on top of salary in Nigeria?
Employers in Nigeria pay at least 10% of monthly emoluments into the employee's pension, on top of the employee's own 8%. They keep group life insurance for each employee, of at least three times annual pay. They pay at least 1% of total monthly pay to the Nigeria Social Insurance Trust Fund for employee compensation. Employers with 25 or more staff outside a free trade zone also pay 1% of annual pay to the Industrial Training Fund.
Do these rules cover every employee?
Can we employ a foreign national?
Employing in Nigeria, worked through in full.
The guide goes further than this page.
- Hiring in Nigeria: the expatriate quota, the contract and what comes off pay, step by step
How you hire in Nigeria without an entity of your own: the expatriate quota and the residence permit step by step, moving someone already in Nigeria, the contract, the employee test, what comes off pay each month, leave, and what changed this year.
8 min read