Nigerian Naira (NGN)
Onboard, pay and manage employees in Nigeria with Deel.
Usually, to hire in Nigeria, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Deel lets you hire employees in Nigeria quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
All the necessary benefits for Nigeria
built right in
Deel allows you to provide localized benefits for employees in Nigeria within minutes. All in one manageable online dashboard.
- Industrial Training Fund
- Private Healthcare - Unisure (optional)
- National Pension Fund
- Private Healthcare - AXA (optional)
Our quickstart guide to hiring in Nigeria
Navigate the tabs below to learn everything you need to know about hiring an employee in Nigeria
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 7% to 24%. Income tax is calculated based on income tax bands.
|Gross Annual Income (NGN)||Tax Rate (%)|
|Up to 300,000||7%|
|Up to 600,000||11%|
|Up to 1,110,000||15%|
|Up to 1,600,000||19%|
|Up to 3,200,000||21%|
The employer cost is generally estimated at 12.0% of the employee salary.
- Industrial training fund - 1.10%
- Nigeria Social Insurance Trust Fund - 1.0%
- National Pension fund - 10.0%
- Life Insurance (GPA) - 1.8%
Overtime Pay & Maximum Hours
Overtime payment is not mandatory. Hours outside of standard work hours are considered overtime. There are no maximum working hours. There is no rate of pay for overtime specified by law, rather it is based on the employer’s discretion.
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
The employee can extend leave in case of illness, certified by the registered medical practitioner.
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Nigeria can be complex. There is no at-will termination in Nigeria for employers and termination must be done for just cause. Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- By the expiration of the contract
- Unilaterally by the employer based on:
- Objective grounds
- Disciplinary dismissal
- Criminal offense
- Performance due to unsuitability for the job
- Permanent incapacity due to accident or ill-health
In cases regarding allegations of misconduct, the employer is not required to provide notice.
Severance for Employees
All manual and clerical employees (covered by the Labour Act) are entitled to redundancy pay. There is no legal requirement for the amount of redundancy pay; it is based on the employer’s discretion.
Paid Time Off
Full-time employees under the age of 16 are entitled to 12 days of paid time off (PTO) a year.
- New Year’s Day
- Good Friday
- Easter Monday
- Worker’s Day
- Sallah National Holiday (2 days)
- Democracy Day
- Id el Kabir (Feast of Sacrifice)
- Independence Day
- Christmas Day
- Boxing Day
- Public holiday (Anambra)
- Sambisa Memorial Day (in Borno)
Employment Contract Details
A contract must include:
- Start date
- Duties and responsibilities
- Hours of work
- Compensation and other benefits
- Termination conditions
Probation periods help an employer and the employee ensure they're a hiring match, allowing a company to quickly decide if it's a fit and the employee to see if the job aligns with their career goals.
Hiring in Nigeria, hassle-free
With Deel, your business can easily hire employees in Nigeria with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Nigeria and 150+ countries.
Estimate Employer Cost
*of employee salary