Hire and pay employees in

Nigeria, hassle-free

Hire and pay employees in Nigeria, hassle-free

With Deel, your business can easily hire employees in Nigeria. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Nigeria is 2 days with Deel.

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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.

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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)
Nigeria Social Insurance Trust Fund (NSITF)
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

The minimum wage is NGN 30,000 per month.

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%
Over 3,200,000	24%

Payroll Cost

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.

Maternity Leave

Pregnant employees who have worked for six consecutive months or more are entitled to 12 weeks of paid leave. six weeks must be taken before the child's birth, and six weeks must be taken after the child's birth. The employee will receive a minimum of 50% of the salary during this period, and the employer will be responsible for this pay.

The employee can extend leave in case of illness, certified by the registered medical practitioner.

Paternity Leave

There is no paternity leave currently required by law.

Parental Leave

In Nigeria, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 12 days. The leave can be taken in the case of illnesses certified by a registered medical practitioner. During this leave, employees are entitled to 100% of their base salary, and the employer is responsible for this pay.

Termination Requirements

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

Notice Period

In Nigeria, there is no statutory requirement to provide a notice period. However, best practice includes 30 days notice for non-senior employees and a minimum of 30 days for senior employees.

In cases regarding allegations of misconduct, the employer is not required to provide notice.

Severance for Employees

For employees not covered by the Labour Act, there are no statutory requirements for severance payments. During the notice period, the employee will receive standard salary wages.

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 are entitled to 6 days of paid time off (PTO) a year. PTO accrues monthly, 0.5 days per month. Employees are eligible for annual leave after 12 months of work.

Full-time employees under the age of 16 are entitled to 12 days of paid time off (PTO) a year.

Public Holidays

Nigeria celebrates 10 national holidays and 2 regional holidays. National public holidays include:

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

Nigeria celebrates 2 regional holidays:

Public holiday (Anambra)
Sambisa Memorial Day (in Borno)

Onboarding

Onboarding takes 2 business days after the client signs the SOW.

Employment Contract Details

Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

Name
Start date
Duties and responsibilities
Hours of work
Compensation and other benefits
Termination conditions

Probation Period

Employees hired using Deel have a probation period of 90 days, which you can extend up to 180 days. As of January 2022, it's Deel company policy to include probation periods in all employment contracts moving forward.

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.

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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.

599 USD

Management fee

13.9%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Nigeria?

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