Nigeria is located in West Africa and is the most populous country on the continent.
Payroll and Benefits Guide - Nigeria
Fun Facts
Delicious cuisine, including jollof rice and suya.
Lagos, the largest city in Nigeria, is also the most populous city in Africa.
Talented athletes in football, basketball, and track and field.
Major oil producer in Africa.
National parks and wildlife reserves.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Pension | 8.00% |
| Housing Fund applicable to employees | 2.50% |
Employer Payroll Tax
| Contribution Type | Rate |
| Pension | 10.00% |
| National Social Insurance Trust Fund | 1.00% |
| Industrial Training Fund | 1.00% |
Payroll
Payroll Cycle
The payroll cycles are monthly, bi-weekly or weekly
13th Salary
There are no statutory requirements for 13th-month salary payments. However, bonuses are common at the discretion of the employer.
Work Hours and Week
48 hours, 8 hours per day. A 40-hour workweek with 8 hours per day is common as well. Monday–Friday
Overtime
There is no legal mandate on how much overtime pay to give but the terms of overtime should be laid out in the employment contract.
Leave
Paid Time Off
Minimum of 6 days paid leave a year after the completion of 1 year of employment.
Public Holidays
There are 10 holidays.
Sick Days
12 days of paid sick leave per year
Maternity Leave
Female employees in the public sector in Nigeria are entitled to 16 weeks of fully paid maternity leave, while those in the private sector receive 12 weeks of partially paid maternity leave after six months of consecutive service.
Paternity Leave
There is a 14 working days paternity leave for men.
Parental Leave
A There are no provisions in the law regarding parental leave.
Termination
Termination Process
Termination of employment in Nigeria depends on the terms of the employment and collective agreements, contract type, and reason, allowing either the employer or employee to terminate with appropriate notice.
Notice Period
In Nigeria, the notice period for termination is typically one day for employees with three months of service or less, one week for three months to two years, two weeks for two to five years, and one month for five or more years of service.
Severance Pay
Redundancy pay is compulsory for manual and clerical workers covered by the labor act, with the specific amount left to negotiation by the employer. For those not protected by the labor act, severance pay is typically determined by the employment contract or collective agreement.
Probation Period
Probation Period
No probation period is required but it is common to use 3-6 months.
Immigration
Nigeria Immigration Service (NIS): The NIS is responsible for processing work permit applications and ensuring compliance with immigration regulations.
Different work visas/permits are available.
For a Work Visa, the below documents need to be completed:
- Valid passport
- Application form
- Proof of qualifications/work experience
- Official approval of the expatriate quota
- Official job offer
- Proof of funds
- Application fees
- Request for regularization from the employer
- Employer’s business license.
For Work Permits
Temporary Work Permit (TWP): The Temporary Work Permit is the main category for foreign nationals engaging in short-term work assignments in Nigeria.
The STR visa is for foreign nationals intending to work in Nigeria for a long-term or extended period.
VAT
The standard rate of VAT in Nigeria is 7.50%.