Employer of Record in Nigeria
General Information
- Currency: Nigerian Naira (NGN)
- Employer Taxes: 1.00% to 12.00%
- Payroll Frequency: Monthly / Bi-monthly / Weekly
- Employee Costs: 10.5%
- Capital: Abuja
- Fiscal Year: 1 January – 31 December
Main Aspects of the Labour Code
Minimum Wage
General: The national minimum wage in Nigeria is currently 30,000 NGN per month.
Payroll
Payroll Cycle: In Nigeria, payroll can be processed monthly, bi-weekly, or weekly. However, salaries must be paid at least once a month.
13th Salary
There are no statutory requirements for 13th-month salary payments in Nigeria. Nonetheless, employers often provide bonuses at their discretion.
Working Hours
General: In Nigeria, the standard working week is typically 48 hours, with 8-hour workdays. However, a 40-hour workweek with 8-hour days is also common.
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
Annual Leave (Vacation):
Employees who have been with the company for 12 months are entitled to 6 days of paid annual leave. It is also common practice to offer 7 days from the start of employment. Unused leave can be carried over, subject to the employer’s discretion.
Public Holidays
Public holidays that fall on weekends are typically not observed unless the government has mandated a day off in lieu.
Religious holidays, which are based on the lunar cycle, are initially tentative and are confirmed closer to the date of the holiday.
Public Holidays
| Date | Day | Holiday |
| 1 Jan 2024 | Monday | New Year’s Day |
| 29 Mar 2024 | Friday | Good Friday |
| 1 Apr 2024 | Monday | Easter Monday |
| 9 Apr 2024 | Tuesday | Id el Fitr |
| 10 Apr 2024 | Wednesday | Id el Fitr holiday |
| 11 Apr 2024 | Thursday | Id el Fitr holiday |
| 1 May 2024 | Wednesday | Workers’ Day |
| 12 Jun 2024 | Wednesday | Democracy Day |
| 15 Jun 2024 | Saturday | Id el Kabir |
| 16 Jun 2024 | Sunday | Id el Kabir |
| 17 Jun 2024 | Monday | Id el Kabir Holiday |
| 18 Jun 2024 | Tuesday | Id el Kabir Holiday |
| 16 Sep 2024 | Monday | Id el Maulud |
| 1 Oct 2024 | Tuesday | National Day |
| 25 Dec 2024 | Wednesday | Christmas Day |
| 26 Dec 2024 | Thursday | Boxing Day |
Sick Days
Employees are entitled to 12 days of paid sick leave per year. To receive this benefit, they must present a medical certificate after being absent for two days. Sick leave is paid at full salary by the employer.
Maternity Leave
Female employees in the public sector are entitled to 16 weeks of maternity leave at 100% of their average pay rate. In comparison, private-sector employees receive 12 weeks of paid maternity leave at 50% of their average salary. This entitlement is available after six months of continuous service with the company.
Paternity Leave
There is a 14 working days paternity leave for men.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
There are no provisions in the law for additional statutory leave.
Taxation
Employer Payroll Contributions
|
10.00%
|
Pension (applicable to employers with more than fifteen employees)
|
| 1.00% | National Social Insurance Trust Fund (NSITF) |
|
1.00%
|
Industrial Training Fund (ITF) (applicable to all employers with a minimum of five employees or annual turnover of 50 million NGN) |
| 1.00% to 12.00% |
Total Employer Cost |
Employer Payroll Contributions
|
8.00%
|
Pension
|
|
2.50%
|
Housing Fund applicable to employees earning more than 3,000 NGN per year)
|
| 8.00% to 10.50% |
Total Employee Cost |
Employee Income Tax
|
7.00%
|
First 300,000 NGN Annually
|
|
11.00%
|
Next 300,000 NGN Annually
|
|
15.00%
|
Next 500,000 NGN Annually
|
|
19.00%
|
Next 500,000 NGN Annually
|
|
21.00%
|
Next 1.6 million NGN Annually
|
| 24.00% | Above 3.2 million NGN Annually |
Employer of Record in Nigeria with Brain Source International
In Nigeria, Brain Source International offers Employer of Record (EOR) services to streamline your employment and compliance needs. Here’s an overview of whatBrain Source International provides as your EOR in Nigeria:
Key EOR Services in Nigeria
- Compliance and Legal Representation:
- Ensure adherence to Nigerian labor laws and regulations.
- Handle legal requirements and represent your company in compliance matters.
- Payroll Management:
- Manage payroll processing, including salary disbursements.
- Ensure timely and accurate payments in accordance with local laws.
- Benefits Administration:
- Administer employee benefits such as health insurance and retirement contributions.
- Handle statutory contributions like pension and social security.
- Recruitment and Onboarding:
- Assist with recruiting and hiring processes.
- Facilitate smooth onboarding of employees, ensuring they are set up correctly within the Nigerian regulatory framework.
- Tax and Reporting:
- Handle all tax-related matters, including deductions and filings.
- Ensure compliance with Nigerian tax laws and reporting requirements.
- Employment Contracts and Documentation:
- Draft and manage employment contracts in accordance with Nigerian labor laws.
- Ensure all necessary documentation is in place for employees.
- HR Support and Employee Management:
- Provide ongoing HR support, including handling employee queries and issues.
- Manage performance evaluations and disciplinary actions if necessary.
Payroll and Working Hours in Nigeria
- Payroll Cycle: Typically, salaries are paid on a monthly basis. Employers are required to make salary payments by the last working day of the month.
- Standard Working Hours: The standard workweek in Nigeria is usually 40 hours, spread over 5 days. The typical workday is 8 hours.
- Overtime: Overtime pay is often stipulated in the employment contract or collective agreements. The Nigerian labor law provides for additional compensation for overtime work beyond standard hours.
- Annual Leave: Employees are generally entitled to a minimum of 12 working days of annual leave per year. This may be increased based on the employment contract or company policy.
- Sick Leave: Sick leave provisions are typically defined in the employment contract. Employers are required to adhere to the statutory guidelines on sick leave and pay.
By partnering with Brain Source International as your EOR in Nigeria, you can ensure that your employment practices are compliant with local regulations while focusing on your core business operations.