nigeria

Nigeria

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Minimum wage

What are the minimum wage requirements?

Nigeria’s minimum wage was set at N30,000.00 in April 2019 by the Federal Government, and it has remained the same over the years. The minimum cost of healthy living for an adult per month at the beginning of 2022 stood at N40, 980.00 in Nigeria, Picodi.com reported.

Contributions & Taxes

The minimum contribution under the Act is 18% of monthly emolument (with a minimum contribution of 10% by the employer and 8% by the employee).

Employer

Income tax rates range from 7% to 24%. Social security: Social security contributions in Nigeria cover benefits for retirement, disability, sickness and maternity. Employees contribute a minimum of 8% of their salary, while employers must contribute around 10% to the various benefit schemes.

Corporate

The Corporate Tax Rate in Nigeria stands at 30 percent. source: Federal Inland Revenue Service, Nigeria.

Employee

Income tax rates range from 7% to 24%. Social security: Social security contributions in Nigeria cover benefits for retirement, disability, sickness and maternity. Employees contribute a minimum of 8% of their salary, while employers must contribute around 10% to the various benefit schemes.

Income Tax

The Personal Income Tax Rate in Nigeria stands at 24 percent. source: Federal Inland Revenue Service, Nigeria.

Payroll

What is the payroll cycle?

In Nigeria, the payroll frequency is monthly, bi-weekly or weekly. The payment for salaries is to be made at least once a month.

Is there 13th salary in Nigeria?

There are no statutory requirements for 13th-month salary payments. However, bonuses are common at the discretion of the employer.

Labor Rules

Probation period rules

The three month period has been interpreted to be a probation period under Nigerian employment norm. The law does not prescribe the maximum length of probation periods. But in practice, probationary periods for employees is between three (3) and six (6) months.

Notice Period 

The notice period is one day for a period of three months or less; one week for more than three months but less than two years of service; two weeks for two to five years of service and one month for five or more years.

Severance Period

In relation to Workers, the minimum notice periods to be given to the employees pursuant to section 11 of the Labor Act are: one day, if the length of service is up to three months; one week, if the length of service is up to two years; two weeks, if the length of service is up to five years.

Leave and Benefits

Leave and Benefits rules

Leave policy

In Nigeria, workers are granted one weekly rest day of not less than twenty-four hours after six continuous working days. Weekly rest days are paid days and employees must not work on weekly rest days. If an employee has to work on weekly rest days, additional day off or monetary compensation is provided.

Public holidays

  • New Year’s Day
  • Good Friday
  • Easter Monday
  • Labor Day
  • Democracy Day
  • Id el Fitri
  • Id el Kabir
  • National Day
  • Id el Moulud
  • Christmas Day
  • Boxing Day

Sick leave

In general, employees are entitled to 12 days of paid sick leave per year.

Maternity leave & Paternity leave

Female employees are generally entitled to 12 weeks of maternity leave at 50% of pay.

Paid paternity leave is available in the Lagos and Enugu States of 2 weeks and 3 weeks respectively.

Other leave (marriage, bereavement, exam leave)

Bereavement leave

Conventionally, the practice is that such employees are entitled to nine to 12 weeks of sick leave and, in many cases, bereavement leave of up to one week and other compassionate leave, which may range from one to two weeks

Marriage leave

A civil servant will be allowed up to 5 days special leave at the time of marriage subject to an overall total between annual leave and marriage leave of 27 days in the leave year in which the marriage takes place.

Insurance

Health Security & Private Insurance

* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*

Visa

Native Teams can support you in finding a Visa in Nigeria. Contact us and we will send a comparison of Visa packages and prices*