What does a $60,000 hire cost in Nigeria?
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Total annual employer cost
Full cost breakdown
Statutory contributions and typical benefits for an employee in Nigeria at $60,000 base salary.
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Key Takeaways for Hiring in Nigeria
- Minimum wage: NGN 70,000/month
- Standard working hours: 8 hours/day per day / 40 hours/week per week
- Recommended hiring model: EOR
- Local currency: Nigerian naira (NGN)
Continent
Africa
Capital
Abuja
Currency
Nigerian Naira (NGN)
Language
English
Pay Date
Last working day of the month
VAT
7.5%
Overview
| Indicator | Details |
|---|---|
| Population | ~220 million |
| Language | English |
| Capital | Abuja |
| Currency | Nigerian naira (NGN) |
| Country code | +234 |
| Min wage | 70,000 NGN/month |
| Working hours | 8 hours per day |
| Weekdays | Monday to Friday |
| Work hours per week | 40 hours per week |
Payroll
Average employer cost
1% to 11%
| Category | Details |
|---|---|
| 13th Salary | Not mandatory; subject to employer discretion |
| Avg employer tax | 1% to 11% |
Tax Breakdown
Personal Income Tax (PIT)
Nigeria employs a progressive tax system for individual income
| Category | Rate / Details |
|---|---|
| ₦0 – ₦300,000 | 7% |
| ₦300,001 – ₦600,000 | 11% |
| ₦600,001 – ₦1,100,000 | 15% |
| ₦1,100,001 – ₦1,600,000 | 19% |
| ₦1,600,001 – ₦3,200,000 | 21% |
| Above ₦3,200,000 | 24% |
Corporate Income Tax (CIT)
| Category | Rate / Details |
|---|---|
| Standard Rate | 30% |
| Small Companies | 0% for gross turnover ≤ ₦25 million |
| Medium Companies | 20% for gross turnover between ₦25 million and ₦100 million |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 7.5% |
Onboarding Process
Onboarding in Nigeria typically includes the following steps to ensure a smooth transition for new hires:
- Employment Contract
- Registration with Authorities
- Payroll Setup — Ensure accurate calculation and withholding of taxes, pension contributions, and other statutory deductions
- Employee Documentation — Collect personal identification, bank account details, and tax information
- Workplace Policies — Provide access to company policies, health and safety guidelines, and any applicable collective agreements
- Pre-boarding — Pre-boarding Pre-boarding
Employee Leave Policies
Sick Leave
- Entitlement: Up to 12 working days of paid sick leave per calendar year
- Certification: Must be certified by a registered medical practitioner
Maternity Leave
- Duration: 3 months (12 weeks)
- Compensation: Employer is required to pay no less than 50% of the employee’s salary during this period
Note: A bill to increase maternity leave from 12 weeks to 24 weeks has passed its second reading in the House of Representatives
Paternity Leave
- Federal Civil Service: 14 days of paid paternity leave for male employees
- State Governments: Varies; for example, Enugu State offers 3 weeks, while Lagos State offers 2 weeks for the first two children
Annual Leave
- Statutory Leave: At least 6 working days per year after 12 months of continuous service
- Young Workers (Under 16): At least 12 working days per year
8 Public holidays in Nigeria
Note: Additional holidays may be observed based on regional practices and religious calendars.
| Month | Date | Holiday |
|---|---|---|
| January | 1st | New Year’s Day |
| April | 30th | Eid al-Fitr |
| May | 1st | Eid al-Fitr Labour Day |
| June | 7th | Eid al-Adha |
| June | 8th | Eid al-Adha |
| June | 12th | Democracy Day |
| October | 1st | Independence Day |
| December | 25th | Christmas Day |
| December | 26th | Boxing Day |
Termination Process
| Requirement | Details |
|---|---|
| Permissible Grounds | Mutual agreement Redundancy Misconduct Performance issues |
| Notice Period | Employee-Initiated: 1 day to 1 month, depending on the length of service Employer-Initiated: 1 day to 1 month, depending on the length of service Severance Pay: Not mandatory; subject to employment agreements |
| Probation Period | Typical Duration: 3 to 6 months Extension: Any extension beyond the stipulated period must be formalized in writing and is subject to legal scrutiny |
| Personal Details | Name, contact information, and role of the employee. |
Legal Disclaimer: The information provided in this guide is intended for general informational and guidance purposes only and does not constitute legal, financial, or human resources advice. While we strive to keep the information up to date and accurate, laws and regulations in Nigeria are subject to change. We recommend consulting with qualified legal and HR professionals for advice specific to your situation. RemotePass does not accept liability for any errors, omissions, or outcomes related to the use of this information.
