Nigeria Employment Guide

Understanding Nigeria's Minimum Wage Regulations

In Nigeria, the national minimum wage is set at 70,000 Naira per month. This baseline compensation is crucial for employers to adhere to when structuring payroll for local employees.

Personal Income Tax Structure in Nigeria

Nigeria employs a progressive personal income tax system, with rates ranging from 7% to 24%. The applicable rate depends on the employee's annual income bracket, ensuring a fair contribution based on earnings.

Calculating Total Employment Costs

Beyond the gross salary, employers in Nigeria should budget for additional statutory contributions, which typically amount to approximately 12% of the employee's wage. These mandatory costs include:

• Industrial Training Fund: 1.10%
• Nigeria Social Insurance Trust Fund: 1.0%
• Pension Contribution: 10.0%
• Group Life Assurance: 1.8%

For instance, a company like SailGlobal, when hiring locally, must factor in these percentages to accurately project the total cost of employment. It is advisable to consult with HR experts or local authorities for precise calculations tailored to specific roles.

Overtime Policies and Standard Working Hours

Nigerian labor law does not mandate specific overtime pay rates. Work performed beyond the standard hours is considered overtime, but the compensation is typically determined by the employer's internal policy or individual employment contracts.

The standard work schedule is defined as 8 hours per day and 40 hours per week, usually from Monday to Friday. There is no statutory upper limit on maximum working hours, offering flexibility but also placing responsibility on employers to ensure reasonable work conditions.

For example, multinational companies operating in Nigeria often establish clear overtime guidelines to maintain compliance and employee satisfaction, even beyond legal requirements.