Hire in Nigeria
Nigeria PEO &
Employer of Record
Hire & manage teams remotely in Nigeria without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Business Language
English
Salary Currency
Nigerian Naira (NGN)
Payroll tax
1.00% - 12.00
Payroll Cycle
Monthly
Time zone
UTC + 1
Capital city
Abuja
Hire Employees in Nigeria
The NNRoad Advantage ☺
Pay as you go
Global account manager
Compliance
Fast Onboarding
Foreigner Visas
Platform
Employer of Record in Nigeria
01.
Candidate Selection
02.
Employee Onboarding
03.
Compliance & Payroll
04.
Payroll Reporting
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Nigeria
01.
Compliance & Payroll
02.
Payroll Reporting
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Nigeria
Employee Income Taxes:
Tax Brackets
11%: 300,000 – 600,000 NGN
15%: 600,000 – 1,100,000 NGN
19%: 1,100,000 – 1,600,000 NGN
21%: 1,600,000 – 3,200,000 NGN
24%: >3,200,000 NGN
Sample Calculation
7% * 300,000 = 21,000
11% * 300,000 = 33,000
15% * 400,000 = 60,000
21,000+33,000+60,000 = 114,000
Yearly income tax = 114,000 NGN
Employer Costs in Nigeria
Employer Contribution
10% – Employers must pay 10% of the employee’s salary for social security contributions.
Employee Contribution
8% – Employee must contribute 8% of their earnings towards social security.
Benefits & Insurance in Nigeria
Social Security
Nigeria has a social security system based on a pay-as-you-go model. The social security blanket covers some basic needs.
Working Hours in Nigeria
Working Hours Per Week
The work week in Nigeria typically does not exceed 40 hours per week. Overtime and overtime laws vary by industry and are oftentimes determined at the discretion of the employer.
Termination Laws in Nigeria
Nigeria has laws and regulations in place for what constitutes a lawful and unlawful termination. A termination notice must be issued prior to the dismissal of the employee. Employees with up to 3 months of employment require a 1 day notice. Employees with between 3 months and 2 years of employment require a 1 week notice. Employees with 2 to 5 years of experience require a 2 weeks notice. Employees with 5 years of employment or more require a 1 month termination notice. Severance pay can be substituted for notice period.
Severance
Severance in Nigeria is determined by pre-written and signed contracts and is only applied if the employee is terminated illegally.
Employment Contract in Nigeria
Employment Contract
Labor contracts for employment in Nigeria must be written out in the local language. The contract must state the salary, benefits, terms of compensation and termination scenarios. Along with the labor contract, an offer letter in Nigeria must always mention salary and compensation amounts in NGN.
Types of Leaves in Nigeria
Sick Leave
Employees in Nigeria are entitled to 12 days of paid sick leave per year.
Maternity Leave
Female employees are entitled to 12 weeks of paid maternity leave at 50% of normal pay.
Paternity Leave
Paternity leave in Nigeria is only available in the state of Lagos and Enugu. In Lagos, new fathers can take 2 weeks of paternity leave. In Enugu, new fathers can take 3 weeks of paternity leave.
Public Holidays in Nigeria
Public Holidays
Employees are entitled to 6 paid public holiday days off per year after one year of employment with the employer.
- 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