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

NNRoad provides employer of record (EOR)professional employment organization (PEO) services to ensure that your business in Nigeria complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Hiring with NNRoad

Pay as you go

No set-up or overhead costs to global expansion.

One P.O.C.

One point of contact for all your EOR employees.

Compliance

Ensured compliant contracts and operations.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Nigeria

Employer of Record (EOR) services are for companies who do not have a legal entity in Nigeria, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

01.

Candidate Selection

You interviews & select the candidates you want to hire in Nigeria.

02.

Employee Onboarding

We sign a local labor contract with your employees based in Nigeria.

03.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Nigeria.

04.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Nigeria.

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

Professional Employment Organization (PEO) services are for companies who have a legal entity in Nigeria, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

01.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Nigeria.

02.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Nigeria.

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

employer of record Nigeria peo

Taxes & Payroll in Nigeria

Employee Income Taxes:

Individual income tax rates in Nigeria are based on progressive tax brackets.

Tax Brackets

7%: 0 – 300,000 NGN
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

Yearly income = 1,000,000 NGN
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.

nigeria peo and eor

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.

peo nigeria

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

Resources

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