Hire in Nigeria

Nigeria

PEO &

Employer of Record

Hire employees 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)

Capital city

Abuja

Time zone

UTC + 1

EOR in Nigeria

Hire Employees in Nigeria

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

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 (EOR) 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.

1. Candidate Selection

Select the candidates you want to hire in Nigeria.

2. Employee Onboarding

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

3. Compliance & Payroll

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

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll in Nigeria

Payroll services are for companies who have a legal entity in Nigeria, and want to outsource their salary disbursement, mandatory benefits, income tax filing and mandatory reports.
employer of record Nigeria peo

Employer of Record Status in Nigeria

Using an Employer of Record (EOR) to hire employees in Nigeria is a legally recognized method that allows businesses to employ workers without establishing a local entity. An EOR manages essential HR functions, such as payroll, tax compliance, and benefits administration, ensuring adherence to Nigerian employment laws.

Hiring an Expat with an EOR in Nigeria

For hiring foreign expats, the EOR facilitates obtaining the necessary work visas and permits, ensuring all legal requirements are met. In Nigeria, expats need a Subject to Regularization (STR) visa and a Combined Expatriate Residence Permit and Aliens Card (CERPAC) to work legally.

Employee Income Taxes:

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

Tax Brackets:

Sample Calculation

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
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 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.

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 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.

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

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.

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

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
peo nigeria

Resources

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