Seeking A Reliable Payroll Partner in Nigeria ?
With our Nigeria Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Nigeria’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Nigeria Country Overview
Geographic location: Located in western Africa, Nigeria is a country neighboring Benin, Cameroon, and Chad.
Population: With more than 211 million inhabitants, Nigeria is Africa’s most populated country. Nigeria’s official language is English, but it is significantly less spoken in rural areas. Other languages include Hausa, Yoruba, Igbo and more.
Economy: Nigeria has enjoyed economic growth due to its oil resources. However, the past few years has seen a decrease in oil production, which is likely to cause a deceleration in the country’s economic growth. However, the country can still count on its other major sectors such as services (53% of the GDP), tourism, and manufacturing to maintain a positive economic outlook.
Payroll in Nigeria - What You Should Know
- Population: 211,400,704
- Gross Domestic Product (GDP): $440.78 B
- GDP Growth (April 2021): 3.6%
- Inflation, consumer prices: 17%
- Foreign Direct Investment (% of GDP): 0.6%
- Unemployment Rate: 9.8%
- Capital: Abuja
- Currency: Nigerian Naira
- Languages: English, Hausa, Yoruba, Igbo
Employer Contribution
- 10.00% of the employee’s emoluments must be contributed to social security for pension.
- 1.00% must be contributed to the Employee Compensation Scheme
- 1.00% must be contributed to the Industrial Training Fund
Employee Contribution
- 8.00% of the employee’s emoluments must be contributed to social security for pension.
- 2.5% must be contributed to the National Housing Fund
- 1.00% must be contributed to the Industrial Training Fund
Value-added tax (VAT)
The standard VAT rate is 7.5% in Nigeria. Only a select few items are subject to a 0% VAT rating which means any VAT levied may be re-credited to the taxpayer.
Paid Time-Off
Employees are generally entitled to at least 6 days of paid annual leave at 100% wage. For workers under the age of 16, the amount of annual leave can increase to 12 days.
Sick Leave
In Nigeria, workers are generally entitled to 12 days of paid sick leave.
Maternity Leave
In Nigeria, women are entitled to a maximum of 12 weeks paid at 50% of their regular wage.
Paternity Leave
In the Lagos and Enugu States, men are entitled to 2 weeks and 3 weeks of paid paternity leave respectively.
In Nigeria, a contract of employment can be terminated at any time by either party – with or without reason by providing a notice period.
A contract of employment can also be terminated when it reaches its expiry date.
The required notice period varies depending on the employee’s seniority.
- one day for a period of three months or less
- one week for more than three months but less than two years of service
- two weeks for two to five years of service
- one month for five or more years
There is no statutory severance pay in Nigeria.
- New Year’s Day (1st January)
- Good Friday (10th April)
- Easter Monday (13th April)
- Labor Day (1st May)
- Eid al Fitr
- Democracy Day (12th June)
- Eid al Adha
- Nigerian Independence Day (1st October)
- Prophet’s Birthday
- Christmas Day (25th December)
- Boxing Day (26th December)
Nigeria Payroll Done The Easy Way. The Right Way.
12 Years of Experience
Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.
Bulletproof Compliance
Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.
+44 Countries in Africa
Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.
Single Point of Contact
Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.
Maximize your ROI
It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.
Swift Payroll Implementation
With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.
We Can Help. Just Tell Us How!
Related Services
Countries We Cover
In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.
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