Important Notes about Payroll in Nigeria

20% of gross income + (200,000 Naira or 1% of Gross Income, whichever is higher)

Finance Act 2020 impacts on CRA reducing the resulting value where statutory deductions are involved.

Every employer with 15 or more employees.

Employer to contribute minimum of 10% of the sum of Basic Salary, Housing Allowance, and Transport Allowance, while employee to contribute minimum of 8%.

Any employee earning basic salary of Three thousand Naira (NGN 3,000) or more is expected to contribute to the National Housing Fund.

UPDATE (MARCH 2023)
This requirement is no longer mandatory for private sector organizations as amended by the Business Facilitation Act, 2023

Employee contributes 2.5% of basic salary.

(Reference: See section 4 subsection 1 of the National Housing Fund Act, 2004 )

Every employer with 10 or more staff is expected to deduct National Health Insurance Scheme from staff emolument.

Employer contributes 10% of basic salary while employee contributes 5% of basic salary.

10th of every month is the due date for remitting PAYE tax deducted from staff salary to the relavant tax authority (RTA)

Pension is to be remitted to pension fund administrator not later than 7 working days after salary payment.

NHF is required to be remitted to Federal Mortgage Bank of Nigeria (FMBN) within one month after salary payment.

January 31st of every year is the due date for filing employee tax returns by corporate organization with relavant tax authority (RTA)

Individual persons have to March 31st of each year to file income tax returns.