Hire and pay employees in Nigeria, compliantly from day one
Nigeria's labour market is one of Africa's largest, but PAYE, pension, housing fund, and employer levies make local payroll easy to get wrong. Kashia Hire places vetted talent on compliant contracts; Kashia HR runs statutory payroll automatically.
Currency
Nigerian Naira (NGN)
Capital
Abuja
Working language
English
Typical pay cycle
Monthly
Statutory benefits
What employers must provide in Nigeria
Every market has non-negotiable contributions and entitlements. Kashia HR tracks and calculates these automatically, no spreadsheets required.
- PAYE income tax (progressive bands)
- Pension, PenCom (8% employee / 10% employer)
- National Housing Fund (NHF), 2.5% of basic
- National Health Insurance (NHIA)
- Industrial Training Fund (ITF), employer levy
- NSITF, employee injury compensation
Kashia Hire
Direct hire & outsourcing
Source verified developers, designers, and operators from Nigeria. Kashia prepares employment contracts, handles onboarding paperwork, and keeps you compliant without registering a local entity.
Learn moreKashia HR
Compliant Nigerian payroll
PAYE, pension, NHF, NHIA, ITF, and NSITF calculated and remitted automatically. Payslips, bank disbursement, and statutory reports from one dashboard.
Learn moreKashia Vault
Secure milestone payments
Pay Nigerian contractors or project teams through escrow, funds release when deliverables are approved, with a clear audit trail for cross-border deals.
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Onboarding
Contract signed
Step 2 of 3
Onboard, pay, and manage Nigerian employees with Kashia
Traditionally, hiring in Nigeria meant setting up a local entity, registered address, and corporate bank account, then navigating federal and state tax rules, pension registration, and monthly remittances. That process can take months.
With Kashia, you can hire in Nigeria in weeks. We handle contracts, statutory deductions, and payroll runs so your team focuses on the work, not back-office compliance.
Reference guide
Hiring in Nigeria: what you need to know
Pay, leave, onboarding, and compliance essentials, updated for teams using Kashia.
Minimum wage
The national minimum wage is ₦70,000 per month (2024). Some states and industries may apply higher rates through collective agreements.
Individual income tax (PAYE)
Under the Nigeria Tax Act reforms effective 2026, the first ₦800,000 of annual income is exempt from PAYE. Above that threshold, tax is calculated on progressive bands.
| Annual taxable income (NGN) | Rate |
|---|---|
| First ₦800,000 | 0% |
| ₦800,001 – ₦1,600,000 | 7% |
| ₦1,600,001 – ₦3,200,000 | 11% |
| ₦3,200,001 – ₦6,400,000 | 15% |
| ₦6,400,001 – ₦12,800,000 | 19% |
| Above ₦12,800,000 | 21–25% |
Employer payroll costs
Beyond gross salary, employers typically budget roughly 12–15% for statutory contributions and levies:
- Pension (employer), 10% of emoluments
- Industrial Training Fund, ~1% of annual payroll
- NSITF, ~1% of monthly payroll
- NHF, 2.5% withheld from employee basic salary
- NHIA, health insurance contributions per scheme
Filing & remittance
PAYE is remitted to the relevant State Internal Revenue Service. Pension goes to a PFA via PenCom. Most employers file and pay monthly, with annual returns due early in the new year.
Figures are provided as general estimates for planning purposes. Tax rates, contribution caps, and filing deadlines change, confirm current rules with a qualified advisor or use Kashia HR for up-to-date calculations.
Ready to hire in Nigeria?
Book a call with our team or explore Kashia Hire and Kashia HR to see how we handle contracts, payroll, and compliance for you.