Nigeria salary calculator
Enter a gross monthly salary in Nigerian nairas (NGN) to see take-home pay, income tax, employee contributions and the total cost to the employer. Uses the same tax bands and contribution rates Payroll Africa uses to run payroll in Nigeria.
Take-home pay
NGN 384,450.00
PAYE
NGN 63,050.00
12.6% of gross
Cost to employer
NGN 560,000.00
| Item | Employee | Employer |
|---|---|---|
| Gross salary | NGN 500,000.00 | — |
| Contributory Pension Scheme (PenCom RSA)(deducted before tax) | − NGN 40,000.00 | NGN 50,000.00 |
| National Housing Fund(deducted before tax) | − NGN 12,500.00 | — |
| NSITF Employees Compensation Scheme | — | NGN 5,000.00 |
| Industrial Training Fund | — | NGN 5,000.00 |
| PAYE | − NGN 63,050.00 | — |
| Net pay | NGN 384,450.00 | NGN 560,000.00 |
Monthly estimate for a resident employee with no other reliefs, benefits or deductions, using the 2026 tax year configured in Payroll Africa. Confirm with the Nigeria Revenue Service and State Internal Revenue Services for your situation.
Nigeria income tax bands (2026)
| Monthly taxable income (NGN) | Rate |
|---|---|
| NGN 0.00 – NGN 66,666.67 | 0% |
| NGN 66,666.67 – NGN 250,000.00 | 15% |
| NGN 250,000.00 – NGN 1,000,000.00 | 18% |
| NGN 1,000,000.00 – NGN 2,083,333.33 | 21% |
| NGN 2,083,333.33 – NGN 4,166,666.67 | 23% |
| Above NGN 4,166,666.67 | 25% |
Each rate applies only to the part of income inside its band.
Contributions in Nigeria
| Contribution | Employee | Employer | Based on |
|---|---|---|---|
| Contributory Pension Scheme (PenCom RSA) | 8% | 10% | Gross salary; deducted before tax |
| National Housing Fund | 2.5% | — | Basic salary; deducted before tax |
| NSITF Employees Compensation Scheme | — | 1% | Gross salary |
| Industrial Training Fund | — | 1% | Gross salary |
Frequently asked questions
How is PAYE calculated in Nigeria?
Payroll Africa takes the gross monthly salary, subtracts Contributory Pension Scheme (PenCom RSA), National Housing Fund, applies the 2026 tax bands shown on this page.
Which deductions come off a salary in Nigeria?
Besides income tax, the employee pays Contributory Pension Scheme (PenCom RSA) (8%), National Housing Fund (2.5%). Employer-only costs are Contributory Pension Scheme (PenCom RSA) (10%), NSITF Employees Compensation Scheme (1%), Industrial Training Fund (1%).
Is this calculator accurate for every employee?
It is an estimate for a resident employee paid monthly with no other reliefs, benefits or voluntary deductions. Nigeria Tax Act 2025 PAYE bands effective 1 Jan 2026; Consolidated Relief Allowance falls away. Rent relief up to NGN 200,000/yr not modelled. Confirm your situation with the Nigeria Revenue Service and State Internal Revenue Services.
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