The rules in force from 1 January 2026, as shown on the Settings page. Rates are held as dated rules; if the law changes, the new rule applies from its effective date and earlier periods keep the old one.
| Item | Rule | Source |
|---|---|---|
| PAYE bands (annual chargeable income) | 0% on the first ₦800,000; 15% on the next ₦2,200,000; 18% on the next ₦9,000,000; 21% on the next ₦13,000,000; 23% on the next ₦25,000,000; 25% above ₦50,000,000 | Nigeria Tax Act 2025, from 1 January 2026 |
| Minimum-wage exemption | No PAYE where projected annual income is at or below the national minimum wage (₦70,000 a month) | NTA 2025; National Minimum Wage Act 2024 |
| Rent relief | 20% of annual rent, capped at ₦500,000, with the employee's declaration and evidence | NTA 2025 (replaces the Consolidated Relief Allowance) |
| Accommodation benefit | Included in income up to 20% of gross employment income | NTA 2025 |
| Loss-of-office compensation | Exempt up to ₦50,000,000 | NTA 2025 |
| Gratuity | Taxable | NTA 2025 |
| Pension | Employee 8%, employer 10% of Basic + Housing + Transport (+ components marked pensionable); mandatory at 15+ employees; for daily-rated workers only where switched on | Pension Reform Act 2014 |
| NHF | 2.5% of Basic; compulsory in the public sector, voluntary (opt-in with a recorded election) in the private sector; daily-rated workers only with their own election | NHF Act, as amended |
| NSITF | 1% of monthly regular payroll (excluding bonuses and overtime), paid by the employer; for daily-rated workers only where switched on | Employee Compensation Act 2010 |
| ITF | 1% of annual payroll for employers with 5+ employees or ₦50m+ turnover; due 1 April of the following year | ITF Act |
| Health insurance | Mandatory at 5+ employees | NHIA Act 2022 |
| Group life | Cover of 3 × annual total emoluments at 3+ employees | Pension Reform Act 2014 |
| Deductions limit | Deductions other than PAYE, pension and NHF limited to one-third of the month's wages (configurable) | Labour Act s.5 |
| Leave (minimums) | Annual 6 working days after 12 months; sick 12 days; maternity 12 weeks at 50% pay with 6 months' service | Labour Act ss.16, 18, 54 |
| State development levy | ₦100–₦500 per employee per year, as set by the state | State law |