Basic information
Capital: Abuja
Time zone: GMT+1
Languages: English
Currency code: NGN
Human Resources at a Glance
Contract Terms
Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.
A contract must include:
- Name
- Start date
- Duties and responsibilities
- Hours of work
- Compensation and other benefits
- Termination conditions
Guidelines Regarding Probation Period/Trial Period
There are no provisions for probationary periods under the Labor Act but such periods can be stipulated under the employment contract.
Regulations and Rules Regarding Working Hours
Overtime payment is not mandatory. Hours outside of standard work hours are considered overtime. There are no maximum working hours. There is no rate of pay for overtime specified by law, rather it is based on the employer’s discretion.
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
Minimum Wage Requirements
The minimum wage is NGN 65,000 per month.
Termination
Grounds
Terminations in Nigeria can be complex. There is no at-will termination in Nigeria for employers and termination must be done for just cause. Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- By the expiration of the contract
- Unilaterally by the employer based on:
- Objective grounds
- Disciplinary dismissal
- Criminal offense
- Performance due to unsuitability for the job
- Permanent incapacity due to accident or ill-health
Notice Period
In Nigeria, there is no statutory requirement to provide a notice period. However, best practice includes 30 days notice for non-senior employees and a minimum of 30 days for senior employees.
In cases regarding allegations of misconduct, the employer is not required to provide notice.
Payment & leave Compensation & Holidays
SalaryPayment
Payment of salaries should be at least monthly but it is acceptable for it to be in shorter intervals (bi-weekly or weekly).
Payslip
The employer must provide the employee with a payslip for each pay cycle. These can be provided online.
Annual Leave
Full-time employees are entitled to 6 days of paid time off (PTO) a year. PTO accrues monthly, 0.5 days per month. Employees are eligible for annual leave after 12 months of work.
Full-time employees under the age of 16 are entitled to 12 days of paid time off (PTO) a year.
Sick Leave
Employees are entitled to paid sick leave for up to 12 days. The leave can be taken in the case of illnesses certified by a registered medical practitioner. During this leave, employees are entitled to 100% of their base salary, and the employer is responsible for this pay.
Maternity & Parental Leave
Pregnant employees who have worked for six consecutive months or more are entitled to 12 weeks of paid leave. six weeks must be taken before the child’s birth, and six weeks must be taken after the child’s birth. The employee will receive a minimum of 50% of the salary during this period, and the employer will be responsible for this pay.
In Nigeria, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.
Tax and Social Security Information
Personal Income Tax
The individual income tax ranges from 7% to 24%. Income tax is calculated based on income tax bands.
| Gross Annual Income (NGN) | Tax Rate (%) |
| Up to 300,000 | 7% |
| Up to 600,000 | 11% |
| Up to 1,110,000 | 15% |
| Up to 1,600,000 | 19% |
| Up to 3,200,000 | 21% |
| Over 3,200,000 | 24% |
Social Security
Social security contributions in Nigeria cover benefits for retirement, disability, sickness and maternity. Employees contribute a minimum of 5% of their salary, while employers must contribute around 10% to the various benefit schemes.
The contributions payable in respect of each month are due on the last day of the month concerned.
| Social Security Contributions | Employer Rate (%) | Employee Rate (%) |
| Pension Contribution Scheme (PENCOM) | 10.0 | 8.0 |
| National Housing Fund (NHF) | 2.5%of the monthly basic salary | |
| Industrial Training Fund (ITF)* | 1.0%(of total payroll cost) | |
| Nigeria Social Insurance Trust Fund (NSITF) | 1.0%(of total salary) | |
| Life Insurance | Varies depending on annual salary, gender, age |
Public Holidays 2024
| Occasion | Date |
| New Year’s Day | 1.1 |
| Good Friday | 3.29 |
| Easter Monday | 4.1 |
| ld el Fitri | 4.1 |
| Id el Fitri Holiday | 4.11 |
| Labour Day | 5.1 |
| Democracy Day | 6.12 |
| ld el Kabi | 6.16 |
| ld el Kabir Holiday | 6.17 |
| Id el Maulud | 9.15 |
| National Day | 10.1 |
| Christmas Day | 12.25 |
| Boxing Day | 12.26 |
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