Nigeria Employer of Record (EOR) & Payroll
Nigeria Employer of Record & Payroll
Africa Deployments Nigeria offers our clients Employer of Record solutions in Nigeria covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Nigeria for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on the best Human Resource (HR) practices when setting up employees locally in Nigeria Employer of Record. ADS currently works with a number of NGO’s & Development Agencies in Nigeria
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
In addition to our services, we can offer you employees in Nigeria, Medical, Disability, Life, and Workmen’s Compensation insurance.
Nigeria, an African country on the Gulf of Guinea, has many natural landmarks and wildlife reserves. Protected areas such as Cross River National Park and Yankari National Park have waterfalls, dense rainforests, savanna, and rare primate habitats. One of the most recognisable sites is Zuma Rock, a 725m-tall monolith outside the capital of Abuja that’s pictured on the national currency.
What is the main language spoken in Nigeria:
In Nigeria the official language is English, but it is spoken less frequently in rural areas. Other major languages spoken include: Hausa, Yoruba, Igbo, Fulfulde, Ibibio, Kanuri, and Tiv.
What type of employment contracts can you offer in Nigeria:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 3 – 6 months [maximum]
Standard working hours: Number Overtime to be paid?
In Nigeria, the standard working hours are typically 8 hours per day or 40 hours per week. Any hours worked beyond the standard working hours are considered overtime. The overtime rate is usually higher than the regular hourly rate and can vary depending on factors such as the day of the week (including weekends and public holidays) and the duration of the overtime work.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
National Pension Scheme |
8% of Monthly Emolument |
N/A (based on salary) |
|
Employee Compensation Scheme |
N/A (automatically deducted) |
N/A |
|
National Housing Fund |
2.5% of Monthly Income |
N/A (based on income) |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
National Pension Scheme |
10% of Monthly Emolument |
N/A (based on salary) |
|
Employee Compensation Scheme |
Varies by industry |
N/A |
|
National Housing Fund |
2.5% of Monthly Income |
N/A (based on income) |
Social
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Employee Compensation Scheme |
N/A (automatically deducted) |
N/A |
|
National Housing Fund |
N/A |
N/A |
|
National Pension Scheme |
N/A |
N/A |
What is the Maternity and Paternity policy within Nigeria:
Maternal leave:
- In most cases:
- Paid at 50% for employees [part employer part insurance]
- 12 weeks [usually majority of the weeks to be post birth]
Paternal leave:
- Paid paternity leave is available in the following states of Nigeria:
- Lagos – 2 weeks
- Enugu – 3 weeks
What type of leave is allowed in Nigeria:
As per the local statutory laws in Nigeria the following types of leave are recognized:
Medical Leave [employees]:
- Generally up to 12 days paid sick leave per year
- Extended medical leave for chronic illnesses
- Certified health certificate to be provided
Annual Leave [employees]:
- After 1 year of employment in an organization – 6 days paid leave per year [± .5 = ½ day paid leave per month]
- Accrued leave can be negotiated within the employment contract
Do I need to pay a mandatory bonus annually OR is it discretionary in Nigeria:
There is no statutory requirement to pay an annual or other bonus in Nigeria, but performance-based and annual bonuses are customary.
What Gratuity / Severance payments do you need to provide for Nigeria:
Before employing your employees in Nigeria, it is always advisable to understand your risk from an employment perspective, especially as Nigeria has at-will employment.
Unfortunately, nothing is guaranteed and in the event that you need to terminate for a valid reason, we always suggest that you know what you are in for in the unlikely event you need to terminate.
Below are the types of terminations in Nigeria:
Notice period:
- Calculated based on length of service and employment type
- 30 days is standard, or payment-in-lieu
- Prior written notice required
Severance [economic reasons]:
- There is no statutory severance pay in Nigeria
Mandatory Probation period of Nigeria?
In Nigeria, there is no set mandatory probation period for employees, and it is determined by the employer based on their discretion and the terms of the employment contract.
What are the Corporate and VAT / Sales tax rates in Nigeria:
Corporate Tax Rates: 30% [in general]
VAT / Sales Tax Rates: 7.5% [on most goods and services]
Public Holidays in Nigeria:
- January 1 - New Year's Day
- January 2 - New Year's Day
- April 7 - Good Friday
- April 21 - Eid-al-Fitr
- April 22 - Eid-al-Fitr
- May 1 - Worker's Day
- May 27 - Children's Day
- June 12 - Democracy Day
- June 28 - Eid-al-Adha
- June 29 - Eid-al-Adha
- September 27 - Prophet's Birthday
- Oct 1 - Independence Day
- Oct 2 - Independence Day
- December 22 - Sambisa Memorial Day
- December 25 - Christmas Day
- December 26 - Boxing Day Holiday
What Industries we support in Nigeria:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
What Double Tax Treaties are in place in Nigeria:
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
