Beyond gross pay, employers must contribute 10% of pensionable pay (basic + housing + transport) to pension, 10% of basic salary to NHIS, 1% of annual gross pay to NSITF, and 1% of annual gross pay to ITF — on top of the employee's own 8%/5% contributions. Together these make up the total statutory employer cost the Employer Cost calculator shows.
NHF isn't part of this total — it's an employee-only contribution, and no employer-side NHF rate has a confirmed source to add here.
Pension is compulsory under the Pension Reform Act 2014 for employers with 15 or more staff (voluntary below that); NHIS is compulsory for employers with 5 or more staff at the organized private-sector rate. Both apply regardless of company size once those thresholds are met.
Yes, both are included. NSITF applies to every employer with no headcount or turnover threshold, so it's added unconditionally. ITF is also calculated unconditionally at 1% of annual payroll — in practice ITF only applies to employers with 5+ staff or ₦50 million+ annual turnover, but this calculator doesn't collect an employee-count or turnover input to gate on, so if your business is below both thresholds, subtract the ITF line from your total.
Yes, it's free with no account needed. Calculations run on your device and are never sent to a server.
No — for guidance only, not tax advice.
Sourced from the Nigeria Tax Act 2025 — see full citations →
Curious what a hire actually costs, beyond gross pay? Read the guide.