Gross pay is only part of what a new hire costs an employer in Nigeria — several statutory contributions sit on top of it, some compulsory only above a headcount threshold, some unconditional.
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.
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.
Cost out a real hire, and see their PAYE liability once you know what they take home.
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.
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.
No — for guidance only, not tax advice.