Beyond gross pay, employers must contribute 10% of pensionable pay (basic + housing + transport) go pension, 10% of basic salary go NHIS, 1% of annual gross pay go NSITF, and 1% of annual gross pay go ITF — on top of di employee own 8%/5% contribution dem. Together dis one dem make up di total statutory employer cost wey di Employer Cost calculator dey show.
NHF no dey part of dis total — na employee-only contribution, and no employer-side NHF rate get confirmed source to add here.
Pension na compulsory under di Pension Reform Act 2014 for employers wey get 15 or more staff (e dey voluntary below dat); NHIS na compulsory for employers wey get 5 or more staff for di organized private-sector rate. Both dey apply regardless of company size once dem reach dose thresholds.
Yes, both dey included. NSITF apply to every employer, no headcount or turnover threshold, so dem add am unconditionally. ITF too dem calculate unconditionally at 1% of annual payroll — for practice ITF only apply to employers wey get 5+ staff or ₦50 million+ annual turnover, but dis calculator no dey collect employee-count or turnover input to gate on top, so if your business dey below both threshold dem, remove di ITF line from your total.
Yes, e free, no account dey needed. Di calculations dey run for your own phone or computer, dem no dey send am go any server.
No — na just guide, e no be tax advice.
E come from di Nigeria Tax Act 2025 — see full citations →
Curious what a hire actually costs, beyond gross pay? Read the guide.