Nigeria is Africa's largest market, with a young, English-speaking, tech-forward workforce. All-in employer cost runs around 1.1x the gross salary. Here is what to know before your first Nigerian hire.
Employment runs under the Labour Act plus pension and industrial-training statutes, with written contracts and mandatory pension enrolment for larger employers. A 13th-month payment is a common custom.
The national minimum wage is under review from its prior level of NGN 30,000 per month*, so the figure is changing.
Monthly payroll, with a 13th-month payment common by contract in many companies.
Around 11 public-holiday days a year, including national and religious dates.
Written terms are standard. A probationary period is common and set by contract.
Employer costs are moderate, around 10%, driven by the pension contribution plus small employee-compensation and training levies.
Pension enrolment applies to employers above a size threshold, and the training levy applies above a turnover threshold, so obligations depend on scale.
Employees pay PAYE income tax under the state tax authorities plus their pension share, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
A statutory minimum of six working days a year, though contracts commonly grant substantially more.
At least 12 weeks of maternity leave under the Labour Act, with pay set by law or policy.
Up to 12 working days of paid sick leave a year with a medical certificate.
Additional leave is typically set by contract or company policy.
Notice runs from a day up to a month by tenure under the Labour Act, or pay in lieu.
There is no general statutory severance; redundancy terms are set by contract or collective agreement.
Common and set by contract, with simpler termination during the period.
A contractor working like an employee can be reclassified, with back pension and entitlements.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Nigerian employment contract, payroll, and pension, handled. One invoice, flat $399 per month.