Employer cost calculator: Nigeria 2027
What an employee really costs in Nigeria: gross salary plus mandatory employer contributions. A ₦300,000 monthly salary costs about ₦333,000 (1.11× gross).
Employer cost by salary
Employer pension 10% (Pension Reform Act 2014) and NSITF 1%.
| Gross per month | ₦150,000 | ₦300,000 | ₦500,000 | ₦1,000,000 |
|---|---|---|---|---|
| Pension | ₦15,000 | ₦30,000 | ₦50,000 | ₦100,000 |
| NSITF | ₦1,500 | ₦3,000 | ₦5,000 | ₦10,000 |
| Total employer cost | ₦166,500 | ₦333,000 | ₦555,000 | ₦1,110,000 |
| Cost multiplier | 1.110× | 1.110× | 1.110× | 1.110× |
| Employee take-home | ₦127,300 | ₦243,820 | ₦394,700 | ₦771,900 |
ITF (1% of payroll) applies to employers with 5+ staff or turnover of NGN 50m+, not included.
Employee side: Nigeria take-home pay calculator.
GET /v1/employer-cost?country=ng&gross=… — free API key, 1,000 calls/month.Questions
How much does it cost to employ someone in Nigeria?
On top of gross pay, employers in Nigeria pay employer pension 10% (Pension Reform Act 2014) and NSITF 1%. For a ₦300,000 monthly salary the total is about ₦333,000, or 1.11 times gross pay.
Does this include benefits or an EOR fee?
No. It covers statutory employer contributions and mandatory accruals only. Private health insurance, allowances, equipment and Employer of Record fees come on top.
Sources
- https://taxsummaries.pwc.com/nigeria/individual/taxes-on-personal-income
- https://taxsummaries.pwc.com/nigeria/individual/deductions
Updated 2026-11-13. Estimates for planning only, not tax advice.