According to Pebl's employment agreement template, when is the salary due in Nigeria?

Per our employment agreement template, salaries in Nigeria are paid on or about the last day of each month.

What date does the law specify salary must be paid in Nigeria?

In Nigeria, salary payment becomes due and payable at the end of each period for which the employment agreement is expressed to subsist. This means payment can be made daily, weekly, or in another specified period. Statutorily, salary payments must be made at least once a month.

How is salary calculated and what components does it consist of in Nigeria?

In Nigeria, the salary structure for employees includes several compulsory components. These components are:

• Basic salary
• Housing allowance
• Transport allowance
• Meal allowance
• Utilities allowance

Additional indirect components may also be included as part of the employee's overall compensation package. The gross salary in Nigeria is the total sum of all these components.

Is there a legal obligation to pay salaries in the same month in Nigeria?

Salaries in Nigeria must be paid based on the agreed timelines specified in the employee's employment agreement. Legally, salaries must be paid periodically, with the maximum period being monthly. Therefore, salaries can be paid daily, weekly, biweekly, or monthly, depending on the terms outlined in the employment agreement.

How many salary payments are made per year in Nigeria?

In Nigeria, employees typically receive salary payments 12 times a year if salaries are distributed on a monthly basis. Additionally, some employers provide a 13th-month bonus in December, although this is not mandatory unless specified in the employment agreement.

Is salary payment monthly and is payment standard at the end of the month in Nigeria?

Salary in Nigeria is paid monthly and usually on or before the last working day of each month.

Should the employment agreement specify salary in monthly or annual amounts in Nigeria?

The employment agreement template in Nigeria specifies the monthly gross salary.

What tax and social security obligations do employees have in Nigeria?

In Nigeria, employees have several tax and social security obligations:

• Personal Income Tax (PIT): Employees must pay this tax, which employers deduct and remit at graduated rates ranging from 7% to 24%.

• National Housing Fund (NHF): Employees can optionally contribute 2.5% of their salary to this fund.

Employers, on the other hand, are responsible for certain obligations such as contributing to the Industrial Training Fund (ITF) if they have more than five employees, and to the Employee Compensation Scheme (NSITF) for providing employee workplace insurance coverage. They must also provide both medical insurance and group life insurance coverage for their employees.

What is the minimum wage information in Nigeria?

Effective July 29, 2024, the minimum wage in Nigeria is NGN 70,000 as stipulated under the National Minimum Wage Amendment Act.