Nigeria Salary Calculator
This salary calculator helps you calculate net salary (take-home) factoring your personal income tax (PAYE), Pensions and NHIS.
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Salary Structure
In Nigeria, a typical salary structure consists of:
• Gross Salary: The total amount an employer promises to pay an employee (before any deductions).
• Basic Salary: A core component of gross salary. Often forms the basis for statutory contributions like pensions and National Housing Fund.
• Allowances: These may include housing allowance, transport allowance, leave allowance, and other discretionary benefits.
• Statutory Deductions: Deductions mandated by law, including pension contributions, NHF contributions, and PAYE (tax).
• Net Salary / Take-home Pay: The final amount credited to the employee after all deductions have been made.
Employers often design a salary structure where the basic component is a certain percentage of the gross salary.
Our calculator defines the tax bands and rates (per the Personal Income Tax (Amendment) Act)
First ₦300K
Next ₦300K
Next ₦500K
Next ₦500K
Next ₦1.6M
Above ₦3.2M
Why you should know your salary breakdown
Financial Planning
Awareness of your net salary helps in effective budget planning, savings, and salary negotiations.Understanding Statutory Obligations
Being conversant with pension, NHF, and tax helps you appreciate the value of these schemes and ensures you proactively manage your compliance.Career Negotiations and Comparisons
Breaking down salary components (basic, allowances, deductions) aids in fair comparisons between offers from different employers, ensuring you make informed career decisions.Avoiding Legal Complications
Non-compliance with tax, pension, or NHF deductions can result in legal issues for both employees and employers. As an employee, you want to ensure your employer is properly remitting your contributions and taxes.Long-term Benefits:
Pension savings, NHF contributions, and accurate tax filings build a safety for you in case of emergencies, retirement and other legal implications.
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