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SALARY PAYMENT IN Naira (NGN), Dollar (US$), Euro (€)
CONTRACT LANGUAGE English
PAYROLL TAX 11%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
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Hire and pay talents
with Horizons in
180+ countries
Horizons ensures day-to-day guidance to help your business navigate Nigerian labor laws and regulations.
As the Nigeria Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Nigerian Tax Office.
Partnering with our Nigeria PEO is the quickest and most cost-effective way to enter the Nigerian market.
| PEO Platform Hire in Nigeria, and pay employees through our platform or app. | PEO Cost Our Nigeria PEO solution is the most affordable on the market. | Time-to-hire Fast onboarding in Nigeria, hire in as little as 24 hours. |
| Contracts We draft labor contracts compliant with Nigerian labor law. | Local Benefits We administer all mandatory benefits and contributions in Nigeria. | 180+ Countries It doesn’t stop with Nigeria — we are an international PEO |
In Nigeria, it is a legal requirement to provide all employees with a formal contract of employment. Contracts should have all details of the employment, such as wage/salary, sick leave, and termination/severance terms. The official language of Nigeria is English, so contracts should generally be written in English, and you should reference the local currency of Nigerian naira.
By partnering with our Nigeria PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
| Probationary period | 3 – 6 months |
| Termination notice period | 30 days (standard), or payment-in-lieu |
| Severance | Not required |
| Probationary period | 3 – 6 months |
| Termination notice period | 30 days (standard), or payment-in-lieu |
| Severance | Not required |
While there is no nationally regulated limit for working hours, the general working week for most jobs is around 40 hours. All work outside the standard hours should be paid at overtime rates. Both the maximum working hours and overtime pay rates may be agreed upon in individual employment contracts or collective bargaining agreements (CBAs), so can vary from industry to industry and role to role.
Quick, compliant hiring in 24 hours—no subsidiary required.
The following holidays are generally given to workers in Nigeria as paid leave every year. The following is an expanded list of holidays, some of which are only widely celebrated in certain regions:
| Date | Holiday name |
|---|---|
| 1 Jan, 2023 | New Year’s Day |
| 2 Jan, 2023 | Day off for New Year’s Day |
| 7 Apr, 2023 | Good Friday |
| 10 Apr, 2023 | Easter Monday |
| 22 Apr, 2023 | Id el Fitr (Tentative Date) |
| 23 Apr, 2023 | Id el Fitr holiday (Tentative Date) |
| 1 May, 2023 | Workers’ Day |
| 12 Jun, 2023 | Democracy Day |
| 29 Jun, 2023 | Id el Kabir (Tentative Date) |
| 30 Jun, 2023 | Id el Kabir additional holiday (Tentative Date) |
| 27 Sep, 2023 | Id el Maulud (Tentative Date) |
| 1 Oct, 2023 | National Day |
| 25 Dec, 2023 | Christmas Day |
| 26 Dec, 2023 | Boxing Day |
Employees in Nigeria who have worked for at least 12 months are legally entitled to at least six days of paid annual leave. Some employers may choose to offer more, and there is a higher allowance of 12 days for workers under the age of 16.
Employees in Nigeria are entitled to at least 12 days of paid sick leave each year. Some employers may choose to offer more as part of their benefits packages.
Female employees in Nigeria are entitled to 12 week of paid maternity leave, with six weeks able to be taken before the birth of their child. In general, fathers are not entitled to paternity leave, but Enugu (three weeks) and Lagos (two weeks) regions do offer an allowance.
In Nigeria, employers and employees alike can end employment contracts at any time, similar to the ‘at-will’ system in the US. However, in practice, you should always provide a notice period and allow for some negotiations.
Employees are not legally entitled to severance payments in Nigeria.
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Nigeria PEO can mitigate risk for foreign companies and provide guidance through this process.
Employers and employees in Nigeria must contribute a certain amount towards pension schemes, with employers contributing at least 10% and employees contributing at least 8%. Most employees (anyone earning over 3,0000 nairas per year) must also pay 2.5% to the National Housing Fund.
Income tax in Nigeria follows a progressive model, with rates ranging from 7% to 24% depending on income level.
For most companies, the corporate tax rate in Nigeria is 30%.
As of 2020, the national minimum wage in Nigeria is 30,000 naira per month (based on full-time work of 40 hours per week).
| Minimum Wage Country Comparison Chart | (Per month in USD) |
| Switzerland (Geneva) | $4,000 |
| Italy | $2,255 |
| Australia | $1996 |
| Algeria | $156 |
| Uzbekistan | $22 |
Benefits packages in Nigeria may include things like health insurance, pension contributions, a company car, and so on. Establishing and running a benefits system for your Nigerian employees can be difficult as an independent organization, and you will need to be familiar with the country’s customs and labor laws, which can differ from state to state. The process can take unexpectedly long to set up, so it may be necessary to get professional advice.
With Horizons, you get quick service, transparent pricing, and expert support.
A Nigeria PEO and a Nigeria EOR are two types of companies which specialize in providing human resources services to businesses in Nigeria.
The main difference between a Nigeria PEO and a Nigeria EOR is in the scope of their services.
Nigeria PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Nigeria PEO is essentially outsourcing your HR duties in Nigeria.
Nigeria EORs actually take over as the legal employer of your employees based abroad. Nigeria EORs become responsible for labor compliance for your employees in Nigeria.
At Horizons, we offer both PEO and EOR services in Nigeria. Get in touch now and let us know what service you are seeking.
Yes – we operate with a 100% owned subsidiary. Unlike other providers in the market, Horizons do not subcontract to 3rd parties. This allows us to ensure our best-in-class service approach.
A PEO in Nigeria can feasibly hire both local and foreign nationals to work in Nigeria.
However, the ability of Horizons to sponsor your foreign national employee in Nigeria may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Nigeria PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Nigeria.
It is possible to get a work visa in Nigeria. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Nigeria are limited, however—get started today to secure your employees’ visa spot.
Of course! The NSITF (Nigeria Social Insurance Trust Fund) certificate is a prerequisite to be able to run a compliant local payroll and to declare social insurance payments. Horizons’ entity is full registered with all statutory government offices.
That’s not a problem. Regulations surrounding payroll in Nigeria allow Horizons to be able to arrange net payment to employees in multiple currencies such as US Dollar or Euro.
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Austin, Texas 78704
+1 (737) 265-6065
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