Nigeria employer statutory cost calculator

How this calculator works

A Nigerian payroll costs more than the salaries on it. This calculator adds up the employer-only statutory costs:

• Employer pension: 10% of basic, housing and transport, for employers with three or more staff (Pension Reform Act 2014).
• NSITF: 1% of total monthly payroll, for every employer, under the Employee's Compensation Act 2010.
• ITF: 1% of total annual payroll, once a year, for employers with five or more staff or turnover of ₦50 million or more.
• Group life insurance: a premium set by your insurer, for cover of at least three times each employee's annual emolument.

Employee deductions such as the 8% pension, NHF and PAYE aren't employer costs, so they're not included here. ReadNHF, NSITF, ITF and NHIA explained for more on each scheme.

Questions we often hear

Why set ITF aside every month if it's paid once a year?

Because the April bill is a year's worth at once. Setting aside a twelfth each month keeps it out of the way of cash flow.

Is health insurance (NHIA) included?

No. What it costs depends on the plan and how you share it with staff, so add your HMO's premium separately.