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Work out the employee's 8% and employer's 10% pension on basic, housing and transport, plus the minimum group life cover under the PRA 2014.
Rates checked against official sources on 17 October 2026
Paid into the retirement account each month
₦81,000.00
Per year ₦972,000.00
Employer rate used: 10%of pensionable pay.
Minimum group life cover
₦16,200,000.00
Three times annual pensionable pay. The premium is set by your insurer.
An estimate to help you plan, based on the rates shown. It isn't tax or legal advice, and individual circumstances (other reliefs, other income) can change the result.
Under the Pension Reform Act 2014, the employee contributes 8% and the employer10% of the employee's basic salary, housing allowance and transport allowance. That combination is often called BHT. Other allowances, bonuses and overtime aren't pensionable.
An employer can choose to carry the whole cost, but then must contribute at least 20% of BHT with nothing deducted from the employee. Both contributions go to the employee's Retirement Savings Account with their Pension Fund Administrator, within seven working days of paying salaries.
The Act also requires a group life insurance policy for each employee, with cover of at least three times their annual total emolument. Read our employer guide to the PRA 2014for the details.
Public sector employers, and private sector employers with three or more employees.
Yes. It comes off income before PAYE under the Nigeria Tax Act 2025. Try theNigeria PAYE calculator to see the effect.
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