Hiring in Nigeria through an Employer of Record
A Nigerian employer pays the larger share of the contributory pension, plus the employee compensation scheme and, for bigger firms, a training levy.
On top of salary, the employer pays
- 10% Contributory pension, employer minimum
- 1% Employee compensation scheme (NSITF)
- 1% Industrial training levy
What the employer pays on top of salary in Nigeria
- Contributory pension, employer minimum: 10 percent of monthly basic, housing and transport pay.
- Employee compensation scheme (NSITF): 1 percent of total monthly payroll.
- Industrial training levy: 1 percent of annual payroll, firms with five or more staff.
The pension is worked out on basic, housing and transport pay rather than total pay. The training levy applies only above a size threshold. The housing fund contribution is the employee's.
Yearly cost of one employee in Nigeria, by vendor
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM $599, Deel $599, G-P $599, Multiplier $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst $199, Remote $699, Skuad $199. Not published: Rippling.
Where these numbers come from
- Contributory pension, employer minimum on pencom.gov.ng read
- Employee compensation scheme (NSITF) on nsitf.gov.ng read
- Industrial training levy on itf.gov.ng read
- Each vendor's own pricing page, linked from its name above.