Nigeria Payroll Compliance at a Glance
What We Handle
Every component of Nigeria payroll compliance
State PAYE Computation & SIRS Remittance
Nigerian PAYE is state-administered. Lagos-based employees are taxed by LIRS. Other states have their own SIRS. We manage PAYE for all Nigerian states where clients have employees.
- Consolidated Relief Allowance (CRA) applied: higher of NGN 200,000 or 1% of gross + 20% of gross
- 6-band progressive tax: 7%, 11%, 15%, 19%, 21%, 24%
- Minimum tax (1% of gross) applied where applicable
- State-specific SIRS filings: LIRS, Rivers SIRS, Abuja (FCTA), and all others
PenCom Pension Contributions
Nigeria's Contributory Pension Scheme requires 10% employer + 8% employee = 18% of gross emolument, remitted to individual Retirement Savings Accounts (RSA) within 7 working days of salary.
- 10% employer pension on gross emolument (basic + housing + transport)
- 8% employee pension deducted and remitted concurrently
- RSA contributions sent to employee's chosen Pension Fund Administrator (PFA)
- 2% penalty on late remittances — we ensure 7-day compliance every cycle
Industrial Training Fund (ITF) Levy
Employers with 5+ employees or turnover above the threshold pay 1% of annual payroll to the ITF. Two Max Group calculates, registers, and remits ITF on behalf of the employer.
- ITF registration and annual assessment management
- 1% of total annual payroll remitted to the Industrial Training Fund
- Employer ITF exemption assessment (if applicable)
- ITF compliance certificate obtained annually
National Housing Fund (NHF)
Employees earning NGN 3,000/month or above contribute 2.5% of basic salary to the Federal Mortgage Bank of Nigeria. Employers deduct and remit.
- 2.5% of employee basic salary deducted monthly
- Remitted to the Federal Mortgage Bank of Nigeria
- NHF registration managed by Two Max Group
- Monthly remittance receipts maintained for audit
NSITF (Employees' Compensation)
Employers pay 1% of gross monthly salary to NSITF (Nigeria Social Insurance Trust Fund) under the Employees' Compensation Act 2010.
- 1% of gross salary contributed by employer each month
- NSITF registration and contribution schedule managed
- Protects employees against work-related injury and disability
- NSITF compliance certificate maintained
Multi-State Payroll Management
Nigeria's state-level PAYE system means companies with employees across multiple states face different SIRS requirements. We manage multi-state compliance seamlessly.
- LIRS (Lagos), FCT-IRS (Abuja), Rivers, Oyo, and all other state filings
- State-specific tax forms and payment channels managed
- Employee relocation and state transfer handled compliantly
- Consolidated NGN payroll across all Nigerian states
Why Two Max Group
The standard that protects your business
All 5 Nigerian Statutory Bodies Covered
Nigeria's payroll requires compliance with SIRS/LIRS (PAYE), PenCom (pension), ITF, NHF, and NSITF. Missing any one exposes the employer to significant penalty. We cover all five without exception.
State-Level PAYE Expertise
Nigeria has 37 different PAYE jurisdictions (36 states + FCT). LIRS (Lagos) and FCT-IRS (Abuja) have different filing deadlines and procedures. We manage all of them.
PenCom 7-Day Compliance
The Pension Reform Act 2014 requires pension remittance within 7 working days of salary payment. Our payroll cycle is designed to meet this deadline every month — the 2% late penalty never applies.
ITF Compliance Certificate
The ITF compliance certificate is increasingly required for government and large corporate contracts in Nigeria. We obtain and maintain it for every employer client.
Labour Act and Multi-Law Integration
Nigerian payroll overlaps with the Labour Act, the Employees' Compensation Act, the Personal Income Tax Act (PITA), and the Pension Reform Act. Our team applies all simultaneously.
72-Hour Activation
Payroll live within 72 hours. No CAC entity needed.
Common Questions
Nigeria Payroll FAQs
Ready to run compliant payroll in Nigeria?
Payroll live within 48 hours. No Nigeria entity needed.