Nigeria Payroll Module
Overview
The Nigeria Payroll Module provides end-to-end payroll processing, tax compliance, and statutory contribution management for Nigerian employers. It supports both the legacy PITA/CRA tax system (pre-2026) and the new Nigeria Tax Act (NTA) 2025 system effective from 1 January 2026. The module handles PAYE calculation, pension contributions, NHF, NSITF/ITF, loan management, salary levels, promotions, and digital filing to the Nigeria Revenue Service (NRS) via TaxPro Max.
- Tax year: January -- December
- Currency: Nigerian Naira (NGN / ₦)
- Regulatory authority: NRS (Nigeria Revenue Service), replacing FIRS from 2026
- Legislative basis: Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Pension Reform Act 2014
Accessing Nigeria Payroll
Navigate to Payroll from the main sidebar. All Nigeria-specific features appear when your company's country is set to Nigeria.
Tax System
Nigeria operates two tax systems depending on the tax year.
Pre-2026: PITA/CRA System
The Personal Income Tax Act (PITA) applied progressive bands with a Consolidated Relief Allowance (CRA).
Progressive Tax Bands (Pre-2026):
| Annual Taxable Income (NGN) | Rate |
|---|---|
| First 300,000 | 7% |
| Next 300,000 | 11% |
| Next 500,000 | 15% |
| Next 500,000 | 19% |
| Next 1,600,000 | 21% |
| Over 3,200,000 | 24% |
2026+: NTA System
The Nigeria Tax Act 2025 introduces a tax-free threshold and revised bands.
Progressive Tax Bands (NTA 2025):
| Annual Taxable Income (NGN) | Monthly Equivalent (NGN) | Rate |
|---|---|---|
| First 800,000 | First 66,667 | 0% |
| 800,001 -- 3,000,000 (next 2,200,000) | Next 183,333 | 15% |
| 3,000,001 -- 12,000,000 (next 9,000,000) | Next 750,000 | 18% |
| 12,000,001 -- 25,000,000 (next 13,000,000) | Next 1,083,333 | 21% |
| 25,000,001 -- 50,000,000 (next 25,000,000) | Next 2,083,333 | 23% |
| Above 50,000,000 | Above 4,166,667 | 25% |
Key changes from pre-2026:
- NGN 800,000 tax-free threshold replaces the old 7% starting rate
- Top rate increased from 24% to 25%
- Rent Relief introduced: 20% of annual rent, capped at NGN 500,000
- Termination exemption raised to NGN 50,000,000 (was NGN 10,000,000)
- Gratuity is now taxable
- National minimum wage earners are tax exempt
- Military salaries are tax exempt
Consolidated Relief Allowance (CRA)
The CRA is the primary relief mechanism under both systems. It has two components that are added together:
- Component A: Higher of NGN 200,000 OR 1% of gross income
- Component B: 20% of gross income
- Total CRA = Component A + Component B (minimum 21% total relief)
Worked Example (Annual Gross = NGN 4,200,000):
| Component | Calculation | Amount (NGN) |
|---|---|---|
| Component A option 1 | Fixed | 200,000 |
| Component A option 2 | 1% x 4,200,000 | 42,000 |
| Component A | MAX(200,000, 42,000) | 200,000 |
| Component B | 20% x 4,200,000 | 840,000 |
| Total CRA | 200,000 + 840,000 | 1,040,000 |
Rent Relief (NTA 2025 Only)
- 20% of the employee's declared annual rent
- Capped at NGN 500,000
- Employee must provide their annual rent amount (entered in the annual rent field)
- Supporting documents may be required
Minimum Wage Exemption
Employees earning the national minimum wage or below are fully exempt from PAYE tax under the NTA system.
PAYE Calculation
Step-by-Step Guide
The module calculates PAYE automatically during payrun processing. The steps are:
- Annual Gross Income = Sum of all salary components x 12
- Pensionable Income = (Basic + Housing + Transport) x 12
- Employee Pension = 8% of Pensionable Income
- Gross After Pension = Annual Gross - Annual Pension
- CRA = MAX(200,000, 1% x Gross) + 20% x Gross
- Other Deductions = NHF + NHIS + Rent Relief (NTA only)
- Taxable Income = Gross After Pension - CRA - Other Deductions
- Apply progressive tax bands to Taxable Income
- Monthly PAYE = Annual PAYE / 12
Worked Example (2026 NTA)
Employee earning NGN 350,000/month:
| Component | Monthly (NGN) | Annual (NGN) |
|---|---|---|
| Basic Salary | 150,000 | 1,800,000 |
| Housing Allowance | 75,000 | 900,000 |
| Transport Allowance | 50,000 | 600,000 |
| Utility Allowance | 40,000 | 480,000 |
| Meal Allowance | 35,000 | 420,000 |
| Total Gross | 350,000 | 4,200,000 |
Calculation:
| Step | Description | Amount (NGN) |
|---|---|---|
| 1 | Annual Gross Income | 4,200,000 |
| 2 | Pensionable Income (Basic + Housing + Transport) | 3,300,000 |
| 3 | Employee Pension (8% of 3,300,000) | 264,000 |
| 4 | Gross After Pension (4,200,000 - 264,000) | 3,936,000 |
| 5a | CRA Component A: MAX(200,000, 42,000) | 200,000 |
| 5b | CRA Component B: 20% x 4,200,000 | 840,000 |
| 5c | Total CRA | 1,040,000 |
| 6 | Taxable Income (3,936,000 - 1,040,000) | 2,896,000 |
| 7a | First 800,000 @ 0% | 0 |
| 7b | Remaining 2,096,000 @ 15% | 314,400 |
| 8 | Annual PAYE | 314,400 |
| 9 | Monthly PAYE (314,400 / 12) | 26,200 |
How to Run a Payrun
- Navigate to Payroll > Pay Runs.
- Click New to create a new payrun.
- Select the pay period and employees.
- The system calculates PAYE, pension, and all statutory deductions automatically.
- Review the breakdown in the payrun detail view.
- Approve and finalise the payrun.
Cumulative vs Non-Cumulative Basis
- Cumulative: Tax is calculated on year-to-date earnings, accounting for prior months. Ensures accurate annual tax liability.
- Non-cumulative: Each month is treated independently. Used for casual or temporary employees.
Handling Special Payments
| Payment Type | Method |
|---|---|
| 13th Month / Bonus | Recalculate annual PAYE including bonus. Difference = PAYE on bonus. |
| Overtime | Add to gross pay for that month and calculate PAYE on total. |
| Salary Arrears | Allocate to the periods they relate to. Recalculate PAYE for those periods. |
| Part-Time Employees | Same calculation as full-time if earnings exceed tax-free threshold. |
Statutory Contributions
All statutory contributions are calculated automatically during payrun processing.
| Contribution | Employee Rate | Employer Rate | Basis | Mandatory |
|---|---|---|---|---|
| Pension (PRA 2014) | 8% minimum | 10% minimum | Basic + Housing + Transport | Yes (15+ employees) |
| NHF | 2.5% | -- | Basic Salary | Voluntary (private sector, from 2026) |
| NSITF | -- | 1% | Total Payroll | Yes |
| ITF | -- | 1% | Total Payroll | Yes (25+ employees OR turnover >= NGN 50M) |
| NHIS | 5% | 10% | Basic Salary | Yes (10+ employees) |
Key Notes
- Pension is deducted pre-tax (reduces taxable income).
- NHF applies to employees earning NGN 30,000+ per annum. From 2026, it is voluntary for private sector employers.
- NSITF (Employee Compensation Act) is employer-only.
- ITF applies to companies with 25 or more employees or annual turnover of NGN 50M+.
- NHIS contributions are tax-deductible.
- The minimum total pension contribution is 18%. The employer may elect to bear the full contribution at 20%.
Pension Management
Navigate to Payroll > Pensions to manage pension contributions, schemes, and payments.
Tabs
| Tab | Description |
|---|---|
| Contributions | View employee and employer pension contributions per payrun |
| Schemes | Manage pension scheme configurations |
| Payments | Record and track pension remittances to PFAs |
PFA (Pension Fund Administrator) Enrollment
Each employee must be enrolled with a PFA. The following fields are captured on the employee record:
| Field | Description |
|---|---|
| PFA Name | Pension Fund Administrator (selectable dropdown) |
| PFA PIN | Employee's pension fund administrator PIN |
| Pension Scheme | Optional: assign to a custom pension scheme |
Pension Schemes
Navigate to Payroll > Settings > Pension Schemes to create custom schemes.
Pension schemes allow different employee groups to have different contribution rates:
| Field | Description |
|---|---|
| Scheme Name | Descriptive name (e.g., "Senior Management Pension") |
| Scheme Code | Unique code for the scheme |
| PFA | Default PFA for the scheme |
| Employee Rate | Custom employee contribution rate (default: 8%) |
| Employer Rate | Custom employer contribution rate (default: 10%) |
| Voluntary Rate | Additional voluntary contribution rate |
| Pensionable Components | Which salary components are included (Basic, Housing, Transport) |
| Max Earnings Cap | Optional ceiling on pensionable earnings |
Pensionable Earnings
The statutory minimum pensionable income comprises:
- Basic Salary
- Housing Allowance
- Transport Allowance
Custom schemes can modify which components are included and set earnings caps.
Pension Payments
Navigate to Payroll > Pensions > Payments to:
- View pending pension remittances
- Record payments made to PFAs
- Generate pension payment reports
- Review payment history per scheme
Salary Levels and Steps
Navigate to Payroll > Settings > Salary Levels to configure structured salary grades.
Creating Salary Levels
Salary levels provide structured pay grades, commonly used in civil service and large organisations (e.g., GL 01 through GL 17).
| Field | Description |
|---|---|
| Level Name | Display name (e.g., "Grade Level 07") |
| Level Code | Unique code (e.g., "GL07") |
| Sort Order | Display ordering |
Adding Steps Within Levels
Each level contains one or more steps representing annual progression:
| Field | Description |
|---|---|
| Step Number | Step within the level (e.g., 1, 2, 3) |
| Annual Salary | Gross annual salary for this step |
| Monthly Salary | Auto-calculated from annual salary |
| Basic Allowance | Basic salary component |
| Housing Allowance | Housing component |
| Transport Allowance | Transport component |
Assigning Employees to Levels/Steps
- Navigate to the employee edit form.
- Enable Use Level Salary toggle.
- Select the Salary Level from the dropdown.
- Select the Step within that level. The salary preview updates automatically.
- Save. The employee's effective salary is now derived from the level/step configuration.
When use-level-salary is enabled, the system uses the step salary instead of the employee's individual pay rate.
Bulk Salary Adjustment
From the Salary Levels settings page, you can adjust salaries across an entire level or all levels simultaneously. This is useful for annual cost-of-living adjustments.
Employee Loans
Navigate to Payroll > Settings > Loans to configure loan types.
Loan Types Configuration
| Field | Description |
|---|---|
| Loan Name | Descriptive name (e.g., "Salary Advance", "Car Loan") |
| Maximum Amount | Ceiling for this loan type |
| Maximum Tenure | Maximum repayment period (months) |
| Interest Rate | Annual interest rate |
| Interest Type | Simple or compound |
| Requires Approval | Whether manager/admin approval is needed |
Loan Lifecycle
Configure Loan Types
|
Apply for Loan (employee or admin)
|
Approval Workflow (if required)
|
Loan Disbursed
|
Automatic Payroll Deduction (each payrun)
|
Repayment Tracking (principal + interest split)
|
Loan Fully Repaid
Applying for a Loan
- Select the employee and loan type.
- Enter the loan amount and preferred tenure.
- The system calculates the monthly repayment amount, including interest.
- Submit for approval (if the loan type requires it).
Automatic Payroll Deduction
Active loans are automatically deducted during payrun processing (Step 9b in the payroll calculation). Each repayment record tracks:
| Field | Description |
|---|---|
| Payrun Reference | Which payrun the deduction occurred in |
| Principal Amount | Portion applied to loan principal |
| Interest Amount | Interest portion of the payment |
| Outstanding Balance | Remaining loan balance after deduction |
Repayment Tracking
View all loan repayments per employee, including:
- Total amount disbursed
- Total repaid to date
- Outstanding balance
- Repayment schedule vs actual payments
Promotions
Navigate to Payroll > Employees > Promotions to manage employee promotions and step increments.
Promotion Tabs
| Tab | Description |
|---|---|
| Individual | Promote a single employee to a new level/step |
| Bulk | Promote multiple employees at once |
| CSV Import | Upload promotions via CSV file |
| History | View all promotion records |
Individual Promotion
- Select the employee.
- Choose the new salary level and step.
- Set the effective date and reason.
- Save. The system records the before/after salary details.
Bulk Promotion
- Select multiple employees.
- Choose the target level/step or specify a step increment.
- Set the effective date and reason.
- All selected employees are promoted with a shared batch reference.
Step Increment (Annual Progression)
Step increment automatically advances an employee to the next step within their current salary level. This is the standard annual progression mechanism.
- Individual: Advance one employee to the next step.
- Bulk: Advance multiple employees simultaneously.
CSV Import for Promotions
Upload a CSV file to process promotions in bulk. The system matches employees by code or email.
CSV Format:
employee_code,employee_email,to_level_code,to_step_number,new_salary,effective_date,reason
EMP001,[email protected],GL07,3,,2026-04-01,Annual step increment
EMP002,[email protected],GL09,1,4500000,2026-04-01,Promotion to senior grade
| Column | Required | Description |
|---|---|---|
| employee_code | Yes* | Employee code for matching |
| employee_email | Yes* | Employee email for matching (fallback) |
| to_level_code | Yes | Target salary level code |
| to_step_number | Yes | Target step within the level |
| new_salary | No | Override salary (uses step salary if blank) |
| effective_date | Yes | Date the promotion takes effect |
| reason | No | Reason for the promotion |
*At least one of employee code or employee email must be provided.
A CSV template can be downloaded from the import tab.
Promotion History
The History tab displays all promotions with:
- Employee name and code
- Previous level/step and salary
- New level/step and salary
- Effective date
- Promotion type (individual, bulk, CSV import, step increment)
- Batch reference (for bulk/CSV)
Withholding Tax (WHT)
WHT is deducted at source on specified transactions and remitted to the NRS.
WHT Rate Table
| Transaction | Corp Resident | Corp Non-Resident | Individual Resident | Individual Non-Resident |
|---|---|---|---|---|
| Dividends / Interest | 10% | 10% | 10% | 10% |
| Royalty | 10% | 10% | 5% | 5% |
| Rent / Hire / Lease | 10% | 10% | 10% | 10% |
| Commission / Consultancy / Professional Fees | 5% | 10% | 5% | 10% |
| Supply of Goods (not manufacturer) | 2% | N/A | 2% | N/A |
| Construction (roads, bridges, buildings) | 2% | 5% | 2% | 5% |
| Other Construction | 5% | 10% | 5% | 10% |
| Brokerage Fee | 5% | 10% | 5% | 10% |
| Directors' Fees | N/A | N/A | 15% | 20% |
| Loss of Employment Compensation | N/A | N/A | 10% | 10% |
| Entertainers / Sport Persons | N/A | 15% | N/A | 15% |
| Lottery / Gaming Winnings | N/A | N/A | 5% | 15% |
WHT Exemption for Small Companies
Small companies are exempt from WHT if:
- Monthly transactions are below NGN 2,000,000, AND
- A valid TIN is held
Filing
- Deadline: 21st of the month following deduction
- Method: Electronic filing via NRS TaxPro Max platform
- Monthly WHT return must list beneficiary name, TIN, amount paid, and WHT deducted
- A WHT credit note must be issued to the beneficiary
Company Income Tax (CIT)
CIT Rates
| Company Size | CIT Rate | Criteria |
|---|---|---|
| Small | 0% | Annual turnover <= NGN 100M AND fixed assets <= NGN 250M |
| Standard | 30% | All other companies |
Note: Professional service providers are excluded from the small company exemption.
Development Levy
- Rate: 4% of assessable profits
- Replaces: TET (3%), NITDA Levy (1%), NASENI Levy (0.25%), PTF Levy (0.005%)
- Small companies are exempt
Minimum Effective Tax Rate (ETR)
- 15% minimum ETR for large companies with annual turnover >= NGN 20 billion
- Top-up tax applies if the effective tax rate falls below 15%
Filing
- Deadline: 6 months after accounting period end
- Late filing penalty: 10% of tax due
- Late interest: CBN MPR + additional percentage per annum
- Small companies must still file annual returns despite zero tax liability
Value Added Tax (VAT)
Rate
- Standard: 7.5%
Zero-Rated Items (0% -- allows input VAT recovery)
- Basic food items
- Medical and pharmaceutical products
- Educational books and materials
- Electricity generation and transmission services
- Medical equipment and services
- Tuition fees
- Non-oil exports
Exempt Items (no input VAT recovery)
- Humanitarian-project goods
- Assistive devices for disabilities
- Export Processing Zone / Free Trade Zone supplies
- Rent
- Public transportation
- Renewable energy
E-Invoicing
- Mandatory for all VAT-registered businesses
- Must include business registration number and sequential numbering
- Real-time validation via Merchant Buyer Solution (MBS)
Input VAT Recovery
- Recovery allowed on all purchases including services and fixed assets
- Claim deadline: 5 years from incurrence
- Mixed supplies: claim in proportion to taxable use
- Excess input VAT refunds: claim within 12 months
- NRS must process refunds within 30 days
Filing Deadlines
| Filing Type | Deadline |
|---|---|
| PAYE monthly remittance | 10th of the following month |
| WHT monthly filing and remittance | 21st of the following month |
| Annual PAYE return (Form H1) | 31 January following the tax year |
| CIT annual return | 6 months after accounting period end |
| Stamp duty payment | 30 days after execution |
| CGT self-assessment | 30 June and 31 December |
| VAT refund claim | Within 12 months |
| Input VAT claim | Within 5 years |
Penalties
| Violation | Penalty | Additional |
|---|---|---|
| Failure to deduct PAYE/WHT | 40% of the amount not deducted | Expense disallowed for CIT/PIT |
| Failure to file returns | NGN 100,000 first month + NGN 50,000 each subsequent month | -- |
| Late remittance of tax | 10% per annum + interest at CBN rate | Up to 3 years imprisonment |
| Submitting false documents | NGN 1,000,000 | Up to 3 years imprisonment or fine, or both |
| Bribery / inducement | NGN 500,000 (individual) / NGN 2,000,000 (corporate) | Up to 3 years imprisonment |
| Vendor non-compliance | NGN 5,000,000 | -- |
| VAT false claims | Repayment + 100% penalty + interest at CBN MPR | -- |
Dispute Resolution
- Tax Ombud: Independent body for taxpayer complaints and mediation
- Tax Appeal Tribunal (TAT): Expanded powers, exclusive jurisdiction over tax disputes
- Objections to assessments must be resolved within 90 days
- If the tax authority fails to respond in 90 days, the taxpayer automatically wins
- A formal Taxpayer Bill of Rights guarantees the right to accurate information, timely responses, and appeal
Tax Year Configuration
Navigate to Payroll > Settings > Tax Year Config to configure tax rates and statutory contribution parameters per company and tax year.
How Configuration Works
ABBPay supplies default rates for each tax year. You can override them for your company where needed; if you do not, the defaults apply.
Configuration Sections
| Section | What It Configures |
|---|---|
| PAYE | Tax bands, CRA parameters, rent relief cap |
| Pension | Employee/employer rates, mandatory flag |
| NHF | Employee rate, voluntary/mandatory flag |
| NSITF / ITF | Employer rates, employee thresholds, turnover thresholds |
| NHIS | Employee/employer rates |
| CIT | Standard/small company rates, development levy |
| WHT | WHT rate table |
| VAT | Standard rate, zero-rated/exempt items |
Creating a Tax Year Configuration
- Navigate to Payroll > Settings > Tax Year Config.
- Select the tax year (e.g., 2026).
- Choose the tax system: CRA (pre-2026) or NTA (2026+).
- Configure each section with the applicable rates.
- Save. The configuration is stored per company and per tax year.
NRS Submission
TaxPro Max Portal
The NRS TaxPro Max portal is the official e-filing platform for all tax returns and remittances.
| System | URL | Purpose |
|---|---|---|
| NRS TaxPro Max | https://selfservice.nrs.gov.ng/ | E-filing portal |
| NRS TIN Portal | https://taxid.nrs.gov.ng/ | TIN registration |
| NRS Chatbot | https://chatbot.nrs.gov.ng/ | Support chatbot |
| NRS Helpdesk | 02094602700 / [email protected] | Phone and email support |
TIN Registration
- TIN is mandatory for all taxable persons from 1 January 2026
- NIN (National Identification Number) serves as TIN for individuals
- CAC registration number serves as TIN for businesses
- TIN non-compliance restricts bank accounts, insurance, pension, investments, and government contracts
Digital Filing Requirements
- Electronic filing is mandatory via the NRS platform
- Digital record-keeping is required
- E-invoicing for VAT-registered businesses
- All transactions must be processed through the Electronic Fiscal System (EFS)
Submission Types
| Type | Description | Deadline |
|---|---|---|
| PAYE Monthly | Monthly PAYE return (Form A equivalent) | 10th of following month |
| Pension | PENCOM monthly remittance schedule | Monthly |
| NHF | FMBN monthly contribution schedule | Monthly |
| NSITF | Employer compensation remittance | Monthly |
| ITF | Industrial training levy | Monthly |
| Annual PAYE (Form H1) | Year-end PAYE return with all employee details | 31 January |
| CIT | Company income tax return | 6 months after period end |
CSV Export
The system can generate CSV exports for each submission type, providing downloadable templates formatted for TaxPro Max upload.
Settings
Navigate to Payroll > Settings to access the full settings panel.
Available Settings Pages
| Setting | Navigation | Description |
|---|---|---|
| FIRS/NRS Settings | Payroll > Settings > FIRS | NRS registration details, TIN, filing preferences |
| Paystack Connect | Payroll > Settings > Paystack Connect | Paystack integration for salary disbursement |
| Allowances (Payments) | Payroll > Settings > Payments | Configure custom allowance types |
| Deductions | Payroll > Settings > Deductions | Configure custom deduction types |
| Pay Calendar | Payroll > Settings > Calendar | Set up pay periods and schedules |
| Payday | Payroll > Settings > Payday | Configure payday rules |
| Tax Year Config | Payroll > Settings > Tax Year Config | Tax rates and statutory parameters |
| Salary Levels | Payroll > Settings > Salary Levels | Salary grade structures |
| Loans | Payroll > Settings > Loans | Loan type configuration |
| Pension Schemes | Payroll > Settings > Pension Schemes | Custom pension scheme configuration |
| Global Settings | Payroll > Settings > Global | Company info, pay schedules, tax, deduction defaults |
Allowance Configuration
Navigate to Payroll > Settings > Payments to create and manage allowance types that appear in payrun processing.
| Action | Description |
|---|---|
| Add Allowance | Create a new allowance type with name and default amount |
| Edit Allowance | Modify an existing allowance type |
| Delete Allowance | Remove an allowance type |
Deduction Configuration
Navigate to Payroll > Settings > Deductions to create and manage custom deduction types beyond the statutory deductions.
| Action | Description |
|---|---|
| Add Deduction | Create a new deduction type with name, rate/amount, and basis |
| Edit Deduction | Modify an existing deduction type |
| Delete Deduction | Remove a deduction type |
Worksheet Integration
The payroll module supports timesheet-based salary calculation through integration with the HR timesheets module.
How It Works
When enabled, employee salaries for a payrun period are calculated based on actual hours worked as recorded in HR timesheets, rather than using a fixed monthly salary.
Configuration
- Default: Off (employees receive their fixed salary)
- Toggle: Enable worksheet integration in payroll settings
- When enabled, the payrun pulls timesheet data for the pay period and calculates gross pay based on hours worked multiplied by the employee's hourly rate
Use Cases
- Hourly-rate employees
- Shift-based workers
- Part-time staff with variable hours
- Organisations requiring timesheet-verified payroll
Year-End Processing
Navigate to Payroll > Year End to manage year-end tasks and reporting.
Year-End Tabs
| Tab | Description |
|---|---|
| Tasks | Checklist of year-end tasks (reconciliation, final payrun, submissions) |
| Reports | Generate annual reports (Form H1, P&L summary, contribution summaries) |
| Summary | Year-end financial summary with totals |
Annual PAYE Return (Form H1)
The Form H1 is the annual PAYE return filed with the NRS by 31 January following the tax year. It includes:
- Employer details (TIN, company name, address)
- Employee-by-employee breakdown of annual earnings, deductions, and PAYE
- Total PAYE deducted and remitted during the year
Nigerian Employee Fields
The following Nigeria-specific fields are available on the employee record:
| Field | Description | Required |
|---|---|---|
| TIN | Tax Identification Number | Yes |
| PFA PIN | Pension Fund Administrator PIN | Yes |
| PFA Name | Selected from dropdown | Yes |
| NHF Number | National Housing Fund number | No |
| Annual Rent | For NTA Rent Relief calculation | No |
| State of Residence | Nigerian state | No |
| LGA | Local Government Area | No |
| NHF Enabled | Toggle NHF deduction | No |
| NSITF Enabled | Toggle NSITF deduction | No |
| NHF Exempt | NHF exemption flag | No |
| Pension Scheme | Custom pension scheme assignment | No |
| Salary Level | Assigned salary level | No |
| Salary Step | Step within the salary level | No |
| Use Level Salary | Use level/step salary instead of individual pay rate | No |
Public Salary Calculator
A guest-facing Nigeria salary calculator is available for marketing purposes at /nigeria-salary-calculator. No authentication is required.
Features
- Tax year selector (2025 CRA / 2026 NTA)
- Salary component inputs (basic, housing, transport, other allowances)
- Pension toggle with configurable rate
- NHF toggle
- Annual rent input for rent relief (NTA only)
- Results breakdown: gross/net pay, tax by band, CRA/rent relief, employer costs
- All amounts formatted with the NGN (₦) prefix
Payroll Workflow Summary
Configure Settings (Tax Year, Pension Schemes, Allowances, Deductions)
|
Add Employees (with TIN, PFA, salary details)
|
Assign Salary Levels/Steps (optional)
|
Create Payrun (Payroll > Pay Runs > New)
|
System Calculates: PAYE + Pension + NHF + NSITF/ITF + NHIS + Loans
|
Review Payrun Breakdown
|
Approve and Finalise
|
Generate Payslips
|
Remit Statutory Contributions (by deadlines)
|
File with NRS via TaxPro Max
|
Year-End: Form H1 + Annual Reconciliation
Additional features
This section lists further Nigeria payroll features available to you.
Federal civil service salary scales
Nine federal scales are available as templates, with one-click "Apply Government Scale" import and an optional multiplier:
| Scale | Levels | Total steps | Use case |
|---|---|---|---|
| CONPSS | GL01–GL17 | 219 | Federal civil service |
| CONHESS | CHS01–CHS15 | 225 | Non-medical health |
| CONMESS | CMS01–CMS06 | 54 | Doctors |
| CONUASS | CUASS01–07 | 63 | University academic |
| CONJUSS | JJ01–05 | 25 | Judiciary |
| CONPOSS | POL01–16 | 240 | Police |
| CONTISS | CONTISS01–15 | 225 | Tertiary non-teaching |
| CONPCASS | CONPCASS01–07 | 63 | Polytechnic / colleges of education |
| CONAFSS | AFSS01–18 | 153 | Armed forces |
Total: 106 levels, 1,272 steps. State governments use the multiplier (typically 0.95) to scale to their own rates. Eligible employees advance one step each year, with an 11-month minimum gap from the previous increment.
Statutory leave events
Full leave lifecycle with state-specific defaults:
| Type | Federal default | Lagos override | Statute |
|---|---|---|---|
| Sick | 12 working days/year @ 100% | — | Labour Act §16 |
| Maternity | 12 weeks @ 50% (federal min) | 16 weeks @ 100% | Labour Act §54; Lagos law 2017 |
| Paternity | 14 working days @ 100% (federal CSR) | 10 working days @ 100% | FCSR §100222 |
| Compassionate | 7 days, extendable @ 100% | — | FCSR §100247 |
| Casual | 5–10 days @ 100% (CBA-driven) | — | CBA |
| Study | per approval | — | FCSR §100257-262 |
| Pilgrimage | 30 days every 4 years @ 100% | — | FCSR §100242 |
| Adoption | per Lagos law | — | Lagos law |
Leave is taken into account in the pay run before PAYE so the taxable base is correct. Manage leave events from the per-employee action menu.
Garnishee orders
Court-issued attachments of earnings under Sheriffs and Civil Process Act §83-92:
- Court name, suit number, total order amount, periodic deduction.
- Per-order protected earnings % (default 60% per CBN guidance).
- Order types: garnishee, maintenance, tax default.
- Multiple orders are queued by start date; the balance reduces automatically.
- Applied in the pay run after net pay is computed.
- Manage orders from the per-employee action menu.
Overtime, shift differential and call duty
| Item | Rule | Statute |
|---|---|---|
| Overtime | 1.5× weekday, 2× weekend or public holiday; manager exclusion | Labour Act §74, §91 |
| Shift differential | 15% night, 50% weekend, 50% holiday (adjustable for your company) | Company-defined |
| Call duty | Cadre-based per-call rates (CMS01–CMS06, CHS09–CHS13); pension-exempt, taxable | PRA 2014 + CONHESS/CONMESS |
A 26-entry allowance catalogue with pensionable, taxable and reimbursable flags ensures correct treatment of every salary component.
Acting allowance
Federal CSR §030404. 28% of the acting role's basic when the acting period exceeds 30 days, pro-rated for partial months. Where an employee is not eligible (for example, fewer than 30 days or no upgrade), the reason is shown.
NHIA banded contributions
NHIA Act 2022 replaces the legacy flat NHIS rate with banded contributions:
| Monthly basic (NGN) | Employee | Employer |
|---|---|---|
| 0 – 30,000 | 2.5% | 5% |
| 30,001 – 100,000 | 5% | 10% |
| 100,001 – 300,000 | 7.5% | 12.5% |
| 300,001+ | 10% | 15% |
Eligibility: the employer must have 10 or more employees and the employee must be opted in. Banded contributions are an opt-in setting; the legacy 5%/10% flat rates remain the default.
Minimum wage compliance
Per the National Minimum Wage Act 2024:
- Federal floor: ₦70,000/month (effective 2024-07-29).
- State overrides: Lagos ₦85,000 (2025-01-01), Rivers ₦85,000 (2025-01-01), Edo ₦75,000 (2024-12-01).
The pay run compares each employee's gross pay to the applicable minimum and flags non-compliance. It does not block the pay run; the payslip is still produced.
Identity verification
You can verify an employee's BVN, NIN and TCC from the employee's Tax Compliance section, or in bulk from the employee list. Editing an employee's BVN or NIN clears its last-verified date so it can be verified again.
e-Invoicing
The Nigeria Tax Administration Act 2025 requires electronic invoicing for VAT-registered businesses. ABBPay prepares NRS-compliant invoice data, including the Invoice Reference Number, supplier and customer details with TIN, line items with VAT breakdown (typically 7.5%) and currency (NGN). Live submission to the NRS gateway is not yet available.
State-level PAYE routing
Each employee's PAYE is routed to the correct state internal revenue service based on their state of residence (for example Lagos to LIRS, Rivers to RIRS, FCT to FIRS-FCT). All 36 states and the FCT are covered, and PAYE can be grouped by state for submission.
IPPIS export
CSV exports in IPPIS column order:
- Personnel — PERSAL number, GL, Step, basic, allowances, deductions
- Variations — joiners, leavers, promotions, transfers (date-range filterable)
Export is CSV-only at present.
Group Life policies
PRA 2014 §4(5) requires every employer with 3 or more staff to carry Group Life Insurance worth 3× annual emolument. Record the insurer, policy number, sum assured, premium and expiry for each policy. ABBPay emails reminders 30, 14 and 7 days before expiry.
Bulk operations
- Apply a percentage salary rise to a level or cadre, with a batch reference and a dry-run preview.
- Check for stale BVN, NIN and TCC verifications and re-verify them.
- Bulk Transfer: move employees between MDAs or states with an effective date and shared batch reference.
Mobile-first employee portal
Nigerian employees get a mobile-first portal with a dashboard, payslips, profile, leave, loans and pension pages. It uses Nigerian terminology throughout: TIN, NIN, BVN, PFA, RSA, NHF, NHIA, NSITF and ITF.
NRS submissions
ABBPay covers seven submission types: PAYE Monthly (Form A equivalent), Annual H1, CIT, Pension to PenCom, NHF, NSITF and ITF. Each submission keeps a record of its reference, response and status.
TaxPro Max
ABBPay is designed to work with the NRS TaxPro Max e-filing platform. Live PAYE submission through TaxPro Max is not yet available.
Public Nigeria Salary Calculator
A free, public salary calculator is available without signing in. Choose the tax year (2025 CRA / 2026 NTA), enter salary details, and toggle pension, NHF and annual rent (for NTA Rent Relief). It shows Gross, Net, tax breakdown, Rent Relief, employer cost and a band-by-band breakdown.