Fully Managed Payroll in Nigeria.
No admin. No guesswork. Just accurate payments and expert support just a phone call away.
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Hiring costs go beyond salary. Estimate the cost of your next hire with this calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.
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*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertNigeria
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“Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.”
“Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.”
“TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.”
Other services
Accelerating your growth in Nigeria and beyond
TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment.
Meet our experts for Nigeria
Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way.
Beyond a payroll serviceA globalization accelerator
Payroll platform
Global payroll simplified
Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity.
Audit
Eliminate barriers to growth
Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals.
Intelligence
Build a data-driven talent strategy
Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits.
Advisory
Expert guidance that turns complexity into clarity.
Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion.
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We help organizations with employ and pay teams in over 180 countries.
Nigeria payroll: frequently asked questions
Payroll outsourcing in Nigeria means a provider calculates gross-to-net pay, applies PAYE personal income tax under the graduated bands, and deducts and remits statutory contributions such as pension, NHF and NSITF on your behalf. The provider handles monthly PAYE returns to the relevant State Internal Revenue Service, pension remittance to licensed Pension Fund Administrators, and payslips. This keeps you compliant with the Nigeria Tax Act 2025 (effective 1 January 2026) and the Pension Reform Act 2014 without building an in-house payroll team. (Sources: https://taxsummaries.pwc.com/nigeria/individual/tax-administration ; https://www.pencom.gov.ng/wp-content/uploads/2018/01/PRA_2014.pdf)
From 1 January 2026, PAYE is calculated on annual taxable income using six graduated bands under the Nigeria Tax Act 2025: the first NGN 800,000 is taxed at 0%, then 15% on the next NGN 2.2m, 18% on the next NGN 9m, 21% on the next NGN 13m, 23% on the next NGN 25m, and 25% above NGN 50m. The old Consolidated Relief Allowance (CRA) has been abolished and replaced by a rent relief of 20% of annual rent paid, capped at NGN 500,000. Pension and NHF contributions remain deductible before tax, and employees earning at or below the national minimum wage (NGN 70,000/month) are exempt from PAYE. (Sources 2026: https://taxsummaries.pwc.com/nigeria/individual/taxes-on-personal-income ; https://kpmg.com/xx/en/our-insights/gms-flash-alert/flash-alert-2025-168.html)
Under the Pension Reform Act 2014, the mandatory contributory pension is 18% of monthly emoluments split as 10% employer and 8% employee, remitted to the employee’s Retirement Savings Account with a licensed PFA. The National Housing Fund (NHF) is 2.5% of monthly basic salary (remitted to the FMBN, now voluntary for private-sector employees), while the NSITF employee-compensation levy is 1% of monthly payroll paid entirely by the employer. The Industrial Training Fund (ITF) levy is 1% of annual payroll for employers with 5+ staff or NGN 50m+ annual turnover, filed annually. (Sources 2026: https://www.pencom.gov.ng/wp-content/uploads/2018/01/PRA_2014.pdf ; https://taxsummaries.pwc.com/nigeria/individual/other-taxes)
The largest employer-borne cost is the 10% pension contribution on qualifying emoluments (Pension Reform Act 2014), on top of the employee’s own 8%. Employers also pay the NSITF employee-compensation levy of 1% of total monthly payroll and, where thresholds are met, the ITF levy of 1% of annual payroll. Employers are additionally responsible for withholding and remitting the employee’s PAYE and pension deductions, so accurate monthly processing and remittance is essential to avoid penalties. (Sources 2026: https://www.pencom.gov.ng/wp-content/uploads/2018/01/PRA_2014.pdf ; https://taxsummaries.pwc.com/nigeria/individual/other-taxes)
PAYE is deducted from salaries every month and must be remitted on or before the 10th day of the month following the month of payment. For most private-sector employees, remittance is made to the relevant State Internal Revenue Service based on the employee’s state of residence, not to the federal authority. Late remittance attracts a penalty plus interest at the prevailing Central Bank of Nigeria rate, and the Nigeria Tax Act 2025 introduced stiffer penalties for under-deduction or delayed remittance from 2026. (Sources 2026: https://taxsummaries.pwc.com/nigeria/individual/tax-administration ; https://smartsmssolutions.com/resources/blog/ng/monthly-paye-remittance-deadlines-nigeria-smes)
Running payroll directly requires a locally registered entity (incorporated with the Corporate Affairs Commission) plus registrations with the tax authorities, PenCom and NSITF. Alternatively, an Employer of Record (EOR) that already holds a Nigerian entity can legally employ your workers, run compliant payroll and remit all statutory deductions, letting you hire without setting up a subsidiary. An EOR is typically the faster and more cost-effective route for smaller teams, with hires often onboarded within 1-2 weeks. (Sources 2026: https://www.usemultiplier.com/nigeria/company-registration ; https://www.skuad.io/employer-of-record/nigeria)