Nigeria has a population of more than 205 million people, with petroleum, tourism, and agriculture key components of the economy. The standard corporate tax rate is 30%, but small businesses and certain industries pay varying rates.
Payroll and Labor Considerations:
- The minimum wage is NGN 30,000 per month. The following are exempt from the obligation of paying minimum wage:
- An establishment with fewer than 25 workers
- An establishment that employs workers on a part-time basis
- An establishment at which wages are paid through commissions
- Workers in seasonal employment (agriculture) and seamen or crew members of an aircraft
- All employees are to be paid overtime for any hours worked above what is agreed upon in their employment contract. The contracts also determine overtime pay rates
- Severance benefits are not mandatory but may be addressed in the contract
- Income tax is progressive and ranges from 7-24%. If income is less than NGN 30,000 per year, the income tax is 1% of gross income
HR and Statutory Requirements
- Employees who have worked for 12 months with the same employer are entitled to at least 6 days of annual leave. Employees under 16 receive 12 days of leave
- Employees are entitled to 12 days of paid sick leave per year, but the illness must be certified by a medical practitioner
- Female employees receive 12 weeks of maternity leave, 6 weeks before delivery and 6 weeks after. Maternity leave is paid at 50% of the employee wages
- There are no provisions for paternity leave
- There is an established Contributory Pension Scheme where employers and employees are mandated to contribute monthly to maintain a Retirement Savings Account
- Employees can begin receiving benefits at the age of 50 or after 6 months of retirement if they retire before the age of 50
Holidays in Nigeria
- January 1 – New Year’s Day
- April 15 – Good Friday
- April 18 – Easter Monday
- May 1 – Workers’ Day
- May 3 – Id el Fitr
- May 4 – Id el Fitr Holiday
- June 12 – Democracy Day
- July 10 – Id el Kabir
- July 11 – Id el Kabir additional holiday
- October 1 – National Day
- October 8 – Id el Maulud
- December 25 – Christmas Day
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