Free Payslip Generator Nigeria
Generate itemized employee payslips with statutory deductions in seconds.
Staff & Compensation Information
Official Payslip & Earnings Advice
Earnings
Deductions
Confidential document generated for payroll record purposes.
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Payslip Generator & Salary Breakdown Guide for Nigeria
The Nigeria Payslip Generator calculates your official monthly salary advice, statutory deductions, and net take-home pay based on the Nigerian Labour Act (Cap L1 LFN 2004), Personal Income Tax Act (PITA as amended), Pension Reform Act 2014 (PRA 2014 8%), and National Housing Fund (NHF 2.5%). The tool calculates consolidated gross earnings across basic, housing, and transport allowances, determines Consolidated Relief Allowance (CRA), computes graduated state PAYE tax, subtracts pension and health deductions, and produces an official itemized salary slip.
How to Use the Nigeria Payslip Generator
Enter business name, employee name, staff number, department, and salary month.
Enter basic salary, housing allowance, transport allowance, and other allowances in Naira (₦).
Input 8% employee pension, State PAYE tax, 2.5% NHF, and cooperative deductions.
Review the live confidential salary slip and click Print / Save PDF for payroll distribution.
Understanding Your Nigerian Payslip
What is Consolidated Gross Pay?
Gross pay is the total compensation package combining basic salary, housing allowance, transport allowance (BHT package), and utility/wardrobe allowances before any payroll deductions are subtracted.
What is Net Take-Home Pay?
Net pay is the actual cash credited to the employee Nigerian bank account (Zenith, GTBank, Access, Moniepoint, etc.) via NIBSS Instant Payment (NIP) after all taxes and statutory deductions have been cleared.
What Deductions Are Included?
Mandatory statutory deductions include State PAYE income tax, 8% employee Pension Fund Contribution (PenCom), and 2.5% National Housing Fund (NHF). Voluntary deductions include cooperative dues and salary advances.
How Salary and Deductions Are Calculated in Nigeria
Nigerian payroll calculations follow the statutory Consolidated Relief Allowance (CRA) formula and progressive PITA tax brackets:
Gross Remuneration = Basic Salary + Housing + Transport + Other Allowances
Standard Nigerian structure: 50% Basic, 30% Housing, 20% Transport.
Employee Pension (8%) = (Basic + Housing + Transport) × 0.08
National Housing Fund (2.5%) = Basic Salary × 0.025
Employer matches pension with minimum 10% contribution.
CRA = Max(₦200k/yr, 1% Gross) + (20% × Gross Income)
Taxable Income = Gross - Pension - NHF - (CRA ÷ 12)
Annual PAYE = Progressive PITA Brackets (7% to 24%)
Net Salary = Gross - (Monthly PAYE + Pension + NHF + Other Deductions)
Net take-home amount deposited into employee bank account.
Moniest uses the applicable Nigerian PITA rules and statutory thresholds for the 2026 tax assessment period.
Nigeria Payslip Worked Example: ₦350,000.00 Monthly Remuneration
Consider a full-time corporate employee in Lagos earning a basic salary of ₦175,000.00, housing allowance of ₦105,000.00, and transport allowance of ₦70,000.00 (Total Gross: ₦350,000.00 / Annual: ₦4,200,000.00):
Calculator Assumptions
- Tax Year: Based on the 2026 Personal Income Tax Act (PITA) and Finance Act provisions.
- Relief Applied: Consolidated Relief Allowance (CRA) computed automatically on gross income.
- Pension Scheme: 8% employee contribution calculated on Basic, Housing, and Transport allowances (BHT).
- Estimate Disclaimer: Calculations are estimates for payroll advisory purposes and do not replace State IRS tax assessments.
Tax and Calculation Information
| Item | Details |
|---|---|
| Country / Jurisdiction | Nigeria |
| Currency | NGN (₦) |
| Tax Assessment Year | 2026 PITA Tax Schedules |
| Statutory Framework | Labour Act (Cap L1 LFN 2004), PITA (as amended), Pension Reform Act 2014 |
| Primary Revenue Authority | State Internal Revenue Services (e.g. LIRS, FCT-IRS) & FIRS |
| Last Verified | September 2026 |
Tax rules can change. Check the applicable State IRS and PenCom guidance for your specific circumstances.
Frequently Asked Questions About Nigerian Payslips
Yes, under Section 5 of the Nigerian Labour Act (Cap L1 LFN 2004), employers must provide employees with a written statement of wage particulars and deductions at each wage payment.
The payslip must clearly itemize the employee gross salary, basic pay, allowances, statutory deductions (PAYE, Pension, NHF), and the net salary transferred.
Under the Pension Reform Act 2014, the employee contributes a minimum of 8% of their monthly emoluments (Basic Salary + Housing Allowance + Transport Allowance).
The employer contributes an additional minimum of 10% (total 18%), remitting the entire sum directly to the employee Pension Fund Administrator (PFA) via PenCom-licensed custodians within 7 working days of salary payment.
Under PITA, the Consolidated Relief Allowance grants tax relief equal to the higher of ₦200,000 per year or 1% of gross income, plus an additional 20% of gross income.
This substantial relief is deducted from gross remuneration before progressive tax brackets (7% to 24%) are applied, significantly lowering effective monthly PAYE tax.
No, under Section 5(1) of the Labour Act, no employer may make deductions from wages except for statutory contributions or with the prior written consent of the employee.
Deductions for staff loans or cooperative contributions require explicit signed authorization from the employee.
Under Section 375 of the Companies and Allied Matters Act (CAMA 2020), every registered company must retain payroll records, vouchers, and payslips for at least 6 years.
Maintaining indexed digital PDF copies ensures full compliance during State Internal Revenue Service annual tax audits.
Yes, under Section 84 of the Nigerian Evidence Act 2011, electronically generated PDF payslips and digital records are fully admissible as legal evidence in Nigerian courts and employment tribunals.
Employees must have secure electronic access to retrieve and archive their confidential monthly advice slips.
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Sources & Methodology
The calculation methodology and country-specific rules used by this tool are based on official information from relevant regulatory authorities:
- Joint Tax Board (JTB) & State IRS: Personal Income Tax Act (PITA Cap P8 LFN 2004 as amended) & CRA Regulations.
- National Pension Commission (PenCom): Pension Reform Act 2014 (Mandatory 8% employee and 10% employer contributions).
- Federal Ministry of Labour and Employment: Nigerian Labour Act (Cap L1 LFN 2004) & National Minimum Wage Act.
- Federal Mortgage Bank of Nigeria (FMBN): National Housing Fund (NHF Act No. 3 of 1992).
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