How to Use the Nigeria Salary Calculator

A Nigerian salary Calculator is a digital tool that helps employees and employers calculate take-home pay by considering deductions such as taxes, pension contributions, and housing fund deductions.

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What It Does

This calculator provides a clear breakdown of an employee’s salary in Nigeria, showing:

• Gross Salary – the total before deductions.
• Pension Contribution (8%) – compulsory for employees under the Pension Reform Act.
• NHF Contribution (2.5%) – National Housing Fund deduction.
• PAYE Tax (Pay-As-You-Earn) – personal income tax deducted from your salary.
• Net Salary (Take-home pay) – the actual money you receive after all statutory deductions.

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How to Use the Calculator

1. Enter Your Gross Salary
   Type in your monthly gross salary (before any deductions). For example: ₦250,000.
2. Click the “Calculate Net Salary” Button
   The calculator will automatically apply Nigeria’s pension, NHF, and simplified PAYE tax brackets.
3. View Your Salary Breakdown
   You’ll see a detailed result with:
   • Your gross salary
   • Deductions (pension, NHF, PAYE)
   • Final net salary (your real take-home pay).

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Why Use This Calculator?

• Budget Planning – Helps employees understand their real disposable income.
• Transparency – Ensures deductions follow statutory requirements.
• Employer-Employee Communication – Useful for HR teams to show accurate breakdowns.
• Salary Negotiations – Helps job seekers calculate the net effect of a job offer.

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FAQ – Nigeria Salary Calculator

Q1: Does the calculator include allowances like housing or transport?
A: No, this version uses only gross salary and statutory deductions. Some allowances may be tax-free depending on company policies.

Q2: Is PAYE tax calculated exactly as the Nigerian government does it?
A: This calculator uses simplified brackets for easy understanding. In reality, the Federal Inland Revenue Service (FIRS) applies detailed rules with reliefs and allowances.

Q3: Do all employees pay NHF?
A: Yes, employees in organizations with 4 or more staff are required to contribute 2.5% of their monthly basic salary, housing, and transport allowances.

Q4: Is pension mandatory?
A: Yes, under the Pension Reform Act, 8% is deducted from employees, while employers contribute an additional 10%.

Q5: Can I use this calculator for a yearly salary?
A: This version is monthly, but you can multiply the results by 12 for yearly values.

Q6: Is this calculator official?
A: No, it’s an educational and planning tool. For official figures, always confirm with your HR department or the FIRS guidelines.