Nigerian Salary Calculator
See your exact take-home pay after PAYE, pension, and NHF — or compare two job offers.
How Nigerian Salary Deductions Work
Your gross salary is what your offer letter shows. Your net (take-home) pay is what lands in your account after three main deductions:
1. PAYE (Income Tax)
Nigeria uses a Pay-As-You-Earn system. Your employer calculates your income tax based on the NTA 2025 tax bands and deducts it monthly. The tax is progressive — higher income is taxed at a higher rate, but only on the portion within each band.
2. Pension (CPS — Contributory Pension Scheme)
Under the Pension Reform Act, employees contribute 8% of (Basic + Housing + Transport) to their Retirement Savings Account (RSA) every month. Your employer contributes a further 10% (not deducted from your pay). Pension contributions also reduce your taxable income.
3. NHF (National Housing Fund)
The Federal Mortgage Bank of Nigeria collects 2.5% of your basic salary monthly. This qualifies you for an NHF mortgage at a subsidised 6% interest rate. Like pension, NHF contributions reduce your taxable income.
Example: ₦300,000/month Salary
Seun earns ₦300,000 gross per month
Salary structure: 50% Basic (₦150K), 25% Housing (₦75K), 25% Transport (₦75K)
Note: Seun's employer also contributes ₦30,000/month to his pension (10%), making his total compensation package worth ₦330,000 — but this doesn't appear in his bank account.
Comparing Job Offers in Nigeria
Two offers with similar gross salaries can have very different take-home pay depending on:
- Salary structure — A higher basic means more pension and NHF deductions but potentially more tax reliefs
- Allowances structure — Some allowances (e.g. transport reimbursement vs transport allowance) are structured to reduce taxable income
- Bonuses — Annual bonuses are taxed at your marginal rate in the month paid — a large bonus can push you into a higher band temporarily
- Benefits — Health insurance, company car, housing benefit may not appear in gross but have real value
- Pension — Check if the employer contributes above the minimum 10%
Use the Compare Offers tab to see the after-tax difference between any two job offers.
Freelance Rate Guide
Converting a salary equivalent to a freelance rate requires accounting for:
- Taxes — As a sole trader, you pay your own income tax (no PAYE). You also bear both employee and employer pension, or manage your own retirement savings
- Benefits gap — No employer health insurance, no paid leave, no bonuses
- Non-billable time — Admin, sales, proposals, idle time. Typically 15–25% of your calendar
- Business expenses — Internet, equipment, software, workspace, professional fees
- Irregular income — You need a cash buffer for months with fewer clients
A rough rule: multiply your target take-home salary by at least 2x to get a minimum sustainable freelance revenue. Use the calculator for your specific situation.