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Employer of Record and Payroll Services in Nigeria Nigeria flag

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  • Contractor management
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Mercans offers complete payroll, PEO and HR services in Nigeria

Mercans is a leading provider of payroll, PEO (Professional Employer Organization), and HR services in Nigeria. They offer a comprehensive range of services to support businesses of all sizes with their HR needs, including payroll processing, tax compliance, employee benefits administration, and more. By outsourcing these critical functions to Mercans, businesses can focus on their core operations and growth, while ensuring that their employees are taken care of.

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Doing Business in Nigeria

Doing business in Nigeria can be both challenging and rewarding. The country has a large and growing economy with vast potential, but it also has many challenges, including infrastructure deficiencies, corruption, and regulatory complexity. To succeed in Nigeria, businesses must understand the local business environment and have a well-structured plan.

Entity Registration and Incorporation Requirements

In Nigeria, entity registration and incorporation requirements include choosing a unique business name and registering it with the Corporate Affairs Commission (CAC), as well as submitting the necessary incorporation documents and obtaining any necessary approvals and licenses. It is important to ensure compliance with all regulations and requirements to legally operate a business in Nigeria.

Banking

Banking Hours: 8.00 am to 3:00 pm Monday and from Tuesday to Friday 8:00 am to 1:30 pm

Working Week

The standard working week is from Monday to Friday from 8:00 am - 4:30 pm

Labor Law

Labor law in Nigeria governs the relationship between employers and employees, including issues such as minimum wage, working hours, health and safety, and termination of employment.

Main Industries

Cement, oil refining, construction and construction materials, food processing

GDP Growth

-14.66%

Dates & Numbers

dd/mm/yyyy

Official State Name

Federal Republic of Nigeria

Population

206 million

Capital

Abuja

Major Languages

English (Nigerian)

Currency

Nigerian Naira

Internet Domain

.ng

International Dialing Code

+234

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Nigeria
Abuja, NG
12:23 am, February 28, 2024
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Humidity 35 %
Wind Gust: 1 mph
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Payroll

Payroll in Nigeria refers to the process of calculating and distributing employee salaries and benefits. It is important for companies operating in Nigeria to have a compliant payroll system in place to ensure accuracy and adherence to local labor laws and regulations.

It is acceptable to provide employees with online payslips

Payslip

Employees receive paid annual leave of 6 days

Reports

Employees receive paid sick leave of 12 days

Annual Leave

Employees receive paid sick leave of 12 days

Sick Leave

16 weeks of paid maternity leave and 21 days of paid paternity leave

Maternity & Paternity Leave

7 days

Employee Termination

There are no provisions mandated by law regarding the 13th-month salary

13th-month salary

30000 NGN per month

Minimum Wage

Overtime payment depends on employment contract agreement and shall not exceed 48 hours per week

Overtime

There are no provisions mandated by law regarding the severance pay

Severance Pay

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Tax and Social Security

Tax and social security in Nigeria refer to the obligations of businesses to pay taxes to the government and to provide social security benefits to employees, including contributions to the National Pension Commission and the National Health Insurance Scheme.

Tax

The tax system in Nigeria is a federal system, administered by the Federal Inland Revenue Service (FIRS), which is responsible for the collection and enforcement of taxes on a national level. Taxes in Nigeria include employment taxes such as Pay-As-You-Earn (PAYE) and Value-Added Tax (VAT).

30%

Corporate Income Tax

24%

Personal Income Tax

7.5%

Sales Tax

7.5%

VAT

Social Security

Social security in Nigeria is governed by the National Pension Commission Act and the National Health Insurance Scheme Act. It requires employers to make contributions on behalf of their employees towards pension and health insurance benefits.

18%

Social Security Rate

10%

Social Security Rate for Employers

8%

Social Security Rate for Employees

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Employment Law

Employment law in Nigeria governs the relationship between employers and employees, including issues such as minimum wage, working hours, health and safety, and termination of employment, and is governed by the Labor Act.

Employment Agreement

An employment agreement in Nigeria is a contract between an employer and employee that outlines the terms and conditions of employment, such as job duties, compensation, benefits, and termination policies. It is important for both parties to have a clear understanding of their rights and responsibilities.

Working condition

In Nigeria, the standard working hours are typically 8 hours per day and 40 hours per week. However, this can vary based on the type of work and the specific company's policies. It is important for employees to familiarize themselves with their company's rules and regulations, such as overtime pay and time off policies.

Leaves

In general, Nigerian workers are entitled to annual leave, sick leave, and public holidays. According to the Nigerian labor law, an employee is entitled to a minimum of 15 working days of annual leave after 12 months of continuous service. Sick leave entitlement is typically based on the number of days worked per week, with an average of 12 days of sick leave per year. Public holidays are determined by the government and typically number about 10 days per year.

Employment termination

Employee termination in Nigeria can occur for a variety of reasons, including misconduct, poor job performance, redundancy, or mutual agreement between the employer and employee. The process for termination and the specific rights and obligations of both parties are governed by the terms of the employment contract and relevant labor laws. It is important for both the employer and employee to understand their rights and responsibilities during the termination process

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7 days

Minimum notice period for terminating an employee

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13 days

Total number of public holidays

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36

Working hours per week

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8 days

Total number of days for Compassionate & Bereavement Leave

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Immigration

To work in Nigeria as a foreign national, one must obtain a work visa and a residency permit. The specific requirements and process for obtaining these documents can vary depending on the type of work and the individual’s country of origin, so it is important to familiarize oneself with the specific immigration laws and procedures of Nigeria.

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Residency permits

A residency permit is required for foreign nationals who wish to work in Nigeria for an extended period of time. You must submit the necessary documentation, pay the required fees, and meet the eligibility criteria to obtain a residency permit in Nigeria. To obtain a residency permit in Nigeria, individuals should familiarize themselves with the requirements.

Work Permit Validity

1 year

Required Documents

A formal application from the sponsoring employer in Nigeria

A passport with a minimum of two blank pages and six months of validity

Proof of sufficient financial means

Two valid passport-size photos

Compliant, reliable, error-free and touchless payroll in Nigeria

Build the best team and hire top talent compliantly in Nigeria. Get in touch with Nigeria payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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