Nigeria
Hiring Employees in Nigeria
Spoken Language
English is the official language, but Yoruba, Hausa and Igbo are the major recognized languages.
Currency
Nigerian naira (₦)
Average hours & Overtime
Regular hours and overtime pay rates are set in the employment contracts or collective bargaining agreements. Stipulated work hour is 40 hours per week (5 days) excluding 1 hour lunch break.
Wages and salaries
There is a mandated minimum wage of N30, 000 (US$82.84) per month.
Observed National Holidays and vacation
Paid holidays include New Year’s Day, Good Friday, Easter Monday, Workers’ Day, Democracy Day, Nigerian Independence Day, Christmas, Boxing Day, Eid al-Fitr, Eid al-Adha and Eid-el-Malud.
Paid Leave
SICK LEAVE – employees are entitled to 12 days’ sick leave for a temporary illness that must be certified by a medical practitioner.
REST HOURS – in every period of 7 days’ work, employees are entitled to at least a day off. Also if an employee works for more than 6 hours a day, he/she must be given 1 hour of interval on that day.
WORK HOURS – Employees are to work 40 HOURS a week.
HOLIDAYS – employees after 12 months of continuous service, is entitled to a holiday with full pay of at least 6 working days ( this is exclusive of all public holidays.
MATERNITY LEAVE – all female staff are entitled to a minimum of 12 weeks’ maternity leave with full pay
Expats, Visas, & Work Permits
Employers are responsible for obtaining work & residence permits for their expatriate employees. Foreign investors must be granted expatriate quota approval to employ expatriates.
Termination Notice
Where employee has been in employment for a period of 3 months or less, either party may terminate the contract with a minimum of 1 day notice
Where employee has been in employment for a period of 3 months but less than 2 years, either party may terminate the contract with a minimum of 1 week notice
Where employee has been in employment for a period of 2 years but less than 5 years, either party may terminate the contract with a minimum of 2 weeks’ notice
Where employee has been in employment for a period of 5 years or more, either party may terminate the contract with a minimum of 1 month notice
When giving notice of 1 week or more, it must be in writing.
Notice period depends on the contractual agreement, it can extend beyond 1 month based on the agreement between the parties involved.
Statutory Deductions
- Employee Pension Contribution- (Min of 8% of Basic,Housing and Transport Allowance)
- Employer Pension Contribution- Min of -10% of Basic,Housing and Transport Allowance)
- National Housing Fund (NHF) -2.5% of Basic Salary
- PAYE (Income Tax) -Based on Nigeria PIT law
- National Social Insurance Trust Fund (NSITF) – 1% of Gross Income
- Industrial Training Funds (ITF) – 1% of Gross Income
- Group Life Insurance
Health Insurance
- Organizations who have above 5 staff must put them on the health insurance scheme.
- With reference to the National Health Insurance Scheme Act, this applies to employers which have a minimum of 10 employees.
Important Information
Foreign employees who fail to renew their work permit with the government face up 3 years in prison and a fine of 500,000 naira or both.
