HR Software for Nigeria

Leave Policy

Maternity Leave

Pregnant employees who have worked continuously for at least six months are entitled to 12 weeks of paid leave. Six weeks must be taken before the birth of the child and six weeks after the birth of the child. The employee receives at least 50% of his salary during this period and the employer is responsible for payment.

The employee can extend the vacation in the event of illness, which is certified by a licensed doctor.

You can use the leave module in IceHrm to manage maternity leave in Nigeria.

Paternity Leave

There is currently no statutory paternity leave.

Parental Leave

In Nigeria, parental leave is not regulated by law. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Employees are entitled to up to 12 days of paid sick leave. Leave can be taken for illnesses certified by a licensed doctor. During this leave, the employee is entitled to 100% of his or her basic salary and the employer is responsible for paying this amount.

Pay & Tax

Minimum Wage Requirements

The minimum wage is NGN 65,000 per month.

Individual Income Tax

The individual income tax ranges from 7% to 24%. Income tax is calculated based on income tax bands.

Gross Annual Income (NGN)Tax Rate (%)
Up to 300,0007%
Up to 600,00011%
Up to 1,110,00015%
Up to 1,600,00019%
Up to 3,200,00021%
Over 3,200,00024%

Payroll Cost

Employer costs are generally estimated at 12.0% of employee wages.

  • Industrial Training Fund – 1.10%
  • Nigeria Social Insurance Trust Fund – 1.0%
  • Bond funds – 10.0%
  • Life Insurance (GPA) – 1.8%

Overtime Pay & Maximum Hours

Pay for overtime is not mandatory. Hours that fall outside of normal working hours are considered overtime. There is no maximum working time. The amount of overtime pay is not set by law but is at the discretion of the employer.

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps in certain termination cases.

Layoffs in Nigeria can be complex. In Nigeria, employers cannot terminate at will and the termination must be for a valid reason. Proper terminations include:

  • Voluntary by the employee
  • By mutual agreement
  • Due to the expiry of the contract
  • Unilaterally by the employer due to:
    1. Objective reasons
    2. Dismissal for disciplinary reasons
    3. Criminal offenses
    4. Performance due to lack of suitability for the job
    5. Permanent inability to work due to accident or illness

Notice Period

In Nigeria there is no legal requirement to provide notice. However, best practice is to provide 30 days’ notice for non-executive employees and at least 30 days’ notice for executive employees.

In cases involving allegations of misconduct, the employer is not obliged to provide notice.

Severance for Employees

There are no legal regulations for severance payments for employees who are not covered by the Labor Act. During the notice period, the employee receives a normal salary.

All workers and employees (who are covered by the Labor Code) are entitled to redundancy pay. The amount of the redundancy payment is not required by law, but is at the discretion of the employer.

Statutory Time Off

Paid Time Off

Full-time employees are entitled to 6 days of paid time off per year. PTO is credited monthly, 0.5 days per month. Employees are entitled to annual leave after 12 months of work.

Full-time employees under the age of 16 are entitled to 12 days of paid vacation per year.

Public Holidays

There are 10 national holidays and 2 regional holidays in Nigeria. National holidays include:

  • New Year’s Day
  • Good Friday
  • Easter Monday 
  • Worker’s Day
  • Sallah National Holiday (2 days)
  • Democracy Day
  • Id el Kabir (Feast of Sacrifice)
  • Independence Day
  • Christmas Day
  • Boxing Day

Nigeria celebrates 2 regional holidays:

  • Public holiday (Anambra)
  • Sambisa Memorial Day (in Borno)

Onboarding

Onboarding

Onboarding takes 2 business days after the customer signs the SOW.

Additional Info

Employment Contract Details

The contracts must be written in English and can be bilingual. They must be in writing and signed by both parties.

A contract must contain:

  • Surname
  • Start date
  • Tasks and responsibilities
  • Working hours
  • Pay and other benefits
  • Conditions for termination of employment

Probation Period

Employees hired through IceHrm have a probationary period of 90 days, which you can extend up to 180 days. From January 2022, it is IceHrm’s company policy to include probationary periods in all employment contracts.

The probationary period helps employers and employees make sure they are a good fit for each other. This allows the company to quickly decide whether it is a good fit, and the employee can see whether the position matches their career goals.