Nigeria Salary Calculator 2026

Calculate your exact monthly take-home pay using the Nigeria Tax Act 2025 rates effective from 2026. Works in both directions: gross salary to net pay, or target net pay to required gross. Full payslip breakdown plus employer cost including pension, NSITF and ITF.

salary-calculator.tool — Nigeria 2026
Basic salary
Housing 20%, Transport 20% — remainder of gross after basic.
Statutory Deductions
Enter your salary to see your full payslip breakdown.

Gross-to-Net and Net-to-Gross

Most salary calculators only go one way. This one works both directions. Gross → Net takes your offered salary and shows exactly what lands in your bank account after PAYE, pension, NHF and NHIS. Net → Gross is the reverse: enter your desired take-home pay and it calculates the gross salary you need to negotiate for.

2026 PAYE Bands (NTA 2025)

The calculator uses the Nigeria Tax Act 2025 bands effective from 1 January 2026: 0% on the first ₦800,000 of taxable income, then 15%, 18%, 21%, 23% and 25% on progressively higher bands. This replaces the old Consolidated Relief Allowance system. The old 7%–24% bands are no longer in use.

Employer Cost Breakdown

Click "Employer Cost" to see what your employer actually pays to have you on payroll. Beyond your gross salary, employers must contribute: 10% pension (employer share), 1% NSITF (National Social Insurance Trust Fund) and 1% ITF (Industrial Training Fund, for companies with 5 or more employees). For a ₦500,000/month employee, the true employer cost is approximately ₦560,000/month.

Salary Structure

Nigerian salaries are typically broken into basic, housing allowance and transport allowance. Only the basic salary is used to calculate NHF (2.5% of basic) and NHIS (5% of basic). The pension calculation uses 8% of gross. The basic salary percentage affects how much NHF and NHIS are deducted — a higher basic percentage means higher NHF and NHIS but the same pension.

Frequently Asked Questions

Enter your gross monthly salary, select your basic salary percentage, tick the applicable deductions and click calculate. The calculator deducts PAYE tax (using the 2026 NTA bands), employee pension (8% of gross), NHF (2.5% of basic) and optionally NHIS (5% of basic) to show your net take-home. For the most accurate result, check with your payroll team which deductions apply to your employment.
Gross salary is your full salary before any deductions. Net salary (take-home pay) is what you actually receive after PAYE tax, pension contributions, NHF and any other deductions. In Nigeria, the gap between gross and net depends on your income level — low earners may lose 8–10% to deductions, while higher earners in the ₦5m+ annual range can lose 25–30%.
NSITF (National Social Insurance Trust Fund) is a 1% contribution that employers pay to fund workplace accident insurance for employees. It is entirely the employer's cost — it does not reduce your take-home pay. Only the employee pension (8%), NHF (2.5% of basic) and NHIS (5% of basic) are deducted from the employee's salary. The ITF (Industrial Training Fund) is similarly employer-only.
Use the Net → Gross mode and enter 300,000. The calculator uses binary search to find the gross salary that produces exactly ₦300,000 net after all selected deductions. With standard deductions (pension + NHF), you typically need approximately ₦340,000–₦360,000 gross to clear ₦300,000 net, depending on your basic salary percentage.
Under the old law, many calculators used 1.75% of gross for NHIS. The current National Health Insurance Authority rate for employees is 5% of basic salary. The employer also contributes 10% of basic salary. Not all employers participate in NHIS — it is mandatory for federal public servants and organisations with 10 or more employees. Tick the NHIS checkbox only if your employer deducts it.

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