Salary Calculator Nigeria

Convert hourly wage to yearly salary (and back) for workers in Nigeria. Free calculator with tax context. Enter your rate or salary below—use figures in Naira (₦). PAYE (Pay As You Earn) income tax and pension (8% employee) affect take-home pay. Use this tool for budgeting, comparing offers, or planning expenses in Lagos, Abuja, or elsewhere. Connect with our pay frequency and monthly budgeting guides.

Nigeria Salary Converter

Enter amount in ₦. Based on 40 hours/week, 52 weeks. Tax and pension are illustrative.

Hourly rate

Annual salary

Results

Gross annual $0

Gross hourly $0

Est. tax + pension (approx.) $0

          Net annual (approx.)
          $0
        

Enter your amount in ₦—the formula is the same. Results display in USD; interpret as Naira. Nigeria PAYE and pension differ. For a full breakdown at ₦5,000/hr, see ₦5,000 per hour after tax Nigeria.

Salary Conversion in Nigeria

How Salary Conversion Works in Nigeria

In Nigeria, full-time work is typically 40 hours per week under the Labour Act (8 hours/day). Using 40 hours × 52 weeks = 2,080 hours per year, you convert hourly to annual by multiplying: hourly rate × 2,080. For example: ₦5,000 per hour × 2,080 = ₦10,400,000 per year gross. Nigeria uses PAYE (Pay As You Earn) progressive income tax: 7% on first ₦300,000; 11% on next ₦300,000; 15%, 19%, 21%, and 24% on higher bands. Pension is 8% employee (employer adds 10%). CRA (Consolidated Relief Allowance) reduces taxable income. Our calculator uses a simplified illustrative rate; actual take-home depends on your bracket and allowances. See Gross vs net salary for why gross and take-home differ. For budgeting, use $60k monthly and pay frequency guides.

Example With Real Numbers

Chidi earns ₦6,000 per hour in Lagos. His gross annual salary is ₦6,000 × 2,080 = ₦12,480,000. After pension (8%) and PAYE, he might keep around ₦9,100,000–9,300,000 per year. That's about ₦758,000–775,000 per month. Monthly pay is standard in Nigeria. Cost of living in Lagos and Abuja is higher than in other states; budgeting with net pay is essential. Use our ₦5,000 per hour after tax Nigeria page for a detailed breakdown. See Compare Salary Offers Guide and Salary Negotiation Guide when evaluating offers.

Common Pay Frequencies in Nigeria

Monthly (12 paydays) is standard. Some employers pay biweekly or weekly. To get monthly gross from annual: divide by 12. For budgeting and cost-of-living planning, see Weekly vs biweekly vs monthly pay and $50k monthly for structure.

What Can Change Take-Home Pay

PAYE bracket (7% to 24%), CRA and other reliefs, pension (8% employee), NHF (National Housing Fund) if applicable, union dues, and voluntary deductions affect your paycheck. Consult FIRS (Federal Inland Revenue Service) or a tax adviser. Use Salary Comparison Guides for side-by-side numbers. For cost-of-living context, compare to $60k after tax and $60k monthly.

When This Calculator Is Useful

Use it when comparing a Nigerian job offer (hourly vs salary), planning a budget in Lagos or Abuja, or negotiating pay. Helpful for oil and gas, tech, finance, and professional workers. Use our Compare Salary Offers Guide and Salary Negotiation Guide when evaluating offers. Connect with Salary Comparison Guides and $50k monthly for budgeting examples.

FAQ

How do I convert hourly pay to yearly salary in Nigeria?

Multiply your hourly rate by 2,080 (40 hours × 52 weeks). ₦5,000/hr × 2,080 = ₦10,400,000 per year gross.

What is the standard full-time work week in Nigeria?

40 hours per week is typical. The Labour Act allows up to 8 hours/day.

Does Nigeria have income tax on salaries?

Yes. Nigeria uses PAYE (7% to 24% progressive). Pension (8% employee) is also deducted. CRA applies.

How often do Nigerian employers pay?

Monthly is standard. Some pay biweekly or weekly.

What reduces take-home pay in Nigeria?

PAYE income tax, pension (8% employee), and voluntary deductions (NHF, union dues).

Where can I get a detailed Nigeria after-tax breakdown?

See our ₦5,000 per hour after tax Nigeria page for a full breakdown with tables, cost-of-living notes, and budgeting examples.

This calculator provides an estimate only and is not tax or financial advice. Nigeria PAYE and pension rates change. Consult FIRS or a tax adviser. Last updated: March 2025.