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The short answer
Under section 18 of the Labour Act, a worker is entitled to at least six working days of paid holiday after 12 months of continuous service. The Act covers "workers", a term that excludes people in administrative, executive, technical or professional roles, whose leave depends on their contract. Most employers give more than the statutory minimum in their contracts, and the contract figure then applies.
The legal minimum
Section 18(1) of the Labour Act (Cap L1, Laws of the Federation 2004) gives a worker the right to a holiday with full pay of at least six working days after every 12 months of continuous service. Section 18(3) makes it unlawful to pay a worker in place of the holiday while the contract continues. In other words, the leave is meant to be taken, not cashed out each year.
Six working days is a floor. The Act does not stop an employer from offering more, and most written contracts do.
Who the Act covers
The Labour Act applies to "workers" as defined in section 91. That definition leaves out people exercising administrative, executive, technical or professional functions, whether as public officers or otherwise. In practice, the Act protects clerical and manual staff such as drivers, cleaners, shop assistants, factory hands, security staff and similar roles.
Managers, accountants, engineers, lawyers and other professionals fall outside the Act's definition. Their annual leave is whatever their contract or staff handbook says. If the contract is silent, the position is unclear and worth resolving in writing.
| Type of staff | Where leave comes from | Minimum |
|---|---|---|
| Clerical or manual worker under the Labour Act | Section 18 plus contract | 6 working days after 12 months |
| Manager, professional, technical or executive staff | Contract or handbook | No statutory floor in the Labour Act |
| Public servants | Public service rules for their tier of government | Set by those rules |
Other leave the Labour Act deals with
- Sick pay: section 16 provides for wages during absence from sickness certified by a registered medical practitioner, up to 12 working days in a year.
- Maternity: section 54 deals with maternity leave, including leave after confinement and a right to at least half pay for a woman with six months' service, as written in the Act.
- Rest day: section 13(7) requires at least one rest day of not less than 24 consecutive hours in every seven days. This is separate from annual leave.
Our separate guides cover maternity leave, sick leave and leave allowance; our employer's payroll guide covers the wider picture.
Common contractual norms
Contracts in Nigeria often give considerably more than six days, frequently rising with seniority or years of service, and many pay a leave allowance when the leave is taken. We have not found an official survey of typical leave days, so treat any figure you hear as a market practice rather than a rule. What matters legally is what your contract says, and for Labour Act workers it can never be less than six working days.
A worked example
Example only. A supermarket hires a cashier on 1 February 2025 and a store manager on the same day. The cashier is a worker under the Labour Act; her contract says 10 working days. The manager's contract says 20 working days. On 1 February 2026 both complete 12 months. The cashier is entitled to 10 working days, because her contract beats the 6-day floor. If her contract had said 4 days, she would still be entitled to 6. The manager gets 20 days under his contract; the Labour Act does not set a floor for him. Neither can be paid cash instead of the leave while employed.
Practical questions employers ask
Can the employer choose when leave is taken?
The Labour Act sets the entitlement but does not spell out a booking procedure. Most employers set one in the handbook: notice required, blackout periods such as month-end or festive peaks, and how many staff in one team can be away at once. Write it down, apply it evenly, and approve or refuse requests in writing.
What about staff who leave before 12 months?
The statutory right arises after 12 months of continuous service, so a worker who leaves at month nine has no Labour Act holiday yet. A contract that grants leave from the start, or pro rata, will usually say what happens to unused days on exit. If yours is silent, decide the rule now rather than at the first resignation.
Steps for employers
- State the annual leave days in each written statement of terms; section 7(1) of the Labour Act requires holidays to be covered within three months of starting.
- Keep a leave record for every employee. The National Minimum Wage (Amendment) Act 2024, as summarised by Mondaq, requires wage records to be kept for three years, and leave records belong in the same file.
- Set a rule for carrying leave over, and apply it consistently.
- On exit, settle accrued but untaken leave as the contract provides; see final pay on resignation.
This is general information on the Labour Act, not legal advice.
Where Pryme fits
Leave pay and leave allowance run through payroll. Pryme Business Accounts include payroll and a Chief of Staff agent that can keep leave reminders and prepare the run for a person to approve (Chief of Staff).
Questions people ask
How many days annual leave is compulsory in Nigeria?
For workers under the Labour Act, at least six working days of paid holiday after 12 months of continuous service (section 18).
Does the Labour Act annual leave apply to managers?
No. The Act's definition of worker excludes administrative, executive, technical and professional roles, so their leave depends on their contract.
Can my employer pay me instead of giving me leave?
For Labour Act workers, section 18(3) makes paying in lieu of the holiday unlawful while the contract continues.
When do I qualify for annual leave in a new job?
Under the Labour Act, after 12 months of continuous service. Many contracts allow leave earlier or pro rata, so check yours.
Sources
- Labour Act, Cap L1 LFN 2004 (PLAC text) · accessed Oct 2026
- Mondaq (Pavestones): National Minimum Wage (Amendment) Act 2024, key updates (28 Aug 2024) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.