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The short answer
A Nigerian payslip should show gross pay broken into basic, housing, transport and other allowances, then each deduction: PAYE, 8% employee pension, NHF where the employee contributes, and any other deduction, with net pay, the period and the employer's and employee's tax and pension IDs. At year end, the employer files a return of all emoluments with the state IRS by 31 January and gives each employee a record of pay and tax deducted, which they use for tax clearance, visas and loans.
Remote teams in Nigeria use their payslips more than most US staff do: for rent, car loans, visa applications and bank accounts. If your US company runs Nigerian payroll through a subsidiary or an employer of record, the payslip and the year-end tax record are what your staff will judge you on. Information only, not tax advice.
What the law requires you to give staff
The Labour Act requires an employer to give a worker a written statement of terms within three months of starting work, covering the wage rate and how and when it is paid, hours, holidays and sick pay, with changes notified in writing within one month. The Act does not set out a payslip template, but the deductions on it each come from law, so they need to be visible.
What a Nigerian payslip should show
| Section | Lines |
|---|---|
| Header | Employer name and tax ID, employee name, staff number, pay period, pay date |
| Identifiers | Employee tax ID, pension PIN and PFA, NHF number if contributing |
| Earnings | Basic, housing, transport, other allowances, overtime, bonus, benefits in kind |
| Deductions | PAYE, employee pension (8%), voluntary pension, NHF (2.5%), loans or advances |
| Employer contributions (memo) | Employer pension (10%) and group life, shown for information |
| Totals | Gross pay, total deductions, net pay; year-to-date gross, PAYE and pension |
Showing pay split into basic, housing and transport matters in Nigeria because pension contributions are calculated on monthly emoluments that include at least those three elements. Year-to-date figures help staff check that their tax is right.
Worked example
Example only, using the figures from our PAYE guide: gross ₦500,000; employee pension ₦40,000; PAYE ₦61,700 (after pension and rent relief); net ₦398,300. Employer pension of ₦40,000 appears as a memo line, not a deduction.
Getting payslips right for a remote team
A remote team adds problems a local employer rarely faces. Your payroll may be prepared in the US, approved in one time zone and paid in another, so payslips arrive late or not at all. Set a rule that payslips go out on payday, from the payroll system, as PDFs staff can forward. Use the employee's name exactly as it appears on their bank account and BVN record; a mismatch causes trouble when a landlord or embassy compares the payslip with a bank statement.
Show amounts in naira even if you budget in dollars. If part of the package is set in dollars and converted, state the rate used and its source on the payslip, so staff can check the naira figure that PAYE was calculated on. Correct mistakes with a revised payslip rather than an adjustment hidden in next month's pay, and keep both versions.
Finally, decide who staff should contact with a payroll question: your finance lead, the EOR's support desk or your Nigerian accountant. A named contact and a two-day response promise prevent most complaints.
The year-end tax record
According to PwC's summary (reviewed 29 May 2026), employers file an annual return of all emoluments paid to employees by 31 January each year, alongside the monthly PAYE remittances due by the 10th. States use their own forms and portals for this return. Many staff still call the individual record a "tax card" or tax deduction card; today it is usually a statement or evidence of PAYE paid through the state IRS portal.
Your staff need that record because a tax clearance certificate from their state IRS depends on tax paid being on record, and tax clearance is commonly asked for in property, visa and contract dealings. Lost remittance receipts are the most common reason an employee cannot get one.
Records to keep
- Monthly payroll registers and payslips for every employee.
- State IRS receipts for each PAYE remittance and the annual return.
- PFA remittance schedules and receipts.
- Evidence for reliefs claimed, such as rent receipts.
- Staff tax IDs and pension PINs.
The Nigeria Tax Administration Act 2025 requires books and records sufficient to work out tax liability to be kept in English for at least six years after the year of assessment.
Monthly and yearly checklist
- Payday: issue payslips the same day.
- Within 7 working days: remit pension and send staff the PFA schedule.
- By the 10th: remit PAYE; file the receipt.
- By 31 January: file the annual emoluments return; give each employee a year-end pay and tax statement.
For all deadlines in one place, see a statutory deductions calendar and the Ledger's payroll filing deadlines in Nigeria, Ghana and Kenya.
Where Pryme fits
Through Pryme's partnership with VerifyDoc.ai, a Pryme customer can generate a regular or a verifiable statement or receipt, and anyone can check a verifiable one is genuine and unaltered. That helps staff who are asked to prove salary payments to a landlord or embassy; see receipts and payroll.
Questions people ask
What should a Nigerian payslip contain?
Earnings split into basic, housing, transport and other allowances; deductions for PAYE, pension and any NHF; net pay; identifiers such as tax ID and pension PIN; and year-to-date totals.
When is the annual PAYE return due in Nigeria?
PwC's summary says employers file the annual return of all emoluments by 31 January each year.
What is a tax card in Nigeria?
A common name for an employee's record of PAYE deducted. Today it is usually a statement of tax paid through the state IRS, used for tax clearance.
How long should payroll records be kept?
The Nigeria Tax Administration Act 2025 requires tax records to be kept for at least six years after the year of assessment.
Sources
- Labour Act, Cap L1 LFN 2004 (text) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual tax administration (reviewed 29 May 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- PenCom: Frequently Asked Questions, 2023 edition · 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.