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The short answer
Nigeria's Labour Act does not fix a weekly hours limit or an overtime rate. Section 13 says normal hours are set by agreement, collective bargaining or an industrial wages board, and that any time worked beyond those normal hours is overtime; the rate is whatever the contract or collective agreement says. The Act also requires a rest break of at least one hour in total for a day of six hours or more, and a weekly rest day of at least 24 consecutive hours.
What section 13 actually says
Many people expect the law to say "40 hours a week" and "time and a half". Nigeria's Labour Act does neither. Read section 13 as four rules:
- Normal hours are agreed. They are fixed by mutual agreement between employer and worker, by collective bargaining, or, where there is no collective bargaining, by an industrial wages board (s.13(1)).
- Beyond normal hours is overtime. "Hours worked outside the normal hours ... shall constitute overtime" (s.13(2)). The Act does not set the pay rate for it.
- Breaks. Where a worker is at work for six hours or more in a day, the work must be interrupted by rest intervals of at least one hour in total, subject to provisos (s.13(3)).
- Weekly rest. In every period of seven days a worker is entitled to at least one rest day of not less than 24 consecutive hours. Where that rest is reduced, the worker gets corresponding time off or pay at the overtime rate (s.13(7)).
Breaking the break and rest-day rules is an offence under section 21, though the fines in the Act (up to ₦800, or ₦1,500 for a repeat offence) are small by today's values.
Where the overtime rate comes from
Because the Act leaves the rate open, look in this order:
- Your written terms. Section 7 requires the employer to give you, within three months of starting, a written statement that includes terms on hours of work and how pay is calculated. If overtime is paid, the rate should be there.
- A collective agreement, if your workplace is unionised. Many set specific rates for weekday, weekend and public holiday overtime.
- Company handbook or policy, if it forms part of your contract.
- Custom and practice, where the employer has consistently paid a rate over time. This is harder to prove; keep payslips.
Who the protections do not cover
The Labour Act's definition of "worker" in section 91 excludes people exercising administrative, executive, technical or professional functions. In practice, managers, professionals and senior technical staff rely on their contracts for hours and overtime, not on the Act. Clerical and manual workers, such as drivers, cleaners, factory hands and security guards, are the main group the Act protects.
Worked example: calculating overtime (illustration only)
Assume a contract (example terms) that pays ₦150,000 a month for 40 normal hours a week, and overtime at 1.5 times the hourly rate.
| Step | Calculation | Result |
|---|---|---|
| Annual pay | ₦150,000 × 12 | ₦1,800,000 |
| Normal hours a year | 40 × 52 | 2,080 hours |
| Hourly rate | ₦1,800,000 ÷ 2,080 | ₦865.38 |
| Overtime hourly rate | ₦865.38 × 1.5 | ₦1,298.08 |
| 10 overtime hours in a month | ₦1,298.08 × 10 | ₦12,980.77 |
| Month's gross pay | ₦150,000 + ₦12,980.77 | ₦162,980.77 |
The 1.5 multiplier is only an example of a common contract term. Your rate may be different, flat, or nil. Overtime is part of your pay for the month and passes through PAYE with the rest of your employment income (see the 2026 PAYE bands); our payslip guide shows how.
Working through leave is not overtime
A related question comes up often: can an employer pay you extra instead of giving you your annual leave? Section 18 of the Labour Act says no while the contract is running. After 12 months' continuous service, a worker is entitled to at least six working days' paid holiday, and it is unlawful for the employer to pay wages in place of that holiday. A worker who leaves after six to twelve months' service is owed a proportionate payment instead.
Sick days work differently again. Section 16 entitles a worker to pay for up to 12 working days a year of certified temporary illness, subject to conditions. Neither leave nor sick pay is a substitute for overtime, and overtime does not cancel them.
Overtime and the minimum wage
For employers covered by the National Minimum Wage (Amendment) Act 2024, the floor is ₦70,000 a month. As Mondaq described it in August 2024, the minimum is the minimum total paid monthly to the lowest-paid worker. A long working week does not lower that floor, but overtime pay is not a way to reach it either: the normal-hours pay should already be at or above ₦70,000 where the Act applies. Workers in factories should read our guide to factory pay and overtime.
What to do if overtime is not paid
- Write down every overtime shift: date, start and end time, who asked you to stay.
- Check your written terms, collective agreement or handbook for the rate.
- Raise it in writing with HR or your manager and keep a copy.
- If it is not resolved, the steps in our guide to unpaid salary apply to unpaid overtime too.
Where Pryme fits
Employers using Pryme payroll can add overtime as its own pay line, so staff see it separately on each payslip.
Questions people ask
What is the normal working hours in Nigeria?
The Labour Act does not set a fixed number. Normal hours are agreed in the contract, by collective bargaining or by an industrial wages board.
Is overtime compulsory to be paid in Nigeria?
Time beyond normal hours is overtime under s.13(2) of the Labour Act, but the Act does not set a rate. Payment depends on your contract or collective agreement.
How do I calculate overtime pay?
Work out your hourly rate from annual pay and normal annual hours, multiply by your contract's overtime multiplier, then by the hours worked.
Do managers get overtime in Nigeria?
The Labour Act's definition of worker excludes administrative, executive, technical and professional staff, so managers rely on their contracts.
Sources
- Labour Act, Cap L1 LFN 2004 (PLAC Laws of Nigeria) · accessed Oct 2026
- Mondaq (Pavestones Legal): The National Minimum Wage (Amendment) Act 2024, key updates for employers (28 Aug 2024) · accessed Oct 2026
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