How to read your Nigerian payslip, line by line
Gross, PAYE, pension, NHF, net, YTD — what each line on a Nigerian payslip means, and how it's worked out.
A payslip looks busy, but it's really just one sum: what you earned, minus what was deducted, equals what you take home. Here's every line, in order.
The earnings
At the top are your earnings — basic salary plus allowances like housing and transport. Added together they make your gross pay. Some allowances are taxable and some aren't, and a few (basic, housing, transport) form the base for your pension.
The statutory deductions
- Pension — 8% of Basic + Housing + Transport (your employer adds 10% on top)
- NHF — 2.5% of gross, where it applies
- PAYE — income tax, worked out on what's left after reliefs
These come out before you see your net pay. Pension and NHF also reduce the income your PAYE is calculated on.
How PAYE is found
Your taxable income is gross minus pension, NHF and reliefs like rent relief. PAYE is then charged in bands — the first ₦800,000 a year is tax-free, then 15% to 25% on higher slices. Because it's banded, your effective rate is always lower than the top band you reach.
Net pay and YTD
Net pay is gross minus pension, NHF, PAYE and any loan or other deductions — the amount that hits your account. The year-to-date (YTD) figures show your running totals for the year, which matter at year-end for your tax return.
If your net pay ever looks wrong, check the base your pension is on — it should be Basic + Housing + Transport, not your whole gross.
Want to see the maths on your own number? Try our free PAYE calculator — it uses exactly these rules.
See it on your own payroll
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