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Employer cost calculator

Hiring in Nigeria costs more than the salary. Enter the pay to see the employer's pension and Employees' Compensation Scheme contributions on top.

How it's calculated

Employer pension: at least 10% of monthly emoluments (basic, housing and transport at least).
Employees' Compensation Scheme: 1% of total monthly payroll, paid to the Nigeria Social Insurance Trust Fund.
Cost to the employer is gross pay plus both contributions.

An example

An employee on ₦500,000 a month, with ₦450,000 pensionable, costs ₦550,000: ₦45,000 of pension and ₦5,000 to NSITF.

Frequently asked questions

What does the NSITF contribution cover?

It funds compensation for workers injured at work or who fall ill because of their job, without having to prove the employer was at fault.

Are there other employer costs?

Possibly, depending on your size and sector, such as group life insurance or training levies. This calculator covers pension and NSITF only.

Is the employee's own 8% part of this cost?

No. The employee's pension share comes out of gross pay. Use the net salary calculator to see it.

Key terms

NSITF: Nigeria Social Insurance Trust Fund, which runs the Employees' Compensation Scheme.
Payroll: The total pay of all employees in a month.

Up-to-date official data

Data checked against the official source on 16 October 2026.

We check the official sources automatically, every day.

See all sources

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