Payroll: structures, salary rules and Nigerian PAYE

Salary structure types and structures, rules and categories, inputs, work entries, payslip batches, accounting, and computing PAYE, pension and NHF under the Nigeria Tax Act 2025.

In this lesson

Structures, rules, categories and inputs
Nigeria PAYE, pension, NHF under NTA 2025
Running, posting and remitting payroll

Key points

Structure type → structure → ordered salary rules with categories
Rules compute with fixed, percentage or Python using contract, categories, worked_days, inputs
NTA 2025 bands: 0% / 15% / 18% / 21% / 23% / 25%; first ₦800k free; rent relief 20% capped ₦500k
Pension 8% employee / 10% employer; NHF 2.5%; batch, post, pay, remit

Real-world example

A factory client's payslips still used the old Consolidated Relief Allowance in January 2026. The consultant rebuilt the PAYE rule with the NTA 2025 bands, added a rent-relief input requiring documentation, tested ten employees against the client's tax adviser's spreadsheet to the naira, and documented the rule in plain language for the auditor.

Questions and answers

Gross ₦600,000/month, basic+housing+transport ₦480,000. Employee pension?

8% × ₦480,000 = ₦38,400 per month.

NHF on basic of ₦300,000/month?

2.5% = ₦7,500.

Rent of ₦3,000,000/year: rent relief?

20% = ₦600,000, capped at ₦500,000.

Read the full lesson, worked example and quiz