How much is the minimum wage in Nigeria?
₦70,000 per month
National Minimum Wage Act 2024 · in force since July 2024 · next statutory review due 2027 · applies to employers with 25 or more employees.
The Act raised the floor from ₦30,000 to ₦70,000 and shortened the review cycle from five years to three. Nigeria sets a monthly wage, not an hourly rate, so the figure is a floor on what a full-time employee is paid each month before their own deductions. Employers below 25 staff are technically exempt, but in practice almost nobody hires below ₦70,000 in Lagos, Abuja or Port Harcourt.
The statutory add-ons beside the wage
Minimum wage is one line on a payroll. These are the contributions that sit beside it, who carries each one, and what they are calculated on.
| Item | Rate | Paid by |
|---|---|---|
| National minimum wage | ₦70,000 per monthThe floor for basic pay under the National Minimum Wage Act 2024. Employers with fewer than 25 staff are exempt in law, but most pay it anyway to hire and keep people. | Employer |
| Employer pension | Minimum 10% of basic + housing + transportThe employee adds 8%, giving a combined 18%. It is never calculated on gross pay. Employers with fewer than 3 staff are outside the mandatory scheme. | Employer |
| NSITF (Employee Compensation) | 1% of total monthly payrollCovers workplace injury, disability and death benefits. Employer-only, with penalties and back-payment on audit. | Employer |
| ITF (Industrial Training Fund) | 1% of annual payrollApplies where you have 5 or more staff or turnover of ₦50 million and above. Due once a year by 1 April. | Employer |
| NHF (National Housing Fund) | 2.5% of basic — employee opt-inDeducted from the employee where they elect in. You remit it and keep the written election on file. | Employee |
| PAYE | 0% at this levelFrom 1 January 2026 the first ₦800,000 of annual income is tax-free, so a worker on ₦70,000 a month (₦840,000 a year) pays tax on very little — and nothing at all after reliefs in most cases. | Employee |
To see what PAYE looks like at any salary under the 2026 bands, use the free Nigeria PAYE calculator or read how to calculate PAYE in Nigeria.
What ₦70,000 actually costs an employer
One full-time employee on the minimum wage, assuming basic, housing and transport make up 70% of pay and ITF applies.
| Line | Monthly | Annual |
|---|---|---|
| Monthly wage | ₦70,000 | ₦840,000 |
| Basic + housing + transport (assume 70%) | ₦49,000 | ₦588,000 |
| Employer pension at 10% | ₦4,900 | ₦58,800 |
| NSITF at 1% of payroll | ₦700 | ₦8,400 |
| ITF at 1% of payroll | ₦700 | ₦8,400 |
| Employer total | ₦76,300 | ₦915,600 |
That is roughly 9% above the wage itself — and it excludes HMO cover, leave allowance, tools and the cost of hiring. For the full picture at a higher salary, see the real cost of employing staff in Nigeria.
Rules employers keep getting wrong
- ₦70,000 is a monthly floor on wages, not a target — it applies before any allowance you choose to add on top.
- It is reviewed every three years under the 2024 Act, so build a review point into your salary structure now.
- Part-time staff working under 40 hours a week, commission-only agents and seasonal workers sit outside the statutory floor, but you still owe a written contract.
- Paying below the floor where it applies is an offence, and the arrears are recoverable — there is no informal waiver.
- Casual and outsourced staff are counted by the courts on the substance of the arrangement, not the label on the contract.
- Keep payslips showing basic, housing and transport separately, or your pension and PAYE figures cannot be defended on audit.
Four costly mistakes
Treating ₦70,000 as gross including allowances that are actually reimbursements.
Assuming the under-25-staff exemption removes pension, NSITF and ITF obligations — it does not.
Raising the lowest earners to ₦70,000 and leaving the next grade untouched, compressing the whole salary structure.
Forgetting the roughly 9% employer add-on above wage, so the payroll budget lands short by mid-year.
Get the payroll numbers right in minutes
Our free PAYE calculator applies the 2026 bands, reliefs and the ₦800,000 tax-free threshold to any salary, so you can quote a take-home figure with confidence before an offer goes out.
Open the PAYE calculatorFrequently asked questions
How much is the minimum wage in Nigeria?
₦70,000 per month, set by the National Minimum Wage Act 2024. It remains the national floor in 2026 and is due for review every three years.
Does the ₦70,000 minimum wage apply to every employer?
In law it applies to employers with 25 or more employees. Smaller employers are exempt from the statutory floor, but most Nigerian businesses apply it anyway because they cannot hire below it.
Is ₦70,000 the minimum wage before or after tax?
It is the minimum wage payable, before employee deductions such as their 8% pension contribution or NHF. From 1 January 2026 the first ₦800,000 of annual income is tax-free, so PAYE on this level of pay is negligible.
What does an employee on minimum wage actually cost an employer?
About ₦76,300 a month, or ₦915,600 a year. On top of the ₦70,000 wage you add employer pension at 10% of basic, housing and transport, NSITF at 1% of payroll, and ITF at 1% of annual payroll where it applies.
Is minimum wage paid monthly or hourly in Nigeria?
Monthly. Nigeria sets a monthly national minimum wage rather than an hourly rate, and salaries are normally paid monthly in arrears.
When will the Nigerian minimum wage be reviewed again?
The National Minimum Wage Act 2024 shortened the review cycle to every three years, which places the next statutory review in 2027.
Keep going
- The real cost of employing staff in Nigeria — every cost above salary, with a ₦300,000-a-month worked example.
- How to calculate PAYE in Nigeria (2026 bands) — the five-step calculation and the new bands.
- Nigerian labour laws in 2026 — contracts, leave, notice and termination.
Need your payroll structure reviewed properly? Talk to SteadyStrides.