What is the minimum wage in Nigeria in 2026?

The National Minimum Wage is ₦70,000 per month as of 2024, following the amendment to the National Minimum Wage Act. After PAYE and pension deductions, a minimum wage earner typically takes home around ₦62,000–₦64,000 per month.

How do I calculate my hourly rate from my monthly salary in Nigeria?

Hourly rate = Annual salary ÷ (Working weeks per year × Working days per week × Hours per day). For a standard setup: Annual ÷ (52 × 5 × 8) = Annual ÷ 2,080. So ₦350,000/month (₦4.2M/year) works out to about ₦2,019 per hour.

What is a good salary in Nigeria in 2026?

Salaries vary widely by sector and location. Tech/software roles: ₦300,000–₦2,000,000/month. Banking/finance: ₦250,000–₦1,500,000/month. Oil and gas: ₦400,000–₦3,000,000+/month. Teaching: ₦70,000–₦200,000/month. A ₦350,000–₦500,000/month gross salary is considered comfortable middle-class in major cities like Lagos and Abuja.

Salary Calculator Nigeria 2026

Convert gross to net salary, work backwards from desired take-home pay, or calculate your hourly rate — all using the latest 2026 PAYE bands.

Gross Monthly Salary

₦

Include NHF

Basic (%)

Housing (%)

Transport (%)

Net Monthly Take-Home

₦292,981

Monthly PAYE Tax

₦24,644

Pension (8%)

₦28,000

NHF (2.5%)

₦4,375

Net Annual

₦3,515,775

Effective Tax Rate

7.0%

How to Use This Calculator

Gross to Net Tab

Enter your gross monthly salary — what your employer pays before deductions. Toggle NHF on or off. The calculator instantly shows your net take-home, monthly PAYE tax, pension deduction, effective tax rate and annual net income. Use "More options" to adjust the salary structure split if your payslip breaks it down differently.

Net to Gross Tab

Use this when negotiating a salary. Enter your desired net take-home — say ₦300,000/month — and the calculator works backwards to tell you the gross salary you need to ask for. This is especially useful when comparing job offers across companies with different package structures.

Hourly Rate Tab

Enter your annual salary, working days per week, hours per day, and leave allowance. The calculator outputs your effective hourly, daily, and weekly rates — useful for freelancers quoting project rates or comparing employment to consultancy.

The Formula

Gross to Net: Net Monthly = (Gross Annual − Pension − NHF − Annual Tax) ÷ 12 (See PAYE Calculator for full tax formula) Net to Gross (iterative): Binary search over [target_net, target_net × 4] until computePAYE(gross).netMonthly ≈ target_net (within ₦1) Hourly Rate: Working Weeks = 52 − Leave Weeks Working Hours = Working Weeks × Days/Week × Hours/Day Hourly Rate = Annual Salary ÷ Working Hours Daily Rate = Hourly Rate × Hours/Day Weekly Rate = Daily Rate × Days/Week

The Net-to-Gross calculation uses a binary search algorithm because the PAYE function is not easily invertible — the tax formula has multiple bands and non-linear deductions. The search converges in under 80 iterations to within ₦1 accuracy.

Example

Gross to Net: ₦350,000/month

Gross Monthly₦350,000

PAYE Tax (monthly)-₦24,619

Pension (8%)-₦28,000

NHF (2.5% Basic)-₦4,375

Net Monthly Take-Home≈ ₦293,006

Net to Gross: Targeting ₦300,000/month net

Desired Net Monthly₦300,000

Required Gross Monthly≈ ₦358,000

Additional to ask for≈ ₦58,000

Hourly Rate: ₦4,200,000/year (₦350K/month)

Working hours/year (5d×8h×48wk)1,920 hrs

Hourly Rate≈ ₦2,188/hr

Daily Rate (8 hrs)≈ ₦17,500/day

Nigerian Salary Benchmarks 2026

Understanding typical salaries across sectors helps you know where you stand and how to negotiate:

Entry Level (0–3 years experience)

Technology/Software: ₦150,000 – ₦400,000/month
Banking & Finance: ₦120,000 – ₦250,000/month
FMCG / Manufacturing: ₦100,000 – ₦200,000/month
Teaching (public school): ₦70,000 – ₦120,000/month
Healthcare (nurse/doctor intern): ₦90,000 – ₦250,000/month

Mid Level (3–7 years)

Software Engineer: ₦300,000 – ₦1,200,000/month
Bank Officer (Officer to Manager): ₦250,000 – ₦600,000/month
Oil & Gas (onshore): ₦400,000 – ₦1,500,000/month
Telecoms Engineer: ₦350,000 – ₦800,000/month
Accountant/Finance Analyst: ₦200,000 – ₦500,000/month

Senior / Management

Senior Software Engineer / Tech Lead: ₦800,000 – ₦3,000,000+/month
Bank Manager: ₦600,000 – ₦2,000,000/month
Finance Director: ₦1,500,000 – ₦5,000,000+/month

Note: Remote workers at international companies often earn in USD and may receive ₦1,000,000–₦5,000,000+/month equivalent, significantly above local market rates.

FAQ

The National Minimum Wage was increased to ₦70,000 per month in 2024 following the National Minimum Wage (Amendment) Act. State governments and private employers are expected to comply. A minimum wage earner takes home approximately ₦63,000–₦64,000 after pension — PAYE is typically zero at this income level due to the CRA and ₦800,000 zero-rate band.

Use the Net to Gross tab. For example, if you want ₦300,000/month in your account, the calculator will show you need about ₦358,000 gross. When negotiating, frame your request around the gross figure. Also discuss whether your employer covers pension (most do the 10% employer contribution), as this affects your total package value.

Yes, 13th month bonuses (Christmas bonuses, performance bonuses) are taxable income under PAYE. They are typically added to your December (or payment month) gross salary, which can push you into a higher tax band for that month. Some employers spread bonuses to avoid tax bracket spikes.

Start with your desired annual income, add 30–50% for overheads, unpaid time, and self-employment taxes. Then divide by your billable hours (typically 1,000–1,400 per year for consultants, far less than employed workers). So if you want ₦6M/year net and bill 1,200 hours, your rate should be at least ₦5,000/hour. The Hourly Rate tab helps you benchmark against equivalent employed salaries.

Standard deductions: PAYE tax, pension (employee 8%), NHF (2.5% of basic). Optional: cooperative society deductions, union dues, salary advance repayments, health insurance (HMO premium). If deductions not listed on your payslip significantly reduce your take-home, request a detailed payslip from your HR department — employers are legally required to provide one.