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Nigeria pension calculator
Under the Pension Reform Act 2014 the employee contributes 8% and the employer 10%, both on basic + housing + transport — not on total gross pay, which is the mistake that inflates most estimates.
Result
Fill in the fields to see your result.
Formula
Pensionable = basic + housing + transport
Employee = 8% × pensionable
Employer = 10% × pensionable How it works
The Pension Reform Act 2014 defines the contribution base as basic, housing and transport. Calculating on total gross is the most common error and inflates both sides of the contribution.
Example
Basic ₦2,400,000 + housing ₦600,000 + transport ₦400,000 = ₦3,400,000 pensionable. Employee 8% = ₦272,000. Employer 10% = ₦340,000.
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Where these rates come from
These rates come from a professional tax summary (PwC, retrieved 8 August 2026), not from the text of the Act. They are the same rates our payroll system uses. Check them against the Nigeria Tax Act 2025 before you file anything.
PwC Worldwide Tax Summaries - Nigeria, taxes on personal income (Nigeria Tax Act 2025 bands) · retrieved 2026-08-08 · rule ng-pension-employee-2014,
effective 2014-07-01. This is an estimate, not a filed payroll result.
Run this for a whole team, every month
Peoplyn runs Nigerian payroll on these same rules — payslips, pension schedules and remittance. If it is the invoicing and getting paid side you need, that is BillCrop.
Peoplyn calculates payroll. Your business still makes the payment.