Real example
Imagine Chidi earns ₦300,000 per month at his Lagos job. His contract says ₦300,000 but that is not what he receives. After the government takes its tax, and after his pension savings are set aside, Chidi actually receives about ₦240,500 in his account. Use the calculator below to see your own number.
How much does your employer pay you per month?
This is the full amount your employer agreed to pay you — the number on your offer letter or contract, before anything is removed. It is sometimes called your "gross salary".
Enter the full amount before any deductions — the number on your offer letter
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How much you actually take home
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per month
Where the rest of your money goes
Money you take home
Goes directly into your bank account
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Government income tax (PAYE)
This is the tax the government takes from your salary every month. Under Nigeria's new tax law (NTA 2025), the first ₦800,000 you earn per year is completely tax-free. Above that, higher earners pay progressively more — up to 25% on very high incomes.
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Pension savings (8%)
By Nigerian law, 8% of your salary is saved in a retirement account every month. This money belongs to you — it is not taken away, it is kept for when you retire.
Saved for your retirement — still your money
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Housing fund (NHF, 2.5%)
2.5% of your basic salary goes into the National Housing Fund. This gives you access to low-cost government housing loans in the future. It is also refundable if you never use it.
Compulsory housing contribution — also refundable
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How your salary is split
Frequently asked questions
How does this take-home pay calculator work?
Enter your monthly gross salary — the full amount your employer agreed to pay you before any deductions. The calculator applies Nigeria's current PAYE tax bands under the Nigeria Tax Act (NTA) 2025, effective January 2026: 0% on the first ₦800,000 of taxable income, then 15%, 18%, 21%, 23%, and 25% on higher bands. It also deducts your pension contribution (8%) and NHF (2.5% of basic), then shows you exactly what lands in your account.
What is PAYE tax and why does the government take it?
PAYE stands for Pay As You Earn. It is the income tax your employer removes from your salary before paying you. The Nigerian government uses this money to fund roads, hospitals, schools, and other public services. People who earn more pay a higher percentage. Your employer sends the money directly to the government every month on your behalf.
What is the pension deduction?
By Nigerian law, 8% of your monthly gross salary is moved into a retirement savings account (RSA) managed by a Pension Fund Administrator (PFA) of your choice. Your employer also adds 10% on top — so your total retirement pot grows by 18% of your salary each month. This money is not lost — it is saved in your name and you can access it when you retire or leave formal employment.
What is the NHF deduction?
NHF stands for National Housing Fund. It is a compulsory 2.5% deduction from your basic salary (estimated here as 40% of gross), paid into a fund managed by the Federal Mortgage Bank of Nigeria. The purpose is to help Nigerian workers access affordable housing loans. Like your pension, this money is refundable if you never take a housing loan.
Why is my actual take-home different from this calculator?
This calculator uses standard statutory deductions. Your actual pay slip may differ if your employer uses a different basic/housing/transport salary split, if you have extra deductions like a cooperative loan or union dues, or if your company has negotiated different arrangements. Use this as a helpful guide and compare with your own pay slip for the exact figure.
Is this calculator really free?
Completely free, with no sign-up required. NairaCalc is built to help Nigerians make better financial decisions without any cost.