Payroll & HR

Run payroll for your entire team in minutes. Not days.

PAYE, pension (8%), NHF (2.5%), NSITF (1%) — all calculated automatically using the Tax Reform Act 2026 bands. Payslips emailed to every staff member. Your SIRS records, ready to export.

⚠ The 2024 Nigeria Tax Reform Act introduced new PAYE bands — including a 0% rate on the first ₦800,000 of annual income. Paycape is fully updated.

May 2026 payroll run
28 staff · ₦12,480,000 gross
Fatima Kabir
Senior Engineer · Gross: ₦650,000
₦441,250
Net pay
Tunde Okafor
Product Manager · Gross: ₦480,000
₦329,800
Net pay
Amaka Nwosu
Designer · Gross: ₦320,000
₦228,640
Net pay
PAYE total
₦1,248,000
Pension
₦998,400
Net payroll
₦8,940,480
Nigerian statutory deductions

PAYE, pension, NHF, NSITF — calculated right. Every single month.

Do you know how many Nigerian businesses are still running payroll using Excel and praying the PAYE calculation is correct? Or paying flat deduction rates because nobody can figure out the marginal relief formula?

Paycape uses the exact Tax Reform Act 2026 marginal tax bands. Pension at 8% (employee) and 10% (employer). NHF at 2.5%. NSITF at 1%. All auto-deducted. All correct. Every month without fail.

PAYE calculated using 2024 marginal tax bands (0–24%)
Employee pension at 8% (minimum), employer at 10%
NHF deduction at 2.5% for eligible employees
NSITF at 1% — deducted and tracked automatically
Payslips generated and emailed to each staff member
SIRS-ready payroll summary report for your accountant
Sample payslip — Fatima Kabir (₦650,000 gross)
Gross salary
₦650,000
PAYE income taxMarginal rate, 2024 bands
− ₦72,083
Pension (8% employee)To PFA
− ₦52,000
NHF (2.5%)To FMBN
− ₦16,250
NSITF (1%)To NSITF
− ₦6,500
Net pay ₦503,167
Employer pension (10%) ₦65,000
Total cost to employer ₦721,500
Tax Reform Act 2026

Nigeria PAYE tax bands (effective 2024)

These are the bands Paycape uses to calculate PAYE for every employee, every month.

0%
₦0 – ₦800K
No PAYE on first ₦800,000 annual income
15%
₦800K – ₦2.2M
On this portion only — not the full salary
19%
₦2.2M – ₦4M
Marginal — only on income in this band
21%
₦4M – ₦8M
Marginal — only on income in this band
24%
Above ₦8M
Maximum rate in Nigeria — not flat on all income

Source: Nigeria Tax Reform Act 2024 · Always consult a qualified accountant for complex scenarios

HR features

More than payroll — a complete HR workspace for your team.

Manage leave requests, track attendance (including via Slack), set up staff roles, and give employees access to their own portal to view payslips and submit expense claims — all from one place.

Leave management
Approve or decline leave requests from dashboard
Attendance tracking
Slack-based check-in and check-out for remote teams
Staff portal
Each employee can view payslips and update details
EWA (Earned Wage Access)
Staff can access earned pay before payday
Role management
7 permission levels — from Owner to Viewer
Contractor payroll
Handle contractor payments separate from staff
Payroll timeline — May 2026
May 25
Payroll run approved
28 staff · ₦12.48M gross processed
May 25
Payslips sent
All 28 staff emailed their payslips automatically
May 28
PAYE remittance due
₦1,248,000 → Lagos SIRS. Export ready.
May 28
Pension remittance due
₦2,246,400 → PFAs. Breakdown by staff ready.
Jun 1
NHF & NSITF due
₦498,240 → FMBN & NSITF. Single export.

"What used to take me and my HR manager two full days every month now takes 20 minutes. Paycape calculates PAYE using the exact marginal rates, deducts pension, NHF, NSITF — and emails every payslip automatically. My accountant loves me now."

Team
Fatima K.
CEO, Northstar Consulting · Abuja · 28 employees
FAQs

Payroll questions Nigerian employers ask

Is Paycape payroll updated for the Tax Reform Act 2026?
Yes. Paycape's payroll engine uses the current PAYE bands introduced by the Nigeria Tax Reform Act 2024, including the 0% band on the first ₦800,000 of annual income. We update the system whenever FIRS or the NASS makes changes to payroll regulations.
Does Paycape calculate PAYE using marginal rates or flat rates?
Marginal rates — correctly. Each employee's annual taxable income is calculated and taxed in bands. Only the income that falls within each band is taxed at that band's rate. This is what the law requires, and it means lower-income employees keep more of their money.
Which state does Paycape remit PAYE to?
PAYE in Nigeria is remitted to the State Internal Revenue Service (SIRS) of the state where your employee works — not FIRS. Paycape generates a payroll summary with the correct amounts per state to make remittance straightforward. You still make the bank transfer directly to your SIRS, but the calculation and documentation is handled by Paycape.
When must I remit PAYE and pension?
PAYE must be remitted to your state's IRS by the 10th of the month following payment. Pension contributions (both employee and employer portions) must be remitted to each employee's Pension Fund Administrator (PFA) within 7 working days of payday. Paycape generates the remittance schedules and export files for both.
Can Paycape handle both full-time staff and contractors?
Yes. Full-time employees go through the standard payroll run with all statutory deductions. Contractors can be paid separately with WHT deduction instead of PAYE. Both are tracked in the same dashboard so you have a complete picture of your total labour costs.

Run Nigerian-compliant payroll in minutes, not days.

Correct PAYE, pension, NHF, NSITF — automatically. Payslips emailed. Remittance records ready. Free to start.

Start for free Try the PAYE calculator