EOR Service in Nigeria

Hire, Onboard and Pay Employees in Nigeria Quickly and Efficiently

Hiring in Nigeria at a glance

CURRENCY
Nigerian Naira (NGN)
working hours
40 hours
public/bank holidays
13 days
capital
Abuja
language
English, Hausa, and Yoruba
date format
DD/MM/YYYY
remote workers
1.2M
tax year
April 1 to March 31
minimum hourly salary
No minimum wage
CURRENCY
Nigerian Naira (NGN)
working hours
40 hours
public/bank holidays
13 days
capital
Abuja
language
English, Hausa, and Yoruba
date format
DD/MM/YYYY
tax year
April 1 to March 31
payroll frequency
Monthly, Bi-weekly, or weekly payroll.
GDP
$477.39 billion USD in 2022

Employer of Record in Nigeria

To streamline your business growth in Nigeria, consider partnering with a trusted global Employer of Record (EOR) like Gloroots. Our experts specialize in employee onboarding, payroll management, and ensuring compliance with Nigeria's diverse rules and regulations. This collaboration allows you to focus on your core business while we handle the complexities of employment and legal compliance in Nigeria.


Why use Nigeria EOR?

Nigeria's thriving economy, skilled workforce, and business-friendly environment make it an appealing destination for business expansion and employment opportunities. However, the country's regulatory complexity and regional variations can pose challenges for setting up and running a business.


Expanding your operations or hiring employees in Nigeria traditionally involves establishing a legal entity, like a subsidiary or branch office. However, this process can be time-consuming and expensive. 


Moreover, Nigeria’s labor laws can be difficult to interpret and comply with, when you enter the market for the first time. For example, the minimum wage changes often to keep up with inflationary trends. Moreover, Nigeria has a robust trade union culture. Workers are free to join trade unions, and there's a long history of labor activism in the country. This means you will have to deal with collective bargaining agreements.


Alternatively, you can hire in Nigeria by opting for a more cost-effective approach through a Nigerian PEO (Professional Employer Organization) or EOR (Employer of Record) like Gloroots. This streamlines your HR activities and allows you to focus on business growth while we handle employment and legal compliance in Nigeria.

EOR Costs in Nigeria

Gloroots offers EOR services for a fixed fee. Our rates remain unchanged, even if your employees receive raises or bonuses. This means you can plan your budget without worrying about unexpected EOR/PEO expenses.

When you work with an EOR / PEO firm like Gloroots in Nigeria, you'll benefit from full transparency, and there are no hidden fees to catch you by surprise.

Key Metrics For Foreign Employers 

The table below depicts key indicators from the Global Talent Competitiveness Report for you to consider while hiring from Nigeria.

Factors Global Ranking Interpretation
Rule of law 113 Indicates effectiveness of law enforcement
Labour-employer cooperation 95 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 76 Indicates average QS rankings
Labour productivity per employee 96 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 111 Indicates findability of skilled talent
Workforce with tertiary education 82 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Nigeria.

Why work in Nigeria ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Nigeria

Building a successful team involves finding the right talent at the right moment and for the right roles. In Nigeria, managing compliance, payroll, taxes, and benefits can be a complex task for employers. The intricacies of Nigeria's employment regulations can make staying compliant a real challenge.

This is where Gloroots,with our global Employer of Record (EoR) service, comes in. With Gloroots, you can offload the burdens of payroll, tax, benefits, and compliance, allowing you to focus on what truly matters: your employees and the growth of your company. We've got the complexities of employment regulations covered, ensuring you have a seamless experience as you expand your business in Nigeria.

Risks of misclassification

In Nigeria, "misclassification of employees" occurs when employers incorrectly classify their workers. This could involve labeling a worker as an independent contractor or excluding them from specific employment laws and benefits, even when they should rightfully be considered employees entitled to legal protections and benefits.

Choosing a PEO/EOR like Gloroots in Nigeria helps mitigate the risks associated with employee misclassification. These experts ensure compliance with labor laws, proper worker classification, accurate payroll management, and comprehensive benefits, allowing businesses to focus on core operations while entrusting employment-related responsibilities to experienced professionals, ensuring compliance and reducing risks in Nigeria.

Contact Us

Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

Calculate Now

Employing in Nigeria

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer contribution:

Payroll Tax Rate Description
Pension 10.00% This applies to employers with a workforce exceeding fifteen employees.
National Social Insurance Trust Fund (NSITF) 1.00%
Industrial Training Fund (ITF) 1.00% This applies to all employers with at least five employees or an annual turnover of 50 million NGN.
Total Employment Cost 1.00% – 12.00%

Employer contribution

Payroll Tax Rate Description
Pension 8%

This applies to employees earning an annual income exceeding 3,000 NGN.
Housing Fund 2.50 %
Total Employee Cost 8.00% – 10.50%

Income Range Tax rate
0 - 300,000 7.00%
300,001 - 600,000 11.00%
600,001 - 1,100,000 15.00%
1,100,001 - 1,600,000 19.00%
1,600,001 - 3,200,000 21.00%
Above 3,200,000 24.00%

Separation

Termination 

The termination procedure depends on the terms of the employment and collective agreements and is influenced by the contract type and the cause for termination. Either the employer or the employee can terminate employment, provided that proper notice is given.

Severance Pay

Redundancy pay is obligatory for manual and clerical workers under the Labor Act. However, the law does not specify the exact amount for redundancy pay. It simply requires the employer to make every effort to negotiate redundancy payments. For employees not covered by the Labor Act, severance pay typically follows the terms outlined in the employment contract or collective agreement.

Notice Period

The length of notice periods is contingent upon the duration of the employee's tenure with the organization.

Period of service Notice period
0 - 3 months 1 day
3 months - 2 years 2 years 1 week
2 - 5 years 2 weeks
5 years and more 1 month

Probation period

A probationary period is not mandatory, although it is customary to have a probationary period of 3 to 6 months.

Start Hiring in Nigeria today

When it comes to hiring globally, making sure everything follows the rules can be tough. You have to deal with different employment laws, payrolls, diversity rules, data protection, and more. Creating local offices for hiring is not easy, and keeping up with all the changing rules is even harder.

That's where Gloroots comes in. We make it simple. Our experts take care of all the complex stuff, like following the rules for hiring in different countries. They handle contracts, make sure people get paid on time, and make sure everyone gets the right benefits.

With us, you can focus on finding the right people for your team. We promise to make global hiring stress-free for you and your employees. If you want to start hiring in Nigeria, talk to our experts today.

Are you Ready to
Experience Seamless Hiring in Nigeria ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Nigeria .

Speak to our Expert