Staff payroll and PAYE

If you have staff on payroll, BizOS calculates PAYE, personal income tax, automatically based on the current Nigeria Tax Act 2025 bands, effective from January 1, 2026.

The bands work like this. The first 800,000 naira of chargeable income is taxed at 0 percent. The next 2.2 million naira, meaning income between 800,001 and 3,000,000, is taxed at 15 percent. The next 9 million naira, up to 12,000,000, is taxed at 18 percent. The next 13 million naira, up to 25,000,000, is taxed at 21 percent. The next 25 million naira, up to 50,000,000, is taxed at 23 percent. Anything above 50,000,000 naira is taxed at 25 percent.

A pension deduction of 8 percent of basic salary is applied as well, alongside PAYE.

The old Consolidated Relief Allowance no longer applies under the 2025 reform. In its place is Rent Relief, which allows 20 percent of annual rent paid to be deducted, capped at 500,000 naira per year. If a staff member does not pay rent, they do not receive this relief beyond the 800,000 naira zero rate band.

Staff earning the minimum wage or below, currently defined as 70,000 naira a month or less, are automatically exempt from PAYE.

You do not need to calculate any of this yourself. Once a staff member's salary is entered, BizOS applies these bands and deductions automatically each pay run. Setting up payroll itself is covered in the Settings and Account section.