--- title: "Nigeria Hiring Guide 2026 | Pension on Day One" description: "Hire in Nigeria 2026: written contract, work-permit check, pension due within 7 days, Labour Act notice from 1 day. Teamed handles all five steps." canonical: https://www.teamed.global/country-hiring-guides/nigeria/hiring-guide --- Nigeria · Hiring guide child Served by Teamed vetted partner-entity network in Nigeria # How do you *hire a Nigerian employee* in 2026? Nigeria's Pension Reform Act requires pension registration within 7 working days of the first salary payment. Miss it and your employee is unregistered with PenCom. Labour Act notice starts at just 1 day for new hires, scaling to 4 weeks once tenure reaches five years. Last reviewed 13 Jun 2026 · Nigeria guide ![A busy commercial street in Lagos with modern office buildings and vibrant street activity.](/images/country-guides/nigeria-hiring-guide.webp) Illustration · Lagos, Nigeria Answer.cite this The Nigeria hire process has five steps. Offer letter, work-permit check, written contract, pension and payroll registration, first payday. Pension registration must happen within 7 working days of the first salary payment. The employer contributes 10% of monthly emoluments to the employee's Retirement Savings Account. The written employment contract should be issued before or on day one. Labour Act notice starts at 1 day for new hires. It rises with tenure, reaching 4 weeks at five years of service. ![Hands reviewing a printed employment contract at a desk in a Lagos office.](/images/country-guides/nigeria-hiring-guide-polaroid-1.webp) Sign before day one ## What does the end-to-end Nigeria hire process look like? Five steps from accepted offer to first payslip: offer letter, work-permit check, written contract, pension and PAYE registration, first payday. The pension registration deadline is the tightest compliance step. It falls within 7 working days of the first salary payment, not months later. | Step | What happens | Owner | Timing | | --- | --- | --- | --- | | 1. Offer letter | Written offer with role, salary, start date, and key terms | Client / Teamed drafts | Same day after verbal accept | | 2. Work-permit check | Confirm nationality and work authorisation; verify visa/expatriate quota for non-citizens | Teamed | Before the employee starts | | 3. Written contract | Employment contract covering Labour Act requirements (role, pay, notice, leave, probation) | Teamed (legal employer) | On or before day one | | 4. Pension and payroll registration | Open or transfer Retirement Savings Account (RSA) with a PenCom-licensed PFA; collect Tax Identification Number (TIN); register for PAYE with the relevant State Internal Revenue Service | Teamed | Within 7 working days of first salary payment | | 5. First payday | First payslip issued; PAYE remitted to the State IRS by the 10th of the following month; pension remitted within 7 working days of payment | Teamed | End of first payroll month | 1. Issue the offer letter Send a written offer the same day as verbal acceptance. Include role, salary, start date, probation of up to 6 months, notice of 1 day during the first three months, and any conditions such as work authorisation or references. 2. Complete the work-authorisation check Confirm the employee's right to work. For Nigerian citizens, verify their identity document and retain a copy. For foreign nationals, confirm that an Expatriate Quota position exists and that the employee holds or is obtaining their CERPAC before the start date. 3. Issue the written contract Issue the full employment contract before or on day one. The contract must cover pay, notice tied to tenure, leave, probation, and pension terms. Teamed's standard Nigerian contract meets all Labour Act requirements. Clients choose commercial terms; Teamed signs as the legal employer. 4. Complete pension and payroll registration Open or transfer the employee's Retirement Savings Account with a PenCom-licensed PFA, register for PAYE with the relevant State Internal Revenue Service, and collect the Tax Identification Number and bank details. Pension registration must be completed within 7 working days of the first salary payment. 5. Issue the first payslip and file returns Run the first payroll at the end of the first calendar month. Remit PAYE to the State IRS by the 10th of the following month. Transfer pension contributions to the PFA within 7 working days of salary payment. The employee receives their payslip and is on the payroll record. ## What must a Nigerian offer letter include? The offer letter is not the binding contract. It is what the candidate decides against. Include role title, reporting line, start date, gross monthly salary, working hours, location, probation period of up to 6 months, and any conditions such as work authorisation or references. Three traps to avoid in Nigerian offer letters: - **Quoting net salary.** Tax rates changed under the Nigeria Tax Act 2025 from January 2026. Committing to a net figure in writing creates problems when PAYE or pension rates shift. Quote gross monthly salary only. - **Inconsistent probation terms.** If the offer letter states one probation length and the written contract states another, the contract governs. Align them before the employee starts. The National Industrial Court (NICN) has held that extending probation beyond the contractually stated period is an unfair labour practice. - **Overstating discretionary benefits.** Promising a bonus at a specific level in an offer letter without a clear "discretionary" qualifier can create a contractual entitlement if the employee relies on it. Teamed's standard Nigerian offer letter template covers all required ground. Clients choose commercial elements; Teamed holds the legal-employer position. ## Nigeria work authorisation and expatriate quota checks Nigerian citizens do not require a work permit to work in Nigeria. Foreign nationals must hold a valid work permit before starting employment. The most common route is the Expatriate Quota, issued by the Nigerian Immigration Service (NIS) to the employing company. ### Nigerian citizens For Nigerian nationals, there is no formal right-to-work check of the kind that exists in the UK or Germany. The employer confirms the employee's identity and retains a copy of their means of identification (National ID card, international passport, or driver's licence) as part of the onboarding record. ### Foreign nationals Non-citizens must have their immigration status confirmed before starting work. The employer must hold an approved Expatriate Quota position for the role before a foreign national can be hired into it. The Expatriate Quota is applied for through the NIS; positions are granted by role type and number. Foreign employees typically enter on a Subject to Regularisation (STR) visa and then convert to a Combined Expatriate Residence Permit and Aliens Card (CERPAC). The CERPAC is the combined work and residence permit. It must be in place before the employee starts substantive duties. Nigerian Immigration Service · Expatriate Quota and CERPAC Employers wishing to hire foreign nationals in Nigeria must obtain approval for an Expatriate Quota position before the hire and ensure the employee holds a valid CERPAC before commencing substantive work. Operating without a valid quota or permit is a criminal offence under the Immigration Act. Source: [Nigerian Immigration Service: Expatriate Quota](https://immigration.gov.ng/expatriate-quota/) ### Ongoing permit management CERPACs are issued for one to two years and must be renewed before expiry. Teamed tracks each renewal deadline and notifies clients and employees in advance. An expired permit is a compliance breach for both employer and employee. ## The Nigerian written contract: what must it contain? The Labour Act does not prescribe a single mandatory contract form. However, it requires that each employee receives a written statement of the terms of their employment. Best practice is to issue the full written contract before or on day one. It is the binding document. The offer letter is not. What a Nigerian employment contract should include to satisfy the Labour Act and protect both parties: - Names and addresses of both employer and employee - Date employment begins - Job title and a brief description of duties - Place of work and any mobility or travel requirements - Gross salary, pay components, and payment intervals (monthly is the norm) - Normal working hours per day and per week - Annual leave entitlement (the statutory minimum is 6 days per year after 12 months; market practice is significantly higher) - Sick leave terms (the statutory minimum is 12 days at full pay per year) - Maternity leave for female employees (12 weeks under the Labour Act, with at least 50% of wages for the private sector) - Notice periods keyed to tenure: 1 day for the first 3 months, 1 week from 3 months to 2 years, 2 weeks from 2 to 5 years, 4 weeks from 5 years onwards - Probation period and the notice to end employment during probation (1 day at the statutory minimum) - Pension scheme details, including the employee's chosen Pension Fund Administrator (PFA) - Disciplinary and grievance procedures - Any collective agreement that applies to the role Teamed's standard Nigerian contract covers all of the above and is reviewed against current legislation. Clients choose commercial elements such as salary, bonus, restrictive covenants, and extended notice provisions. Teamed signs as the legal employer. Key source: [Labour Act (Cap L1 LFN 2004), Section 11](https://jurist.ng/labour_act/sec-11) via jurist.ng. ## Onboarding admin in the first week Days 1 to 7: contract signed, work-authorisation confirmed, Tax Identification Number collected, pension Retirement Savings Account opened or transferred, PAYE registration with the State IRS, and bank details collected. Teamed handles the compliance side. The client handles the cultural and operational side. | Onboarding task | Who does it | Day | | --- | --- | --- | | Written employment contract signed | Employee and Teamed | Day 0 or 1 | | Work-authorisation document check (citizenship ID or CERPAC for foreigners) | Teamed | Day 0 (before start) | | Tax Identification Number (TIN) collected | Employee submits to Teamed | Day 1 | | Pension Fund Administrator (PFA) choice confirmed | Employee selects PFA; Teamed opens or transfers RSA | Days 1 to 3 | | PAYE registration with relevant State Internal Revenue Service | Teamed | Days 1 to 7 | | Bank account details collected for NIBSS payment | Teamed | Days 1 to 7 | | Group life or benefits enrolment | Teamed (admin) and Client (decision) | Days 1 to 7 | | Equipment and system access | Client | Days 0 to 1 | | Manager introduction and first-week plan | Client | Days 0 to 7 | | 30-60-90 day plan documented | Client (manager) | Days 1 to 14 | ## How does Teamed handle Nigerian employment for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Nigeria for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, PenCom registration, PAYE filing, and the full Nigerian employment law stack run on **one platform**. **Real HR and legal experts** handle your Nigerian hires, from the first offer letter through every monthly PAYE remittance and pension transfer. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Nigerian contractor who converts to salaried employment keeps their record. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month your Nigerian hire is ready to graduate to your own entity. Start from the Nigeria hiring overview; each guide here takes one layer of Nigerian employment law. Key sources: [Labour Act (Cap L1 LFN 2004)](https://jurist.ng/labour_act/sec-11), [National Pension Commission (PenCom)](https://www.pencom.gov.ng/), and [Nigerian Immigration Service](https://immigration.gov.ng/). ## Frequently asked questions How long does it take to hire someone in Nigeria through Teamed? For Nigerian citizens with all documents in order, Teamed can complete onboarding within a few business days of offer acceptance. The written contract is issued on or before day one. Pension registration must happen within 7 working days of the first salary payment, and PAYE registration runs in parallel. Foreign nationals who need an Expatriate Quota and CERPAC take longer because those permits must be in place before the start date. What are the notice periods under Nigeria's Labour Act? Nigeria's Labour Act sets notice on a tenure ladder. For the first 3 months: 1 day. From 3 months to 2 years: 1 week. From 2 to 5 years: 2 weeks. At 5 or more years: 4 weeks. The same schedule applies to both employer and employee. Notice of one week or more must be in writing. During probation, the minimum notice is 1 day. How does pension registration work for a new Nigerian employee? Every employer with 15 or more employees must register each new employee with a Pension Fund Administrator (PFA) licensed by PenCom. The employee chooses their own PFA. The employer contributes 10% of the employee's monthly emoluments to the employee's Retirement Savings Account. Contributions must be remitted within 7 working days of salary payment. If the employee already has an RSA from a previous employer, the account is transferred rather than a new one opened. What is the minimum annual leave entitlement for a Nigerian employee? The statutory minimum under the Labour Act is 6 days per year, earned after 12 months of continuous service. Employees under 16 receive 12 working days. This is a very low floor; market practice in professional roles in Lagos and Abuja is typically 10 to 21 days. Nigeria has 13 public holidays in 2026, which are a separate entitlement and cannot be counted toward annual leave. Do foreign nationals need a work permit to work in Nigeria? Yes. Non-citizens must hold a valid CERPAC (Combined Expatriate Residence Permit and Aliens Card) before they can start substantive work. The employer must first obtain an Expatriate Quota position from the Nigerian Immigration Service for the role. The employee then enters on an STR visa and converts to a CERPAC. Operating without a valid quota or permit is a criminal offence under the Immigration Act. Teamed manages the Expatriate Quota application process and tracks all renewal deadlines. Teamed Legal Operations The pension registration window catches companies out every time. Seven working days from first salary sounds like plenty until you are locating a PenCom-licensed PFA, verifying the employee's RSA number, and getting a signed remittance instruction all in the same week. We build that sequence into the onboarding flow from day one so the deadline never sneaks up. A note from Tom Price-Daniel Nigeria's pension clock starts ticking the moment the first salary lands. Seven working days is the window. It does not wait for the employee to choose a PFA. Get the registration done in parallel with onboarding, not after. Tom Price-Daniel · Co-founder, Teamed ## Related Nigeria guides - Hiring in Nigeria, overviewparent - [Nigeria termination and severance](/country-hiring-guides/nigeria/termination-and-severance)sibling - [Nigeria tax and payroll](/country-hiring-guides/nigeria/tax-and-payroll)sibling - [Nigeria employer cost breakdown](/country-hiring-guides/nigeria/cost-breakdown)sibling - [Employer of Record overview](/lp/employer-of-record)core - [Pricing: zero FX mark-up](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Nigerian Labour Act, the National Pension Commission (PenCom), and the relevant State Internal Revenue Service for Nigeria, or speak to a qualified professional, before relying on any specific framework.