Salary Slip Generator — Lagos, Nigeria
Salary Slip Generator for Lagos — Lagos PAYE Compliant
Lagos salary slips must reflect Lagos State Internal Revenue Service (LIRS) PAYE deductions. Lagos, as Nigeria economic hub, has the highest concentration of formal sector employment and the most acti...
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Lagos salary slips must reflect Lagos State Internal Revenue Service (LIRS) PAYE deductions. Lagos, as Nigeria economic hub, has the highest concentration of formal sector employment and the most active tax collection system through LIRS.
A Lagos payslip built to LIRS expectations separates the gross package into basic, housing and transport, then applies the reliefs allowed under the Personal Income Tax Act before tax is charged. The Consolidated Relief Allowance is the higher of ₦200,000 or 1% of gross income, plus 20% of gross income; pension, NHF and NHIS contributions are also deducted before arriving at taxable income, which is then taxed on the graduated 7% to 24% bands.
Statutory deductions that appear on a compliant Lagos slip are the 8% employee pension contribution under the Pension Reform Act 2014, the 2.5% National Housing Fund contribution on basic salary, and PAYE remitted monthly to LIRS by the 10th of the following month. Employers must also file an annual return with LIRS in January, and issue each employee a tax deduction card, so accurate monthly payslips are the paper trail that keeps both sides compliant.
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FAQ
Frequently Asked Questions
While PAYE rates are set federally under the Personal Income Tax Act, Lagos State Internal Revenue Service (LIRS) is notably more efficient and aggressive in tax collection compared to other states. Lagos employers must register with LIRS and file monthly PAYE returns. LIRS conducts regular audits and imposes penalties for non-compliance. The tax rates are the same nationwide (7% to 24% graduated), but Lagos enforcement means employers must be meticulous with deductions and remittances. LIRS also provides an online filing portal for streamlined compliance.
PAYE follows the Personal Income Tax Act. Gross pay is first reduced by tax-exempt items and the Consolidated Relief Allowance — the higher of ₦200,000 or 1% of gross income, plus 20% of gross income — and by pension, NHF and NHIS contributions. The remaining taxable income is charged on graduated bands: 7% on the first ₦300,000, 11% on the next ₦300,000, 15% on the next ₦500,000, 19% on the next ₦500,000, 21% on the next ₦1,600,000 and 24% above ₦3,200,000. The monthly deduction on the payslip is one-twelfth of the annual figure.
The National Housing Fund Act requires a contribution of 2.5% of an employee's basic salary, deducted by the employer and remitted to the Federal Mortgage Bank of Nigeria through the scheme. It appears as a separate line on a compliant payslip and is deducted before PAYE is calculated. Contributors become eligible to apply for subsidised NHF mortgages, and the contributions are in principle refundable with interest on retirement or at age 60.
Employers must deduct PAYE from each month's salary and remit it to the Lagos State Internal Revenue Service by the 10th day of the following month. An annual return of all deductions for the previous year is due by 31 January. Late remittance attracts penalties and interest, and LIRS is known for active enforcement and audits, so accurate monthly payslips and timely remittance schedules are the records that keep a Lagos employer compliant.