Payroll for Nigeria, approved in the right order.
Run the month with PAYE under the Nigeria Tax Act 2025, pension, NHF and NSITF. HR prepares it, your MD approves it, Finance locks and pays it, and the remittance files are ready when they do.
- HR review
- Pending approval
- Approved
- Locked
- Paid
The statuses a payroll period moves through in Praxis. A period can be sent back to HR review at the approval step.
What it does.
Praxis calculates each employee's pay from their record, attendance and leave, then takes the run through approval and produces everything Finance needs to pay and remit.
Statutory deductions
- PAYE on the six NTA 2025 bands, with reliefs for pension, NHF, rent and mortgage interest
- Pension at 8% employee and 10% employer on basic, housing and transport
- NHF at 2.5% of basic, if your company opts in, and NSITF at 1%
- A minimum-wage floor, and flat pay with PAYE only for contract staff and interns
Days paid
- Joiners paid from their start date, leavers to their last working day
- Absences, half-days and approved unpaid leave deducted
- Weekends and public holidays excluded from working days
Loans and bonuses
- Loan repayments deducted and posted to each loan's ledger
- Repayments count as settled only when the month is marked paid
- One-off or recurring non-taxable bonuses added to net pay
Control
- Re-run as often as needed until the month is locked
- The person who submits a run can't approve it
- Tax bands and statutory rates editable, with a reset to NTA 2025
PAYE on the 2025 bands.
Under the Nigeria Tax Act 2025 the first ₦800,000 of taxable income is tax-free and the rest is taxed in five bands. Praxis applies them to each employee's annual taxable income and deducts a twelfth each month.
| Band | Rate |
|---|---|
| First ₦800,000 | 0% |
| ₦800,000 to ₦3 million | 15% |
| ₦3 million to ₦12 million | 18% |
| ₦12 million to ₦25 million | 21% |
| ₦25 million to ₦50 million | 23% |
| Above ₦50 million | 25% |
- Taxable income is gross pay minus employee pension, NHF, mortgage interest and rent relief.
- Rent relief is 20% of annual rent, up to ₦500,000.
- If the bands saved for your company have a gap, Praxis uses the NTA 2025 bands instead.
Try it
Monthly figures- Gross pay₦450,000
- Pension, employee8% of basic, housing and transport−₦21,600
- PAYEA twelfth of the annual tax−₦59,612
- Net pay₦368,788
An illustration using Praxis's default salary split (basic 25%, housing 15%, transport 20%) with pension as the only relief. Your payroll may include NHF, rent relief and other items. Not tax advice.
How a month runs.
Each step belongs to a different role, and each person is notified when it's their turn.
Run
HRChoose the company and month. Praxis calculates every employee's pay.
HR reviewReview
HRCheck each line and the payslip previews. Re-run if anything changes.
Submit
HRApprovers get an in-app notice and an email.
Pending approvalApprove
Managing directorApprove, or send it back to HR review.
ApprovedLock
FinanceFigures are frozen. Download the bank, PAYE and pension files.
LockedPaid
FinanceLoan repayments settle and each employee gets a payslip email.
Who uses it.
| Role | What they do in payroll |
|---|---|
| HR | Run payroll for a month, review it and submit it for approval. |
| Managing director | Approve the run, or send it back to HR with changes. |
| Finance | Lock the approved run, download the remittance files and mark it paid. Finance works across every company in your group. |
| Employees | See payslips and year-to-date totals in My Payslips, and download an annual tax statement. |
| Administrators | Set statutory rates, NHF, rent and mortgage relief, tax bands and company bank accounts. |
What you get.
- CSVBank payment fileEach employee's bank, account number and net pay, debited from your primary company account.
- CSVPAYE scheduleMonthly schedule with each employee's TIN, gross pay components and reliefs.
- XLSXPension scheduleIn the PenCom upload layout, with employee and employer contributions.
- PDFPayslipsWith your logo and colour, earnings, deductions and days worked.
- PDFAnnual tax statementEmployees download their own from My Payslips.
- XLSXPayroll reportsPayroll summary, yearly analytics, and PAYE, pension, NHF and loan-deduction reports.
Payroll in Praxis.
Works with.
Run a month of payroll with us.
We'll take a sample of your staff through a full run, from calculation to the files Finance remits.