A monthly salary at this level is common across office and administrative roles in Nigeria's bigger cities. This example reaches into a second PAYE band, not just the first, so it is worth seeing in full.
The bands below have applied since 1 Jan 2026, and they are the same ones behind the PAYE calculator, pension included.
The worked example
₦300,000 a month comes to ₦3,600,000 a year gross. Most employees also have a pension contribution deducted before PAYE, commonly 8% of gross pay, which is the default this guide and the calculator both use; check your own payslip for the rate that actually applies to you.
- Gross pay: ₦3,600,000 a year.
- Pension at 8%: ₦288,000.
- Taxable income: ₦3,312,000.
Applying the bands to the taxable figure:
- First ₦800,000: nothing.
- Next slice, taxed at 15% on income from ₦800,001 to ₦3 million: ₦330,000, which uses up that whole band.
- Remaining ₦312,000, taxed at 18% on income from ₦3 million to ₦12 million: ₦56,160.
Adding it up in this example
₦330,000 plus ₦56,160 comes to ₦386,160 in tax for the year, or ₦32,180 a month. Take-home pay is gross less pension less PAYE: ₦3,600,000 minus ₦288,000 minus ₦386,160, or ₦2,925,840 a year, close to ₦243,820 a month.
Without pension, for comparison
Applying the bands straight to the ₦3,600,000 gross, with no pension taken off first, would give a bigger tax bill of ₦438,000 a year instead of ₦386,160. The gap is what the pension contribution saves in tax by reducing the taxable figure first.
Why the second band comes into play here
Taxable income at this level is high enough to use up the whole of 15% on income from ₦800,001 to ₦3 million and still have income left over. That leftover, ₦312,000 in this example, is what pushes part of the salary into 18% on income from ₦3 million to ₦12 million.
A noticeably smaller monthly salary would likely stop short of that second band entirely, staying inside the first taxed band alone even after pension is taken off.
What this example looks like on a payslip
A payslip for this salary should show gross pay of ₦300,000, a pension line close to ₦24,000 a month, a PAYE line close to the monthly figure in this example, and a net pay figure matching the take-home amount above, give or take any other deduction that also applies.
Asking payroll to show the calculation band by band is a reasonable request if a payslip's PAYE line looks noticeably different from this example.
How this compares to other salary levels
A smaller monthly salary example never leaves the first taxed band at all. A larger monthly salary example uses the second band far more fully, and a still larger one reaches a third band entirely.
The method behind every one of these examples is the same: only the number of bands crossed changes. See how PAYE is calculated step by step for that method on its own, without a specific salary attached.
What this example still leaves out
Pension is the one deduction this example applies, since it is the calculator's default. It does not apply rent relief or any other deduction, since those depend on documents specific to one person, such as a tenancy agreement. A payroll or tax adviser can confirm which of those also fit a specific job.
Where to check the bands themselves
For the full ladder this example draws on, see the 2026 PAYE bands explained, and browse the rest of this series, including examples at other salary levels, from the PAYE and state tax hub.