A typical Nigerian payslip carries more than one deduction. PAYE usually sits alongside a pension contribution, and sometimes other statutory or company deductions too.
This guide describes how these generally relate to each other, without stating a pension contribution rate, since the facts registry behind this series does not carry one for it.
Why this guide doesn't state a rate
Pension contribution rates are set by pension rules and scheme terms that sit outside the PAYE bands this series otherwise draws on. Rather than restate a figure from memory, this guide leaves it out and points you to whoever can confirm it for your specific scheme: your employer's payroll team or your pension fund administrator.
The same caution applies to other deductions sometimes seen alongside PAYE, such as a national housing contribution. None of them are stated here with a specific rate.
How deductions generally relate to PAYE
Many payroll systems apply other deductions to gross pay before working out PAYE, so that PAYE is calculated on a smaller figure than the full salary. Whether that is how a specific employer's payroll works is something to confirm locally, since this guide's registry does not cover payroll mechanics in that detail.
If a payroll system does reduce pay before applying PAYE, the bands themselves still work exactly as described in the 2026 PAYE bands explained: whatever the final taxable figure is, the same band-by-band steps in how PAYE is calculated apply to it.
A simple way to think about it
Think of your pay in two stages. First, some deductions may come off the top. Then PAYE is worked out on what is left.
Not every deduction works this way. Some come off after tax, not before it. Others are optional, not statutory. That is exactly why this guide asks you to check, rather than guess, and why the answer can differ from one employer to the next.
What stays constant either way
Whatever other deductions apply, the PAYE bands and rates do not change. ₦800,000 is still the tax-free slice, and the same six bands still sit above it. Only the income figure the bands are applied to can move.
What to check on your own payslip
- Ask payroll which deductions apply to your pay before PAYE is calculated.
- Ask your pension fund administrator for your scheme's current contribution rate.
- Compare the PAYE line on your payslip against the PAYE calculator, using whatever figure your employer says PAYE is actually calculated on.
For everything else in this series, including rent relief, which this guide can state a figure for, see the PAYE and state tax hub. A short conversation with payroll now saves confusion later, especially in the first few payslips after any deduction changes.