The ITF staff threshold sounds simple until you try to count to it. The definition of who counts as an employee is wider than most payroll lists.
The 30-day test
ITF's own Form 5 guide defines an employee as anyone employed for at least 30 days, Nigerian or not, including directors, part-time, casual and contract staff. The 30-day mark, not the type of contract, is what decides whether someone is counted.
That means a worker hired on a short, casual basis still counts once they pass that point. A one-week engagement does not, but most ongoing arrangements will.
Roles people forget to count
A few categories catch employers out because they do not sit on a standard payroll run:
- Directors. Managing directors and other directors are named in ITF's own guidance, even where they are not paid like regular staff.
- Domestic staff. Where a company employs domestic staff directly, they are counted too.
- Casual and temporary workers. Anyone past the 30-day mark counts, not only staff with a formal, permanent contract.
- Contract and site workers. Named specifically in ITF's guidance, including drivers engaged on this basis.
Leaving any of these groups out understates your headcount, which can change whether the staff threshold applies to you at all.
Nationality does not change the answer
The definition covers Nigerian and non-Nigerian staff alike. A business with a mixed team cannot exclude foreign employees from the count on that basis.
Why the count matters
Your headcount feeds directly into whether 5 or more employees applies to your business, and into the payroll figure the contribution is calculated on. See the ITF contribution rate and what counts as payroll for how that second figure is built.
A business that undercounts staff can wrongly conclude it sits outside the Act, only to find the true headcount says otherwise once a tender board or an ITF review looks closely.
Getting your count right
- List everyone paid by the company in the year, including directors, however they are paid.
- Add casual, part-time and contract staff who worked more than 30 days, even if they have since left.
- Include domestic and site staff engaged directly by the company.
- Recheck the completed list against payroll records, not memory, before you rely on the total for anything official.
Common mistakes
- Counting only staff with a formal, permanent contract.
- Leaving directors off the list because they are not paid a standard salary.
- Dropping staff who left partway through the year from the count.
- Assuming nationality changes who is counted.
Once your headcount and payroll are both confirmed, who must pay the ITF levy sets out the full threshold test, and the ITF compliance certificate guide covers what follows once you know contribution is due.