A Nigerian payslip usually has more lines than most, because packages are built from a basic salary plus several allowances.
The earnings side
Basic salary — the anchor for most calculations
Housing allowance — often 50-60% of basic
Transport allowance
Meal, education, utility and other allowances
These allowances are not statutory. They are market practice, and their size varies with location and industry.
Why the split is not cosmetic
Pension contributions are calculated on basic plus housing plus transport only.
Two packages worth the same gross can produce very different pension outcomes depending on how they are structured. A package heavy on non-pensionable allowances builds a smaller retirement fund.
It is worth asking about the structure, not just the total, when you receive an offer.
The deductions side
Pension — 8% of pensionable emoluments
PAYE, unless you fall under the exemption threshold
NHF only if you opted in, since it is now voluntary for the private sector
NSITF and ITF are employer costs and should not appear as deductions from your pay.
What to check every month
That the basic and allowances match your offer letter
That pension is 8% of the correct base
That no employer-side cost appears as your deduction
That PAYE reflects the 2026 rules
Keep your payslips
They are the primary evidence of your pay structure and of what was deducted. In any dispute about pension shortfalls or terminal entitlements, they are what you will need.
Frequently asked questions
What makes up a Nigerian pay package?
A basic salary plus allowances: housing, often 50-60% of basic, plus transport, meal, education and utilities. The allowances are market practice, not statutory.
Why does the basic-to-allowance split matter?
Because pension is calculated only on basic plus housing plus transport. Two packages with the same gross can build very different retirement funds.
What deductions should appear on my payslip?
Pension at 8% of pensionable emoluments, PAYE unless you are under the exemption threshold, and NHF only if you opted in.
Should NSITF appear as my deduction?
No. NSITF and ITF are employer costs and should not be deducted from your pay.
Why keep payslips?
They are the primary evidence of your pay structure and deductions, and what you will need in any dispute about pension shortfalls or terminal entitlements.