PAYE rates overview
Nigeria PAYE uses graduated bands. The exact mechanics depend on the prevailing rules (including relief calculations and exemptions). For compliance, payroll teams should treat the official legislation and SIRS guidance as source of truth.
AccessRA's calculator provides an auditable breakdown that shows how taxable income is split across bands.
Minimum wage edge case
PAYE can have discontinuities around minimum wage thresholds. A professional implementation must ensure:
- correct exemption behavior (when applicable),
- no incorrect tax applied below threshold,
- deterministic net→gross solving without 'jumping' across the threshold.
AccessRA's engine includes a discontinuity-safe solver for net-to-gross scenarios.
How to verify your payroll rates
- Pick 3 salary levels (low/mid/high) and compute PAYE.
- Validate against SIRS guidance or a trusted tax professional.
- Lock the payroll rule version for that tax year and document it.