Salary Calculator

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Monthly PAYE Tax: ₦0.00

Annual PAYE Tax: ₦0.00

Take-Home Pay: ₦0.00

Total Deductions: ₦0.00

Total Pay: ₦0.00

How to calculate your salary?

To calculate your salary, determine the total amount you earn for your work during a specific period (e.g., weekly, bi-weekly, monthly). This includes:

  1. Hourly wage: Multiply your hourly rate by the number of hours worked.
  2. Annual salary: Divide your annual salary by the number of pay periods in a year.
  3. Add any bonuses or overtime: Include any additional earnings for the period.

How to calculate gross salary from net salary in Nigeria?

To calculate gross salary from net salary in Nigeria, you need to account for all deductions such as taxes, pension contributions, and other statutory deductions. Use this formula:

Gross Salary= Net Salary÷ 1−(Tax Rate+Pension Contribution+Other Deductions)

What is the formula for calculating monthly salary?

To calculate your monthly salary:

Monthly Salary= Annual Salary​ ÷ 12

For hourly workers:

Monthly Salary = Hourly Wage × Hours Worked per Week × 4.33

How to calculate percentage of salary?

To calculate the percentage of salary:

Percentage of Salary = (Part of Salary + Total Salary) × 100

For example, if you want to know what percentage of your salary goes to rent:

[ Rent Percentage = (Rent × Total Salary) × 100

How to calculate salary breakdown in Nigeria?

To calculate a salary breakdown in Nigeria:

  1. Determine Gross Salary: This is the total salary before any deductions.
  2. Subtract PAYE Tax: Use the applicable tax rates.
  3. Subtract Pension Contribution: Usually 8% of gross salary.
  4. Subtract other deductions: Health insurance, housing funds, etc.
  5. Calculate Net Salary:

Net Salary = Gross Salary – (PAYE Tax + Pension Contribution + Other Deductions)

How do you calculate the total salary of employees?

To calculate the total salary of employees:

  1. Calculate the gross salary for each employee.
  2. Sum up the gross salaries of all employees.
  3. Subtract total deductions for all employees to find the net total.

Total Salary = sum(Gross Salary of each employee) – sum (Total Deductions of each employee)

How much tax is deducted from salary in Nigeria monthly?

The Pay As You Earn (PAYE) tax rates in Nigeria are progressive. Here’s a simplified version:

  • First ₦300,000 – 7%
  • Next ₦300,000 – 11%
  • Next ₦500,000 – 15%
  • Next ₦500,000 – 19%
  • Next ₦1,600,000 – 21%
  • Above ₦3,200,000 – 24%

Calculate your tax based on your annual salary, then divide by 12 for the monthly deduction.

How to reduce PAYE tax in Nigeria?

To legally reduce PAYE tax in Nigeria, consider:

  1. Tax reliefs and allowances: Ensure you claim all eligible tax reliefs and allowances.
  2. Pension contributions: Contributing to an approved pension scheme reduces taxable income.
  3. Voluntary deductions: Contribute to other approved voluntary schemes.
  4. Medical insurance: Contributions to approved medical insurance schemes may be tax-deductible.