PAYE (pay as you earn)
PAYE is the system where an employer deducts an employee's income tax from each salary payment and pays it to the tax authority. In Nigeria, PAYE follows the Nigeria Tax Act 2025 bands from January 2026, with the first ₦800,000 of yearly taxable income taxed at 0%.
The employer works out taxable income (gross pay minus allowed reliefs such as pension contributions and rent relief), applies the tax bands, deducts the monthly share and remits it to the state tax authority by the due date.
Profynix prepares PAYE, pension (8% employee and 10% employer) and NHF on each pay run, and builds the remittance schedules by state and pension fund administrator for you to approve.
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