Glossary
Clear English and French definitions with country context where the meaning or rule differs.
13 terms
Gratuity is a lump-sum payment an employer gives an employee at the end of their service, usually on retirement or after a set number of years, as a reward for long service.
Gross pay is your full salary before any deductions; net pay (take-home pay) is what actually enters your bank account after PAYE tax, pension and any other deductions have been removed.
The NHF (National Housing Fund) is a Nigerian government savings scheme for housing: contributors pay 2.5% of their basic salary into the fund, managed by the Federal Mortgage Bank of Nigeria (FMBN), and in return can access low-interest housing loans.
The NSITF (Nigeria Social Insurance Trust Fund) runs the Employees' Compensation Scheme, insurance that pays employees or their families if they're injured, disabled or killed in the course of work. Employers fund it with 1% of monthly payroll.
PAYE (Pay As You Earn) is the system where your employer deducts your personal income tax from your salary each month and pays it to the state tax authority on your behalf.
PenCom, the National Pension Commission, is the government body that regulates and supervises all pension matters in Nigeria, including the mandatory contributory pension scheme employers must run under the Pension Reform Act 2014.
Remittance, in payroll, is the act of actually paying over the taxes and contributions you deducted from salaries, PAYE to the state tax authority, pension to each employee's PFA, and so on, to the bodies entitled to receive them.
Rent relief is a tax deduction under the Nigeria Tax Act 2025 that lets you deduct 20% of the annual rent you pay, capped at ₦500,000, from your income before PAYE is calculated.
