Gross ↔ Net Converter
Convert Gross Salary to Net Pay and vice-versa. Ideal for negotiating offer letters.
Understanding Gross vs Net Salary in Nigeria
Last Updated: feb 23, 2026What's the Difference?
Gross Salary is the total amount your employer promises to pay you before any deductions. Net Salary (take-home pay) is what actually lands in your bank account after PAYE tax, pension, and other deductions.
"Shey my alert go increase now abi na audio?" — This calculator shows you the real numbers, no audio!
What Gets Deducted from Your Salary?
In Nigeria, your employer makes these deductions every month:
- PAYE Tax: Income tax calculated using 2026 progressive rates (7% to 24% depending on your income bracket)
- Pension (8%): Mandatory contribution to your Retirement Savings Account (RSA). Your employer adds another 10%.
- NHF (2.5%): National Housing Fund contribution (optional for some employers, mandatory for federal workers)
- Other Deductions: Union dues, cooperative savings, or loan repayments (if applicable)
How to Use This Calculator
Our salary calculator works both ways:
- Gross to Net: Enter your gross salary to see your take-home pay after all deductions
- Net to Gross: Enter your desired take-home pay to see what gross salary you need to negotiate
Example Breakdown
If your gross salary is ₦200,000/month:
- • Gross Salary: ₦200,000
- • Pension (8%): -₦16,000
- • NHF (2.5%): -₦5,000
- • PAYE Tax: ~₦8,500 (after CRA relief)
- = Net Salary: ~₦170,500
2026 Tax Law Changes
The new tax law increased the Consolidated Relief Allowance (CRA), which means lower PAYE deductions for most workers. If you earn between ₦100k and ₦500k monthly, your take-home pay should be higher in 2026 compared to 2025.
Why This Matters for Job Negotiations
When negotiating salary, always ask: "Is this gross or net?" Some employers quote gross figures to make the offer sound bigger. Use this calculator during negotiations to know exactly what you'll receive in your account.
⚠️ Important: This calculator uses 2026 tax rates. If your employer is still using 2025 rates, your actual deductions might differ. Show them this tool!
Lagos Resident?
There is a new "Smart City" tax update for workers in Lagos. See if your salary is affected.
Check the Lagos Tax Update →