NSITF: 1% of payroll
Employer-only contribution to the Employees' Compensation Scheme. Nothing deducted from staff.
ITF: 1% of annual payroll
Training contribution for employers with 5+ staff or ₦50m turnover. Train staff, claim up to 50% back.
Certificate wins contracts
NSITF compliance certificates are routinely demanded before government and large-client contracts.
1. What NSITF is
The Nigeria Social Insurance Trust Fund runs the Employees' Compensation Scheme under the Employees' Compensation Act 2010. It pays compensation for death, injury, disability, or disease arising in the course of employment. It is funded entirely by employers as a social responsibility; government contributes only as an employer, and employees contribute nothing.
2. The NSITF contribution: 1%, employer only
Every employer contributes 1% of total monthly payroll (total emoluments). There is no headcount threshold stated in practice materials: all employers are expected to register. You may not deduct it from staff pay or ask employees to indemnify you against it.
| Item | NSITF rule |
|---|---|
| Rate | 1% of total monthly payroll |
| Who pays | Employer only, never the employee |
| Paid via | Remita, after NSITF assesses your payroll |
| Late penalty | 5% to 10% per month on unpaid contributions |
3. Registration and the compliance certificate
- Register: complete Form ECS RE01 (employer registration) and ECS RE03 (schedule of payments), with CAC certificate and company details.
- Pay: NSITF assesses your staff remuneration, then you pay through Remita. Initial registration and certification processing is about ₦50,000.
- Certify: apply with your request letter, CAC certificate, completed forms, and payment evidence. Issuance typically takes about 5 working days after verification.
Keep the certificate current. Expired compliance is the most common reason contract bids stall at the documentation stage.
4. Incidents and claims deadlines
Report workplace accidents or injuries within 7 days, and file formal claims within 21 days of the incident or diagnosis, with medical reports (and police reports where relevant). Late reporting complicates otherwise valid claims, so assign one person to own incident reporting.
5. ITF at a glance: the other 1%
The Industrial Training Fund, under the ITF Act, requires 1% of total annual payroll from every employer with 5 or more employees, or fewer than 5 with annual turnover of ₦50 million or more. It funds industrial skills development, and employers that train indigenous staff on approved programmes can claim a reimbursement of up to 50% of their contribution. Proof of ITF compliance is also required for expatriate quota approvals and government contracts, so register early rather than at bid time.
6. How WadataHR handles NSITF and ITF for you
WadataHR computes the 1% NSITF and 1% ITF employer contributions from each payroll run's figures, so the numbers your finance team remits match what payroll calculated. Reports break contributions down per employee and per period for remittance and certificate renewals.
NSITF and ITF questions employers ask
How much must an employer contribute to NSITF?
1% of total monthly payroll (total emoluments), paid entirely by the employer. Nothing is deducted from employees, and you may not ask staff to reimburse it.
How does an employer register with NSITF?
Complete Form ECS RE01 and the employer schedule of payments, pay via Remita after NSITF assesses your payroll, then apply with your CAC certificate and payment evidence. Registration is also available through the NSITF employer onboarding portal.
What is the NSITF compliance certificate and why does it matter?
Proof that your contributions are current, typically issued within about 5 working days of verified payment. Government agencies and many large clients demand it before awarding contracts, so it directly affects revenue.
What is the penalty for not remitting NSITF?
A monthly penalty of 5% to 10% on unpaid contributions for each month of default, on top of the arrears themselves. Report workplace incidents within 7 days and file claims within 21 days.
Which employers must contribute to ITF?
Every employer with 5 or more employees, or fewer than 5 employees with annual turnover of ₦50 million or more, must contribute 1% of total annual payroll to the Industrial Training Fund. Employers that train staff on approved programmes can claim back up to 50%.
Let payroll compute the 1%s automatically.
WadataHR works out NSITF and ITF employer contributions on every payroll run, with reports ready for remittance.
Start for freePrefer to talk? WhatsApp us
Related: PenCom guide · NHF guide · Termination guide