Download our free payroll template for Nigeria: an Excel file, which also opens in Google Sheets, that works out each person's PAYE under the Nigeria Tax Act 2025, pension (8% and 10%), optional NHF and NSITF, then gives you net pay, payslips, a bank transfer list, a pension schedule and the month's total cash needed.
No sign-up and no email needed. We tested its formulas against WadataHR's payroll engine, and they match to the kobo for a normal month.
Version 1, 20 October 2026 · up to 50 staff · opens in Excel or Google Sheets
Plenty of small companies run payroll in a spreadsheet, and there's nothing wrong with that. What goes wrong is the spreadsheet itself: formulas copied from someone's 2023 file, the old CRA still in there, and a total nobody checked. The free templates we found were either generic, not Nigerian, or built before the 2026 rules, and the Nigerian ones we found are sold. So we built one, free.
1. What's inside
2. How to use it
- Download the file and open it in Excel. For Google Sheets, upload it to Google Drive and open it with Sheets.
- Settings: add your company name and the payroll month. Change the basic, housing and transport split if yours isn't 50/30/20.
- Payroll: delete the 4 sample rows, then add one row per person. Fill in only the yellow cells. Pension is on by default; NHF is off unless the employee opts in.
- Add reliefs your staff have claimed: annual rent paid, and any health insurance, mortgage interest or life assurance they can show evidence for.
- Check "Cash this month" and make sure "No state entered" reads ₦0.
- Pay from your bank using the Bank file, send payslips, and remit PAYE, pension and NSITF by their due dates.
- Save a copy for each month, for example "Payroll November 2026". It's your payroll record.
3. The rules it uses
| Item | Rule in the template |
|---|---|
| PAYE | Nigeria Tax Act 2025: the first ₦800,000 a year at 0%, then 15%, 18%, 21%, 23% and 25%, with band edges at ₦3m, ₦12m, ₦25m and ₦50m. Worked out on the year's chargeable income and divided by 12. No CRA. |
| Reliefs | Pension, NHF, rent relief (20% of annual rent, up to ₦500,000) and declared health insurance, mortgage interest and life assurance. |
| Minimum wage | Staff earning ₦70,000 a month or less pay no PAYE, and NHF applies only from ₦70,000. |
| Pension | 8% from the employee and 10% from you, on basic + housing + transport. Required from 3 staff. |
| NHF | 2.5% of basic, only if the employee opts in. It's optional for private-sector staff. |
| NSITF | 1% of gross pay, paid by you. See our NSITF guide on what it's worked out on. |
| ITF | An estimate of 1% of a year's payroll, due by 1 April, if you have 5 or more staff or ₦50m turnover. |
These are the same rules as our take-home pay calculator and WadataHR's payroll. For the reasoning behind each one, see the Nigeria Tax Act 2025 guide, pension guide and NHF guide.
4. Worked example: the template's sample team
The file opens with four sample staff, so you can see it working before you add your own. Pay is split 50/30/20. Tunde claims rent relief on ₦600,000 rent, Ngozi has opted into NHF, and Musa claims rent relief on ₦3,000,000 rent (capped at ₦500,000) plus ₦120,000 of other reliefs.
| Staff | Gross | Pension | NHF | PAYE | Net pay |
|---|---|---|---|---|---|
| Ada | ₦120,000 | ₦9,600 | ₦0 | ₦6,560 | ₦103,840 |
| Tunde | ₦250,000 | ₦20,000 | ₦0 | ₦23,000 | ₦207,000 |
| Ngozi | ₦400,000 | ₦32,000 | ₦5,000 | ₦47,840 | ₦315,160 |
| Musa | ₦650,000 | ₦52,000 | ₦0 | ₦80,840 | ₦517,160 |
| Total | ₦1,420,000 | ₦113,600 | ₦5,000 | ₦158,240 | ₦1,143,160 |
On top of gross pay, the company pays ₦142,000 employer pension and ₦14,200 NSITF, so the month needs ₦1,576,200 in cash.
WadataHR does all of this every month, plus checks before you approve, schedules for each state tax office and PFA, staff self-service payslips and deadline reminders. Free for up to 5 staff.
5. What the template doesn't do
- Bonus months, part months and pay that changes during the year. The right PAYE method for these is still being confirmed with our accountant, so the template treats every month as a normal month. For a December bonus, read our 13th month salary guide and check with your adviser.
- It keeps no history. It doesn't track who changed what, or year-to-date totals. Save a copy each month.
- It doesn't file or pay anything. You remit PAYE, pension, NHF and NSITF yourself, by their due dates.
- Everyone who opens it sees every salary. Keep the file somewhere only you and whoever runs payroll can reach.
Our view: a spreadsheet is a fine way to start with a handful of staff, as long as you check it. When you find yourself copying last month's file and hoping, it's time for software. Ours is free for up to 5 staff, and you can compare the alternatives here.
Payroll template questions
Is there a free payroll template for Nigeria?
Yes. WadataHR's payroll template is a free Excel file that also opens in Google Sheets, with no sign-up. It works out PAYE under the Nigeria Tax Act 2025, pension, optional NHF and NSITF for up to 50 staff, and gives you payslips, a bank transfer list, a pension schedule and the month's cash needed.
How do I calculate PAYE for employees in Nigeria?
Take the year's gross pay, subtract the employee's 8% pension, any NHF, rent relief (20% of annual rent, up to ₦500,000) and other reliefs. Tax the result at 0% on the first ₦800,000, then 15%, 18%, 21%, 23% and 25% (band edges ₦3m, ₦12m, ₦25m and ₦50m), and divide by 12. Staff earning ₦70,000 a month or less pay no PAYE. On ₦400,000 a month with no reliefs, that's ₦48,740 a month.
Does the payroll template work in Google Sheets?
Yes. Upload the .xlsx file to Google Drive and open it with Google Sheets, or use File, then Import, in a blank sheet. The formulas, drop-downs and payslip work the same way.
Is the template updated for the 2026 tax law?
Yes. It uses the Nigeria Tax Act 2025 rules in force from January 2026: the ₦800,000 tax-free band, the new rates, rent relief instead of the old CRA, and the ₦70,000 minimum-wage exemption. We tested it against WadataHR's payroll engine on 20 October 2026.
Can the template handle bonuses or staff who join mid-month?
Not yet. The right PAYE method for bonus months, part months and pay that changes during the year is still being confirmed with our accountant, so the template treats every month as a normal month. Check those months with your tax adviser.
Related guides and tools
From spreadsheet to payroll that runs itself.
WadataHR works out every salary under the 2026 rules, prepares the schedules for each authority, sends payslips and reminds you before each due date. You pay from your own bank. Free for up to 5 staff.
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