NSITF contribution and group life minimum calculator (Nigeria)
| Total monthly payroll | ₦2,500,000 |
| NSITF contribution each month (1%) | ₦25,000.00 |
| Over 12 months | ₦300,000.00 |
| Annual total emolument (gross) of the employee | ₦3,600,000 |
| Minimum group life sum insured (3 times, i.e. 300%) | ₦10,800,000 |
What next: NSITF registration and claims · group life rules
Indicative: 1% is the minimum the Act sets; NSITF's board may assess a different amount. The group life premium is set by the insurer within NAICOM's rate table; this tool shows the minimum cover, not the premium.
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Get the free PDFThe rules the calculator uses
| Obligation | Rule | Source |
|---|---|---|
| Employees' Compensation Scheme | At least 1% of total monthly payroll, every month | Employee's Compensation Act 2010, s.33(1); NSITF |
| Group life insurance | Sum insured at least 3 times the annual total emolument (300% of gross emolument) | Pension Reform Act 2014, s.4(5); NAICOM-PenCom guidelines, §4.6 and §6.1 |
| Group life premium | Paid by the employer, before the cover starts, on top of pension contributions | Guidelines §2.1 and §5.7 |
NSITF states the rate as "1% of total monthly payroll, remitted by every registered employer" (NSITF services), and the National Industrial Court applied section 33(1) in the same terms in May 2025 (NICN). The group life rules are in the Revised Guidelines on Group Life Insurance Policy for Employees.
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Frequently asked questions
How much does an employer pay to NSITF?
At least 1% of the total monthly payroll every month (Employee's Compensation Act 2010, s.33(1)). Employees pay nothing.
How much group life cover must an employer buy?
At least three times each employee's annual total emolument, meaning the gross annual pay before deductions (Pension Reform Act 2014, s.4(5) and the NAICOM-PenCom guidelines).
Sources
- NSITF — Services: employer registration, contributions (1% of total monthly payroll), claims, certificate of compliance
- National Industrial Court of Nigeria — Employer is obligated to pay minimum 1% contribution of total monthly payroll into Employees' Compensation Fund (NSITF v NECO Staff School, 7 May 2025)
- NAICOM and PenCom — Revised Guidelines on Group Life Insurance Policy for Employees (1 September 2020; Pension Reform Act 2014, s.4(5))