How Employer-of-Record Services Help Companies Hire in Nigeria
How employer-of-record firms like Deel, Remote and Oyster hire Nigerians: naira pay, PAYE, pension, HMO, costs, and what to check before you sign.
By Chiamaka Obi, Pay and contracts writer
Updated 17 min read
An employer of record (EOR) lets a foreign company hire you in Nigeria as a salaried employee without opening its own Nigerian company. The EOR, a firm such as Deel, Remote or Oyster, becomes your legal employer on paper. It signs your contract, runs payroll, deducts tax and pension, and arranges health cover, while the foreign company directs your daily work.
For Nigerians job hunting with companies abroad, an EOR offer is worth reading carefully. You usually get a pension, an HMO plan, payslips and statutory leave. You are also usually paid in naira, your pay is benchmarked to Nigeria, and the company pays the EOR a monthly fee on top of your salary.
This guide covers how international companies hire in Nigeria, what an EOR does, what each major provider says about its Nigeria service, what you actually receive, what the arrangement costs the company, and what to confirm before you sign.
Quick answer
An employer of record legally employs you in Nigeria for a foreign business that has no Nigerian entity. It pays your salary through Nigerian payroll, usually in naira. It deducts PAYE tax and your 8% pension contribution, adds at least 10% employer pension, and arranges health and group life insurance. The foreign company sets your work and your pay level. Get the EOR's name, the salary currency and your benefits in writing before you accept.
How international companies hire employees in Nigeria
A foreign company has five common ways to bring someone in Nigeria onto its team. Which route it picks decides your legal status, your currency and whether you get a pension and health cover.
| Hiring route | Your status | What you usually get |
|---|---|---|
| Its own Nigerian subsidiary | Employee of the local company | Naira salary, PAYE, pension, HMO |
| Employer of record (EOR) | Employee of the EOR | Naira salary, PAYE, pension, HMO, foreign manager |
| Direct contract | Independent contractor | Invoice-based pay, often in dollars, no pension or HMO |
| Contractor platform (e.g. Deel or Remote contractor products) | Independent contractor | Dollar payouts to a platform wallet, no benefits |
| Staffing or outsourcing firm | Employee or contractor of the agency | Depends entirely on the agency's contract |
A company with a large Nigerian team may register its own subsidiary. That takes time and needs local accounting, payroll and legal support. A company hiring one or a few people in Nigeria usually picks between a contractor arrangement and an EOR. The EOR is the only way it can offer you real employment without setting up a company here.
Being a contractor and being an EOR employee are different legal positions, with different tax and protection consequences. Our guide on choosing between contractor and employee status covers that decision in depth. This article covers what happens once a company chooses the EOR route.
What an employer of record does in Nigeria
An EOR is a company that already has a registered Nigerian entity and payroll set up. When a foreign client wants to hire you, the EOR signs the employment contract with you, and the client pays the EOR your salary, the employer's statutory costs and a service fee.
Remote describes its own position plainly on its Nigeria employer of record page: "On paper, Remote is the official employer." The page also says Remote owns its Nigerian legal entity rather than subcontracting to a local partner. Globalization Partners (G-P) says on its Nigeria EOR guide that the client company keeps day-to-day direction of the work.
In practice, the EOR handles:
- your written employment contract under Nigerian law
- monthly payroll and payslips
- PAYE income tax deduction and remittance
- pension contributions to your Retirement Savings Account (RSA)
- health insurance and group life insurance enrolment
- statutory leave rules, and the paperwork when your employment ends
The foreign company still interviews you, decides your salary band, assigns your work, runs your performance reviews and decides whether to keep you. Your manager might be in Berlin or Austin, but your payslip comes from the EOR's Nigerian entity.
Who is actually your employer?
Legally, the EOR is your employer. Practically, the client company controls your job. That split matters in two situations. Benefits questions (a missing pension remittance, an HMO problem) go to the EOR's support team. Job questions (promotion, workload, a pay rise) go to your manager at the client company. If the client company decides to end your role, it instructs the EOR, and the EOR carries out the termination under your Nigerian contract.
The main EOR providers in Nigeria and what they say (as of October 2026)
Several global EOR firms advertise employment services in Nigeria. The table summarises what each provider's own Nigeria page stated when we checked in October 2026. These pages are written for employers, they are sales pages, and they don't always agree with each other, so treat them as each provider's description and not as independent figures.
| Provider | What its Nigeria page says |
|---|---|
| Deel | Fee from $599 a month; estimated employer cost 14.5% of salary; monthly naira payroll; mandatory private healthcare through AXA |
| Remote | From $599 a month on annual contracts; own Nigerian entity; paid monthly in arrears in naira; mandatory health insurance with four plan tiers |
| Oyster | Employer taxes listed as 21% of gross (pension 10%, health insurance 10%, accident 1%); payroll in naira |
| G-P | Written contract required; salary should be stated in naira; probation up to 3 months unless negotiated |
Sources: Deel's Nigeria hiring page, Remote's Nigeria EOR page, Oyster's guide to hiring employees in Nigeria and G-P's Nigeria EOR guide, all checked October 2026.
Deel's page breaks its 14.5% estimate into pension (10%), Industrial Training Fund (1.1%), group life insurance (1.8%), Nigeria Social Insurance Trust Fund (NSITF, 1%) and an employer liability administrative fee (0.6%). Deel also says a hire can start in as little as two days.
Multiplier and other firms also market EOR services for Nigeria. We couldn't open Multiplier's Nigeria page when researching this guide, so check its current terms on its own website.
You don't choose the provider. The company hiring you does. Still, knowing which EOR is involved tells you whose app you'll use for payslips and leave, which HMO you'll likely be on, and whose support team to contact.
What you get as an EOR employee in Nigeria
An EOR contract gives you the statutory package of a Nigerian employee, plus whatever extras the client company chooses to fund. Here is what to expect, item by item.
A salary paid through Nigerian payroll, usually in naira
Most EOR employees in Nigeria are paid in naira. Deel's and Remote's Nigeria pages both list the naira as the payroll currency. G-P goes further and advises that offers and contracts "should always state the salary and any compensation amounts in Nigerian naira."
This is the biggest practical difference from contractor work, where you often receive dollars into an app or a domiciliary account. If the job advert quoted a dollar figure, ask how it becomes naira:
- Is your salary fixed in naira, or is it a dollar amount converted each month?
- If it's converted, which exchange rate is used and on what date?
- Who carries the exchange-rate risk if the naira moves?
A naira salary fixed at signing can lose purchasing power if the naira weakens, so a dollar-linked salary or a scheduled review is worth asking for. Not every company will agree. Remote's page says pay arrives in equal monthly instalments, on or before the last working day of the month, in arrears.
PAYE tax deducted before you're paid
As your employer, the EOR deducts Pay-As-You-Earn (PAYE) income tax from your salary and remits it to the tax authority of the state where you live. You don't file and pay the tax on this income yourself the way a contractor does, although you should keep your payslips. Some EOR pages for Nigeria still show tax bands from before the Nigeria Tax Act 2025, so don't use them to estimate your take-home pay. Our guide to tax for remote workers in Nigeria explains the current rules.
Pension: 8% from you, at least 10% from the employer
Under the Pension Reform Act 2014, the minimum contribution is 18% of your monthly emoluments: at least 10% from the employer and at least 8% from you, according to PwC's Nigeria tax summary (last reviewed 29 May 2026). Both parts go into your Retirement Savings Account with a Pension Fund Administrator (PFA) you choose. If you already have an RSA PIN from a previous job, give it to the EOR. Don't open a second account.
The rates may change. In July 2026, PenCom's Director-General, Omolola Oloworaran, said the review of the 2014 Act would raise the employer's contribution only, not the employee's, but that no final decision had been taken, Nairametrics reported. As of October 2026, check your payslip against the rate your EOR says it applies.
Health insurance through an HMO or private plan
Deel and Remote both describe health insurance for their Nigerian employees as mandatory. Deel names AXA as its mandatory private healthcare provider, and Remote offers Standard, Premium, Gold and Platinum tiers, with dental and vision excluded only from Standard. In practice you'll be enrolled with a health maintenance organisation (HMO) or an insurer's hospital network.
Ask three questions before you sign:
- Which plan tier will I be on, and who pays for it?
- Are my spouse and children covered, or only me?
- Which hospitals in my city are on the list?
A plan whose nearest hospital is two hours away is worth much less than its name suggests.
Group life insurance
Nigerian employers must take out group life insurance for employees worth at least three times their annual emolument, according to PwC's summary. Remote's page describes its cover as statutory, fully employer-funded and automatic. You don't pay for it, but you should know who your beneficiaries are and make sure the EOR has their details.
National Housing Fund: check whether it applies
The National Housing Fund (NHF) is a 2.5% deduction remitted to the Federal Mortgage Bank of Nigeria. PwC's summary says private-sector employees are no longer compulsorily covered and may contribute voluntarily, while the deduction remains compulsory for public-sector workers. Some EOR guides still list it as standard. If your payslip shows an NHF deduction, ask the EOR whether it is required in your case or optional.
Costs the employer pays that you won't see on your payslip
Some statutory costs come from the employer's side and never reduce your pay. Deel's page lists NSITF (the employees' compensation scheme, which covers work injuries) at 1% and the Industrial Training Fund at 1.1%. These items make an EOR hire more expensive for the company, which feeds into the salary it offers you (covered further down).
Leave, sick days and notice
The providers mostly agree on sick leave, maternity leave and notice periods. They disagree on annual leave.
| Entitlement | What the provider pages say |
|---|---|
| Annual leave | 6 days after 12 months (Remote, G-P); 12 days after the first year (Oyster) |
| Sick leave | 12 paid days a year with medical proof (Remote, Oyster, G-P) |
| Maternity leave | 12 weeks at 50% pay (Remote, Oyster, G-P) |
| Paternity leave | No national entitlement (Remote, Oyster) |
| Notice, 2 to 5 years' service | Two weeks (Remote, Oyster) |
The statutory minimums are low. Notice under the default rules ranges from one day (under three months' service) to one month (over five years). Remote describes Nigeria as effectively at-will, with severance not required by law. Many client companies give much more: 20 or more days of leave, longer notice periods and paid parental leave. That comes only from your contract, though, not from the law, so read the leave and termination clauses closely.
What an EOR costs the company, and why that shapes your salary
An EOR hire costs the company your salary, plus the employer's statutory costs, plus the EOR's monthly fee. That total is what the company budgets, so the more the extras cost, the less is left for your salary.
Example (hypothetical): a company budgets for a Nigeria-based operations specialist on a gross salary of $1,500 a month, which is about ₦2,043,000 at ₦1,362 to $1 (CBN NFEM weighted average, 23 October 2026). Using Deel's published estimate of 14.5% employer costs and its starting fee of $599, the monthly cost looks like this:
| Item | Monthly amount |
|---|---|
| Gross salary | $1,500 |
| Employer statutory costs (14.5%) | $217.50 |
| EOR fee (starting price) | $599 |
| Total cost to the company | $2,316.50 |
In this example, the company pays about $816 a month on top of your salary, more than half your salary again. For lower-paid roles the fee hits harder. That is one reason some companies offer contractor terms instead, and why the same job can be advertised with a higher dollar figure for contractors than for EOR employees. The figures are illustrative: real fees depend on the provider, the contract length and any negotiated discount.
Your own deductions come out of the gross salary. In the example, if your full gross counted as pensionable emoluments (in practice usually basic pay plus housing and transport allowances), your 8% pension would be ₦163,440 a month. PAYE comes on top of that. The employer's 10% pension goes into your RSA in addition to your salary.
Location-based pay: what a real job advert shows
Companies hiring through EORs usually set pay by country, not one global rate. Here is one example from a live advert.
GiveDirectly's Senior Manager, Marketing Strategy & Operations advert, checked in October 2026, lists Nigeria among the countries where it is prioritising hiring "where we can employ you through a GD entity or an established employer of record." The advert gives different base salaries for different countries: $120,750 in the United States, £77,600 in the United Kingdom and $83,820 in Kenya. For other countries, including Nigeria, it says a salary benchmark will be shared during the hiring process.
Two things follow from this. First, "remote" and "employed through an EOR" don't mean you'll get US pay. Second, this employer, like many others, tells you the benchmark for your country during the process, so ask for it early and compare it with your expectations before you invest hours in assessments. Adverts change and close, so check the live listing. Our planned guide on how international companies set salaries for remote employees goes further into pay benchmarking.
EOR employee or contractor: a short comparison for workers
Some companies offer you a choice, and others decide for you. In brief:
| Factor | EOR employee | Contractor |
|---|---|---|
| Pay currency | Usually naira | Often dollars |
| Pension and HMO | Included | You arrange your own |
| Tax | PAYE deducted for you | You file and pay yourself |
| Proof of employment | Payslips and a contract | Invoices and a contract |
| Job security | Nigerian contract terms | Contract terms only, often shorter notice |
An EOR employee usually gets more stability and paperwork that banks and visa officers recognise. A contractor usually gets more cash in hand and dollar earnings, but carries their own tax, pension and health costs. The full decision, including the risks of being misclassified, is covered in our contractor or employee guide for Nigerians. If you take contractor terms, our guide on receiving dollar payments in Nigeria covers the withdrawal options.
Questions to ask before you sign an EOR contract
An EOR offer arrives as two things: an offer from the client company and a Nigerian employment contract from the EOR. Check that both say the same thing. Before signing, get written answers to these questions:
- What is the name of the EOR's Nigerian entity that will employ me?
- Is my salary stated in naira or dollars, and if it's converted, at what rate and on what date?
- Is the quoted figure gross or net, and what is my estimated take-home pay after PAYE and pension?
- Which items count as pensionable emoluments (basic, housing, transport)?
- Which health plan tier am I on, and are dependants covered?
- How many days of annual leave do I get, and is there paid parental leave?
- What is the probation period, and what notice applies during and after it?
- Is there an allowance for equipment, internet or power backup?
- If I'm offered equity or a bonus, which company grants it and under what plan?
- What happens if the client company stops using this EOR, or moves my contract to another one?
Questions 8 and 10 are the ones people forget. A laptop and an internet stipend matter a lot when you're paying for an inverter, a solar setup and two data subscriptions. A change of EOR can mean a new contract, so ask whether your length of service and leave balance carry over. For a full clause-by-clause review, see our planned guide on what to check in a remote work contract before signing, and for the wider offer, the planned list of questions to ask before accepting a remote job offer.
How to tell a genuine EOR offer from a scam
Scammers know that Nigerians recognise names like Deel and Remote, and they borrow those names. A genuine EOR offer follows a recognisable pattern:
- You interviewed with real people at the client company, by video, over more than one stage.
- The contract arrives through the EOR's own platform, in an account you create on its official website, not as a PDF over WhatsApp or Telegram.
- No one asks you to pay for onboarding, equipment, training or "processing".
- Requests for your NIN, BVN, bank details and RSA PIN come through the platform during onboarding, after you've accepted an offer, not before an interview.
- The sender's email domain matches the client company or the EOR, not a free email address.
If anything asks you to pay first, stop. Our guide to spotting remote job scams in Nigeria covers the wider set of warning signs.
Nigeria-specific practicalities for EOR employees
Onboarding with an EOR in Nigeria is mostly paperwork, but have these ready so your first payroll isn't delayed:
- Identity and banking: your NIN, BVN and a naira account in your own name. Remote's page says onboarding depends on you submitting all required information and on registration with local authorities, and its payroll cut-off is the 10th of the month, so late documents can push your first salary to the following month.
- Pension: your existing RSA PIN, or a PFA chosen in advance if this is your first formal job.
- Workspace: an inverter or solar backup and two internet connections (for example a fibre line plus a MiFi or phone hotspot). Your EOR contract makes you an employee, but power cuts are still your problem, so ask about allowances.
- Time zones: Nigeria is on WAT (UTC+1) all year. A manager in New York is 5 hours behind Lagos in summer and 6 hours behind from 1 November 2026, so a 10am meeting in New York is 4pm in Lagos in winter. A manager in Berlin keeps the same time as Lagos in winter.
When you're looking for roles, read where a listing says applicants may live. A role open to "Nigeria" or "EMEA" with an EOR named in the benefits section tells you the company already has a way to employ you here.
Frequently asked questions
Are Deel or Remote employees in Nigeria paid in dollars?
Usually not. Deel's and Remote's Nigeria pages list the naira as the payroll currency for EOR employees, as of October 2026. Dollar payouts through these platforms are typical of their contractor products, not EOR employment. If your offer quotes dollars, ask how and when the figure converts to naira.
Is an employer of record my real employer?
Yes, legally. The EOR's Nigerian entity signs your employment contract, runs payroll and handles statutory obligations. The client company directs your daily work and decides your pay level, promotions and whether your role continues.
Does an EOR pay pension in Nigeria?
Yes. Under the Pension Reform Act 2014, the employer contributes at least 10% of your monthly emoluments and you contribute at least 8%, both paid into your Retirement Savings Account. Check that remittances appear in your PFA statement every month.
Can a foreign company hire me in Nigeria without a Nigerian office?
Yes, either through an employer of record, which employs you on its behalf, or by engaging you as an independent contractor. Only the EOR route makes you a salaried employee with PAYE, pension and health cover without the company registering its own entity here.
Why is the EOR salary lower than the contractor rate for the same job?
The company pays the EOR's fee and the employer's statutory costs on top of an EOR salary, and those can add up to several hundred dollars a month. A contractor gets more cash, but pays their own tax, pension and health costs and has fewer protections.
Do I pay the EOR anything?
No. The client company pays the EOR's fees. Your only deductions are statutory ones from your salary, such as PAYE and your pension contribution. Anyone asking you to pay to receive or start an EOR contract is not running a genuine hiring process.
What happens if the client company ends my contract?
The client company instructs the EOR, and the EOR ends your employment under the notice terms in your Nigerian contract. Statutory notice is short (one week to one month for most service lengths), so the contract's own notice and severance terms matter more.
Will an EOR job help with a visa or loan application?
It often helps, because you can show payslips, a Nigerian employment contract and pension records, which banks and embassies understand. Requirements vary by bank and country, so check the specific list. Our digital nomad visa guides show the income evidence each country asks for.
Key takeaways
- An employer of record legally employs you in Nigeria for a foreign company that has no Nigerian entity. The client company directs your work.
- EOR employees in Nigeria are usually paid monthly in naira, with PAYE and an 8% pension contribution deducted, plus at least 10% employer pension paid into your RSA.
- Health insurance and group life cover come with the job. Check the plan tier, dependants and hospital list.
- The EOR's fee and the employer's statutory costs come out of the company's hiring budget, which is why EOR salaries can be lower than contractor rates.
- Statutory leave and notice in Nigeria are minimal, so read your contract's own terms.
- Get the EOR entity, currency, gross and net pay, and benefits in writing, and never pay anyone to receive an offer.
Next steps
If you're comparing an EOR offer with contractor terms, start with our guide to contractor and employee status in Nigeria. If you're still searching, browse remote jobs open to applicants in Nigeria and check where each listing says applicants may live. After you search, use "Get email updates" to receive a free daily email of new matching roles. When an offer arrives, work through the ten questions above before you sign.
Sources
- Employer of Record in Nigeria, Remote (Country Explorer)
- Hire and pay employees in Nigeria, Deel
- How to hire and pay employees in Nigeria, Oyster
- Nigeria Employer of Record guide, Globalization Partners (G-P)
- Nigeria: Other taxes, PwC Worldwide Tax Summaries (last reviewed 29 May 2026)
- PenCom DG says proposed pension contribution increase applies only to employers, Nairametrics (22 July 2026)
- Senior Manager, Marketing Strategy & Operations, GiveDirectly (Greenhouse job ad, checked October 2026)
- CBN exchange rates by currency
