Overtime Pay Calculator Nigeria — 1.5x, 2x & Custom Rates
Calculate overtime pay from monthly salary or hourly rate. Supports 1.5x, 2x multipliers and custom rates. Shows total earnings breakdown.
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Overtime Pay in Nigeria
Under the Nigerian Labour Act, the maximum working hours are 8 hours per day and 40 hours per week. Work beyond these limits is considered overtime. While the Act doesn't prescribe a specific overtime rate, the standard practice in Nigerian companies is to pay 1.5× the regular hourly rate for weekday overtime and 2× for Sundays and public holidays.
Frequently Asked Questions
What is the legal overtime rate in Nigeria?
Nigerian labour law does not specify a universal statutory overtime multiplier. Overtime pay is typically governed by employment contracts, collective bargaining agreements, or company policy. The common rate is 1.5× (time-and-a-half) for regular overtime, and 2× (double time) for public holidays or Sundays. Always check your contract.
How is the hourly rate calculated from monthly salary?
Monthly salary to hourly rate: Hourly rate = Monthly salary × 12 / (52 weeks × hours per week). For a standard 40-hour work week: Hourly rate = Annual salary / 2,080 hours. In Nigeria, a 40-hour week is standard for most formal sector jobs (Labour Act specifies max 8 hours/day, 40 hours/week).
Is overtime pay subject to PAYE tax in Nigeria?
Yes. Overtime pay is part of your gross income and is subject to PAYE tax. Your employer will include overtime pay in your monthly payslip and deduct PAYE accordingly. There is no separate tax treatment for overtime income in Nigeria.
Are there limits on overtime hours in Nigeria?
The Labour Act limits total working hours including overtime. Workers generally should not work more than 12 hours in any single day. There is no explicit annual cap, but excessive overtime that violates occupational health and safety standards is prohibited. Employees can refuse unreasonable overtime except in emergencies.
What is double time and when does it apply?
Double time (2× regular rate) typically applies when working on Sundays, public holidays, or after an employee has already worked a specified number of overtime hours. This is usually defined in your employment contract or the company's HR policy document.