Glossary
What is paye?
PAYE — Pay As You Earn — is personal income tax deducted from an employee's salary by the employer and remitted to the tax authority monthly.
Updated 7 August 2026
The employer calculates it, deducts it from the pay, and remits it. The employee sees it as a deduction on the payslip.
In Nigeria it is remitted to the state revenue service of the state where the employee resides, and annual returns are due in January.
Longer read: how paye works in nigeria