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 August 7, 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
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