Forward Calculation (Salary → Net Pay)

1. Calculate your gross income. This is the sum of your basic salary and any allowances you receive. Allowances can include commissions, bonuses, overtime, and other emoluments.
2. Calculate your allowances. This includes any additional income you receive on top of your basic salary, such as commissions, bonuses, overtime, and other emoluments.
3. Add any employer deductions. These could be deductions for a payday loan or credit, if any. These are subtracted from your gross income.
4. Calculate NAPSA. This is a mandatory contribution to National Pension Scheme Authority and is calculated as 5% of your gross earnings.
5. Calculate NHIMA. This is a mandatory health insurance contribution and is calculated as 1% of your basic salary.
6. Calculate your taxable income. This is your gross income minus any non-statutory and statutory deductions. Non-statutory deductions can include personal contributions to pension schemes, while statutory deductions include social security, health insurance and PAYE.
7. Take note of your taxable income balance after deductions. This is the amount of income that is subject to tax.
8. Calculate PAYE. This is calculated using the ZRA tax bands for 2025. The tax rate varies depending on your income level, with higher incomes being taxed at a higher rate.

Reverse Calculation (Take-Home → Salary)

Want to know what salary you need to get a specific amount in your pocket? Use our reverse calculator!

Perfect for:

• Salary negotiations - ask for the right amount
• Comparing job offers
• Budget planning
• Setting salary goals

Just enter how much you want to take home and we'll calculate the gross salary you need to earn.