Fg and nlc on new salary
You're asking about the tax implications of a new salary, specifically the impact of the Federal Government's "FG" (Federal Government) and the National Living Wage's "NLW" on your take-home pay.
Here's a breakdown:
Federal Government (FG)
The Federal Government's tax rates are as follows:
- 0% on the first ₦18,000
- 7.5% on the next ₦18,000 (₦18,000 - ₦36,000)
- 11% on the next ₦57,000 (₦36,000 - ₦93,000)
- 15% on the next ₦2,000,000 (₦93,000 - ₦2,093,000)
- 24% on the next ₦1,000,000 (₦2,093,000 - ₦3,093,000)
- 30% on the next ₦1,000,000 (₦3,093,000 - ₦4,093,000)
- 35% on the next ₦1,000,000 (₦4,093,000 - ₦5,093,000)
- 37% on the next ₦1,000,000 (₦5,093,000 - ₦6,093,000)
National Living Wage (NLW)
The National Living Wage is ₦30,000 per month, which is the minimum wage for employees in Nigeria.
Impact on Take-Home Pay
Assuming you're earning a new salary, let's say ₦500,000 per month. Here's a rough estimate of your take-home pay:
- FG Tax: ₦500,000 - ₦18,000 (0% tax bracket) = ₦482,000 FG Tax: ₦482,000 - ₦36,000 (7.5% tax bracket) = ₦446,000 FG Tax: ₦446,000 - ₦93,000 (11% tax bracket) = ₦353,000 FG Tax: ₦353,000 - ₦2,093,000 (15% tax bracket) = ₦260,000 FG Tax: ₦260,000 - ₦3,093,000 (24% tax bracket) = ₦167,000 FG Tax: ₦167,000 - ₦4,093,000 (30% tax bracket) = ₦74,000 FG Tax: ₦74,000 - ₦5,093,000 (35% tax bracket) = ₦0 (no tax)
Take-Home Pay: ₦74,000
Keep in mind that this is a simplified calculation and doesn't take into account other factors that might affect your take-home pay, such as:
- Other taxes (e.g., Value Added Tax, Capital Gains Tax)
- Pension contributions
- National Health Insurance contributions
- Other deductions (e.g., union dues, loan repayments)
It's always a good idea to consult with a tax professional or financial advisor to get a more accurate estimate of your take-home pay.