NHIS employer contribution Nigeria: Complete Guide (2026)

Your business hit 5 employees and now you’re getting letters about NHIS registration. Here’s the reality: NHIS employer contribution in Nigeria is 10% of each employee’s basic salary, while employees contribute 5% [SOURCE: National Health Insurance Authority Act 2022]. This isn’t optional anymore — it’s mandatory for all employers with 5 or more employees.

Quick math: If your employee earns ₦400,000 gross with ₦240,000 basic salary, you pay ₦24,000 monthly for NHIS while they contribute ₦12,000. That’s ₦36,000 total going toward their healthcare coverage.

What You’ll Need

• Requirements: Valid business registration, employee records, chosen HMO partner
• Estimated cost: 10% of total basic salary payroll monthly
• Timeline: 30-45 days for full enrollment and first remittance

How NHIS Employer Contribution Nigeria Works

The National Health Insurance Authority Act 2022 expanded mandatory coverage from businesses with 10+ employees down to 5+ employees [SOURCE: NHIS Act 2022]. This means more Nigerian businesses now fall under the NHIS net.

Here’s your contribution breakdown:

• Employee pays: 5% of basic salary
• Employer pays: 10% of basic salary
• Total coverage: 15% of basic salary funds healthcare

[IMAGE: Split-screen showing employee vs employer NHIS contribution percentages with naira amounts]

What Basic Salary Means for NHIS

NHIS contributions are calculated on basic salary only — not gross salary. If you pay an employee ₦500,000 gross but their basic salary is ₦300,000, NHIS is calculated on the ₦300,000.

Real example:

• Gross salary: ₦500,000
• Basic salary: ₦300,000
• Employee NHIS: ₦15,000 (5% of ₦300,000)
• Employer NHIS: ₦30,000 (10% of ₦300,000)

Step-by-Step NHIS Enrollment for Employers

Step 1: Register Your Business with NHIS

Visit the NHIS portal or your state office with:

• Certificate of incorporation
• Tax identification number
• Employee records
• Bank account details

Timeline: 7-14 days for approval
Cost: Registration is typically free

Pro tip: Start this process before you hit 5 employees. The penalties for late enrollment aren’t worth the delay.

Step 2: Choose Your HMO Partner

NHIS works through Health Maintenance Organizations (HMOs). Your employees will receive healthcare through your chosen HMO network.

Popular HMO options include:

• Hygeia HMO
• Integrated Healthcare Holdings
• Total Health Trust
• RedCare HMO
• Clearline HMO

Pro tip: Survey your employees about preferred hospitals in their areas before choosing an HMO.

Step 3: Enroll Your Employees

Each employee needs:

• NHIS enrollment form
• Passport photograph
• Valid ID (NIN, driver’s license, voter’s card)
• Employment letter

Timeline: 14-21 days for employee cards to be issued

Step 4: Set Up Monthly Remittance

NHIS contributions must be remitted monthly along with your employee data and contribution schedules.

Deadline: Within 30 days of salary payment
Method: Bank transfer to designated NHIS account or through approved payment platforms

NHIS Coverage: What Your Employees Get

Your NHIS employer contribution in Nigeria covers complete healthcare for employees and up to 4 dependents (spouse and 3 children under 18) [SOURCE: NHIS Act 2022].

Covered services include:

• Primary healthcare consultations
• Specialist consultations (with referral)
• Hospital admissions
• Prescription medications (from NHIS drug list)
• Laboratory tests and diagnostics
• Maternity care (antenatal, delivery, postnatal)
• Emergency care
• Basic dental care

Not covered:

• Cosmetic procedures
• Non-essential surgeries
• Private hospital room upgrades
• Medications not on NHIS essential drug list
• Treatment abroad

For more detailed information on NHIS coverage benefits, visit the National Health Insurance Authority official website.

[IMAGE: Infographic showing covered vs non-covered NHIS services]

NHIS Contribution Cost Breakdown

Here’s what different salary levels cost you monthly:

Basic Salary	Employee NHIS (5%)	Employer NHIS (10%)	Total Monthly
₦100,000	₦5,000	₦10,000	₦15,000
₦200,000	₦10,000	₦20,000	₦30,000
₦300,000	₦15,000	₦30,000	₦45,000
₦500,000	₦25,000	₦50,000	₦75,000

Or skip the manual calculations — Lint Payroll computes NHIS automatically and handles remittance for ₦500 per employee monthly.

Common NHIS Compliance Mistakes

1. Calculating on Gross Instead of Basic Salary

Many employers mistakenly calculate NHIS on total gross salary instead of just basic salary. This inflates your contribution unnecessarily.

2. Missing the 5-Employee Threshold

Some businesses try to stay under 5 employees to avoid NHIS. The Act covers “5 or more employees” — temporary or contract staff count toward this threshold.

3. Late Registration After Hitting 5 Employees

You have 30 days from when you hit 5 employees to register. Late registration carries penalties of up to ₦50,000 [SOURCE: NHIS Act 2022].

4. Incomplete Employee Enrollment

Enrolling yourself but forgetting junior staff or remote employees. All employees must be covered equally.

5. Missing Monthly Remittance Deadlines

Late remittances attract penalties and can suspend your employees’ healthcare access.

NHIS Penalties for Non-Compliance

The 2022 Act introduced stricter penalties:

• Failure to register: Up to ₦500,000 fine
• Late registration: ₦50,000 fine
• Non-remittance: 10% penalty on outstanding amount plus 2% monthly interest
• False information: Up to ₦1,000,000 fine or 2 years imprisonment

[SOURCE: National Health Insurance Authority Act 2022, Section 87-89]

These aren’t empty threats — NHIS has stepped up enforcement significantly since 2026.

Frequently Asked Questions

Q: Do contract staff and consultants count toward the 5-employee threshold?

A: Yes. The Act covers all individuals providing services, regardless of employment classification [SOURCE: NHIS Act 2022]. If you regularly have 5+ people working for your business, you likely need NHIS coverage.

Q: Can I choose different HMOs for different employees?

A: No. All employees under one employer must use the same HMO. However, employees can request HMO changes during annual renewal periods.

Q: What happens if an employee leaves mid-month after NHIS payment?

A: NHIS contributions aren’t prorated. If you’ve paid for the month, the employee retains coverage through that month. New employers take over from the following month.

Q: Are remote employees working from other states covered?

A: Yes, but ensure your chosen HMO has network hospitals in your remote employees’ locations. Some HMOs have limited state coverage.

Q: How do I handle NHIS for employees who already have private health insurance?

A: NHIS is mandatory regardless of existing coverage. Employees can maintain private insurance as supplementary coverage, but NHIS contributions are still required.

Q: What if my business drops below 5 employees?

A: Once enrolled, you typically remain in the NHIS system. However, you can apply for exemption if you maintain fewer than 5 employees for 12+ consecutive months.

Related Tools

• NHIS Contribution Calculator — Calculate exact monthly contributions by salary
• [HMO Comparison Tool] — Compare coverage areas and hospital networks
• [Payroll Tax Calculator] — See NHIS alongside other payroll taxes

Your employees’ health coverage shouldn’t be another administrative headache. Lint Payroll automatically calculates NHIS contributions, handles remittances, and keeps you compliant — all for ₦500 per employee monthly.

Start automating your NHIS compliance →

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Last updated: April 6, 2026
Sources: National Health Insurance Authority Act 2022, NHIS Official Guidelines
Reviewed by: Lint Compliance Team