Pension Calculator (Nigeria)
Updated November 2026 · Free · No sign-up
Calculate Nigerian pension contributions — the CPS minimum 8% employee + 10% employer on monthly emoluments (basic + housing + transport), your RSA inflow, and a retirement projection.
Quick answer: CPS contributions: 18% of monthly emoluments minimum — 8% from you, 10% from the employer — into your Retirement Savings Account (RSA) with your chosen PFA. On ₦500,000 emoluments: ₦90,000/month flows to your RSA.
How the CPS Works
The Pension Reform Act’s Contributory Pension Scheme: 8% employee + 10% employer (minimums — employers may pay the full 18%+) on basic + housing + transport allowances, remitted within 7 days of salary payment to your RSA at the PFA you choose (portable via the transfer window annually). Mandatory for employers with 3+ staff.
Worked Example
₦500,000 emoluments: you ₦40,000 + employer ₦50,000 = ₦90,000/month; 20 years at 10% returns compounds to roughly ₦68-70M — the voluntary-contribution (AVC) line on top is tax-deductible and accelerates it.
Access Rules
| Retirement (50+ or per contract) | 25%+ lump sum + programmed withdrawals/annuity from the rest |
| Job loss before 50 | 25% of the RSA after 4 months without re-employment |
| Mortgage equity | Up to 25% usable toward a residential mortgage deposit |
| AVCs | Voluntary top-ups, tax-deductible, 50% accessible after 2 years |
Compliance Self-Defense
Check RSA statements against payslips monthly — unremitted deductions are endemic; PenCom’s recovery process (with penalties) works but needs your report. The 7-day remittance rule is the employer’s hard deadline. Pair with gratuity where schemes exist, and the PAYE math — pension deducts pre-tax.
Frequently Asked Questions
What are Nigeria’s pension contribution rates?
Minimum 8% employee + 10% employer on basic + housing + transport — 18% total into your RSA; employers can bear the full amount at 20%+.
Can I access my pension before retirement?
25% of the RSA after 4+ months of job loss (under 50), mortgage-equity use up to 25%, and 50% of AVCs after 2 years.
Can I change my PFA?
Yes — the annual RSA transfer window moves your account (and history) to any PFA; performance comparison is worth the paperwork.
What if my employer deducts but doesn’t remit?
Report to PenCom — recovery with penalty interest is standard; the 7-working-day remittance deadline is statutory.
Are voluntary contributions worth it?
AVCs are tax-deductible with the same RSA growth — the cleanest tax shelter in the Nigerian payroll system.
✓ Formula verified • Last updated: November 3, 2026