Video 05 · 2 min
Payroll setup
Pay structures, pay items, pension fund administrators and the statutory rules behind every Nigerian payslip.
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TranscriptEverything the narrator says, with times
QadraHR. Payroll setup. Pay structures, pay items, pension fund administrators and the statutory rules behind every Nigerian payslip.
Before the first payroll run, Funmilayo Bello, Lagoon's finance manager, sets up how people are paid. It starts with pay structures: how each employee's gross salary splits into basic, housing, transport and other allowances. That split is what drives pension and tax.
Different grades can have different splits. Directors, for example, might carry a larger housing component. Each structure applies to the grades you choose, and any change applies only to runs created afterwards, so past payroll never moves.
Next, pay items: everything paid or deducted beyond PAYE, pension and N.H.F. Start from the common Nigerian set, call, internet and transport allowances, welfare, loans, N.S.I.T.F. and I.T.F., then adjust it to your policy.
Adding your own is just as quick. Lagoon pays drivers a hazard allowance. Give it a name and a code, mark whether it is taxable and pensionable, and it becomes a column in payroll schedules and a line on payslips.
Pensions. The P.F.A. register comes loaded with PenCom's codes for every licensed pension fund administrator. Add your employer code with each P.F.A. and its custodian account, and pension schedules are ready to remit.
And the law itself. Rule packs hold the statutory rules payroll computes with: the 2026 PAYE bands, eight and ten percent pension, two and a half percent N.H.F., and rent relief. They are maintained and signed off by the QadraHR platform team, so when the law changes, every customer is updated at once.
Each run snapshots the rule pack in force when it is calculated, so a payslip from March can always be explained, even after the law moves on.
That's Payroll setup in QadraHR. Pay structures split gross into basic, housing and transport. Pay items for every allowance and deduction you use. A PenCom-coded PFA register with your employer codes. Statutory rules maintained and signed off by the platform.
What you'll learn
- Pay structures split gross into basic, housing and transport
- Pay items for every allowance and deduction you use
- A PenCom-coded PFA register with your employer codes
- Statutory rules maintained and signed off by the platform
