The Taxberg
₦31,154
Net pay
₦3,462
Tax the employer pays
₦3,462
Tax you pay
Total tax paid
₦6,923
Did you know your employer also pays tax on your salary? It costs the employer ₦3,462 to pay you ₦34,615. In other words, every time you spend ₦10 of your hard-earned money, ₦2.00 goes to the government.
Real tax rate
18.2%
So, with you and the employer both paying tax, what used to be a 10% tax rate now rises to 18.2%, meaning your real tax rate is actually 8.2% higher than what it seemed at first.