Expatriate Employment Levy: The Key Things to Know
The Federal Government of Nigeria introduced, on 27th February 2024, the Expatriate Employment Levy, which mandates companies employing expatriates to pay a designated levy to the Government.
The Expatriate Employment Levy has the dual objective of promoting local talent utilization while also funding initiatives focused on skill development, job creation, and capacity building for indigenous workers.
Below are some of the key insights regarding the Expatriate Employment Levy and obligations of Nigerian companies with expatriate employees/staff.
Expatriate Employment Levy (“EEL”)
The EEL applies to expatriate staff, i.e. non-citizen or non-resident expatriates that occupy quota positions or are engaged by means of Temporary Work Permit, excluding the below;
- Accredited staff of diplomatic missions and government officials
- Seasonal/ Short-term and Temporary workers who are spending less than 183 days over a period of one year in Nigeria.
Private sector industries and companies that utilizes foreign workforce or rely on expatriate labor are affected by the EEL and employers are responsible for the payment of the new levy.
Amount Payable in Expatriate Employment Levy
Currently the amount payable as EEL is pegged at $15,000 USD for Directors and $10,000 USD for other categories of expatriate staff.
The Nigerian Immigration Service is designated to oversee the enforcement and payment of the levy and Employers are required to log in to the EEL payment portal, www.eel.interior.gov.ng to make the payment. Please note that the levy is payable annually.
Deadline for Payment of Expatriate Employment Levy
The deadline for payment is Thirty (30) days and the penalty for default payment is N 3,000,000 (Three Million Naira Only).
Obligations as an Expatriate Employer:
- Compliance: it is imperative to ensure full compliance with the newly implemented EEL. Failure to comply as regards filing existing expatriates, registration of new employees, renewing before expiration date and, submitting false information, results in penalty of up to N3,000,000.00 (Three Million Naira Only) fine.
- Maintaining Comprehensive Records: Employers are required to maintain comprehensive records related to their expatriate employee (s) as well as evidence of payment of their EEL, both of which are subject to audits by the Nigeria Immigration Service.
- Timely Reporting: Employers are required to provide information and updates as well as notify relevant agencies of changes within stipulated timeframes.
In conclusion, ensuring compliance with the newly implemented Expatriate Employment Levy in Nigeria is paramount to any affected company’s continued success and reputation.
Berkeley Legal is a leading business law firm in, Nigeria. We provide a comprehensive and sophisticated range of specialized and personalized legal services that are designed to meet the various needs of highly diversified local and international businesses.
If you would like to know more about the Expatriate Employment Levy please contact info@berkeleylp.com.
The information provided in this article is for general informational purposes only and does not constitute legal advice.
