A Sierra Leone employer does not finish payroll when net salaries reach the bank file. The monthly close also has to account for Pay As You Earn tax, or PAYE, employee and employer social security contributions, correct worker registration, separate payment evidence, and a return trail that can be matched back to the payroll register. A calculation can be numerically right and still leave the employer exposed if the return, contribution schedule or payment is late.
This guide was verified on August 13, 2026 against current public pages from the National Revenue Authority, or NRA, the NRA tax portal, the Finance Act 2026, and the National Social Security and Insurance Trust, or NASSIT. The NRA's February 2026 employer briefing confirms that the PAYE tax-free threshold remains Le 600, that the employee's 5% NASSIT deduction comes before PAYE, and that the Finance Act 2026 changed the treatment of redundancy and end-of-service benefits. NASSIT's current pages confirm the 5% employee and 10% employer shares and the deadline.
Use the Sierra Leone PAYE Calculator to estimate take-home pay and employer cost. Use the Payslip Generator to present deductions clearly and the Africa Business Tax Calendar to plan due dates. These are planning tools. They do not register workers, file returns or replace written advice from the NRA or NASSIT.
Sierra Leone Employer Payroll Snapshot For 2026
| Payroll item | Official position checked August 13, 2026 | Employer action |
|---|---|---|
| PAYE withholding | The NRA says employers must withhold PAYE and pay it by the 15th of the following month. | Calculate, file and pay from the same approved payroll register. |
| Resident PAYE | The NRA portal describes resident PAYE as progressive with a maximum rate of 30%. The NRA's 2026 briefing confirms a Le 600 tax-free threshold. | Apply each band only to the income slice within that band. |
| Employee NASSIT | 5% of earnings or basic salary, depending on the official page and payroll definition being applied, withheld by the employer. | Confirm the pensionable earnings base and deduct before PAYE. |
| Employer NASSIT | 10% paid by the employer on behalf of the employee. | Record it as an employer cost, not an employee deduction. |
| NASSIT payment | The total 15% is due within 15 days after month end with a contribution schedule. | Reconcile the schedule to payroll and keep receipt evidence. |
| Worker registration | NASSIT says employers must register workers, including temporary, seasonal, casual, probationary and provisional workers within its stated coverage. | Check registration before the first contribution is due. |
The two 15th-day obligations are administered separately. PAYE goes to the NRA. Social security contributions go to NASSIT. One payment does not satisfy the other, and a combined payroll total is not enough evidence. Keep separate control accounts, schedules, acknowledgements and receipts.
Currency labels deserve care. Sierra Leone redenominated its currency, and official pages sometimes display Le while newer systems use NLe or SLE. Payroll teams should use the unit shown by the current NRA portal, NASSIT payment instruction and bank channel, then keep that unit consistent across the register, return and payment reference. Do not multiply or divide a payroll value simply because an older source uses a different label.
How The Published PAYE Calculation Works
The NRA tax portal states that resident PAYE follows rates in the First Schedule of the Income Tax Act 2000 as amended, with a maximum rate of 30%. The current AfroTools calculator uses the published monthly structure: 0% on the first SLE 600, 15% on the next SLE 600, 20% on the next SLE 600, 25% on the next SLE 600, and 30% above SLE 2,400. The NRA's February 2026 employer briefing specifically confirms that the first SLE 600 remains non-taxable.
| Monthly taxable slice | Rate | Control point |
|---|---|---|
| First SLE 600 | 0% | Do not tax the exempt slice. |
| Next SLE 600 | 15% | Maximum tax on this slice is SLE 90. |
| Next SLE 600 | 20% | Maximum tax on this slice is SLE 120. |
| Next SLE 600 | 25% | Maximum tax on this slice is SLE 150. |
| Amount above SLE 2,400 | 30% | Apply 30% only to the excess. |
Progressive means the top rate is not charged on the full salary. Each slice keeps its own rate. The 5% employee NASSIT contribution is deducted before the PAYE computation, according to the NRA's 2026 employer briefing and tax guide. Payroll software should therefore expose gross or basic salary, the NASSIT base, employee NASSIT, taxable pay after the allowable deduction, PAYE, other deductions and net pay as separate fields.
A Formula Example At SLE 3,000 Basic Salary
This is a formula demonstration, not a fictional employee case. Assume the full SLE 3,000 is basic salary and within the normal NASSIT and resident PAYE treatment. Employee NASSIT is 5%, or SLE 150. Taxable pay for the PAYE band calculation is then SLE 2,850.
| Step | Calculation | Amount |
|---|---|---|
| Employee NASSIT | SLE 3,000 × 5% | SLE 150 |
| PAYE at 0% | First SLE 600 × 0% | SLE 0 |
| PAYE at 15% | Next SLE 600 × 15% | SLE 90 |
| PAYE at 20% | Next SLE 600 × 20% | SLE 120 |
| PAYE at 25% | Next SLE 600 × 25% | SLE 150 |
| PAYE at 30% | Remaining SLE 450 × 30% | SLE 135 |
| Total PAYE | SLE 90 + 120 + 150 + 135 | SLE 495 |
| Net before other deductions | SLE 3,000 - 150 - 495 | SLE 2,355 |
The employer's NASSIT share is a further SLE 300, so salary plus employer NASSIT is SLE 3,300 before any other employer costs. Recheck the live NRA calculator and NASSIT definition before using this example for a real payroll, especially when earnings include allowances, benefits, arrears, a second employment, termination payments or a worker outside the ordinary resident treatment.
NASSIT Registration, Contributions And Compliance
NASSIT places the responsibility for registration and contribution payment on the employer. Its registration page says even an organisation with one worker must ensure that the worker is registered. It lists permanent, temporary, seasonal, casual, probationary and provisional workers within the covered group, subject to the age and other rules stated on that page. The employer should have the worker complete the relevant member registration form when the worker does not already have a social security number.
The contribution is shared 2:1. The employer deducts 5% from the employee and adds 10%, producing a total 15% payment. NASSIT says payment should be accompanied by a completed contribution schedule or Advice of Payment of Contribution form. For concurrent employment, its contribution page says each contributing employer must pay on the wages or earnings it provides.
The payment deadline is within 15 days after the end of the month. NASSIT's compliance page says late contribution amounts attract interest linked to the 90-day Treasury bill rate, with additional enforcement consequences after a demand note. The exact charge depends on the current statutory formula and timing, so calculate it with NASSIT rather than using an old spreadsheet estimate.
A useful reconciliation has four totals: employee NASSIT withheld from payslips, employer NASSIT booked as an expense, the combined contribution schedule, and the amount paid. The first two should add to the third, and the third should equal the payment receipt. Investigate differences before submission.
What Changed For Employer Payroll In 2026
The NRA's February 13, 2026 employer briefing highlights two changes that payroll teams should not miss. First, it states that a new minimum wage of Le 1,200 came into effect on April 1, 2026. The minimum wage and the PAYE tax-free threshold are different controls. A lawful wage floor does not automatically become a tax threshold, and the tax-free threshold remaining at Le 600 does not authorize a lower wage.
Second, the NRA says redundancy and end-of-service benefits are exempt from taxation under the Finance Act 2026. Employers should not translate that summary into a blanket exemption for every final payment. Separate salary, accrued benefits, notice pay, leave, redundancy, end-of-service benefits and any other termination amount. Retain the calculation, reason for termination, contract or policy basis, approval, and the Finance Act provision or written NRA guidance supporting the treatment.
The Finance Act 2026 is available from the NRA tax-laws page as primary legislation. It began as the tax measure for the 2026 financial year and should be read alongside the Income Tax Act and prior amendments. If a payroll item is unusual, use the legislation and current NRA guidance together. A news summary is a useful alert, but it should not be stretched beyond the payment type it names.
A Practical Monthly Payroll Workflow
1. Freeze approved inputs. Confirm starters, leavers, salary changes, allowances, overtime, bonuses, benefits, unpaid leave and termination items. Each change needs an effective date and approval. Preserve the previous period instead of overwriting it.
2. Validate worker records. Match the legal name, NRA taxpayer details where applicable, NASSIT number, start date, employment type, residence treatment and bank details to source records. Resolve missing NASSIT registration before the contribution deadline.
3. Build the earnings and contribution bases. Keep basic salary, other cash earnings, benefits and exceptional payments visible. Confirm which amount NASSIT treats as contributory earnings and which amounts form taxable employment income. Do not let a voluntary deduction silently reduce PAYE.
4. Calculate NASSIT and PAYE in order. Calculate the 5% employee contribution, deduct the allowable employee share before PAYE, apply progressive PAYE bands, then calculate the 10% employer contribution separately. Sample low, middle and high salaries against the current NRA portal or calculator.
5. Reconcile payroll. Gross pay minus employee deductions must equal net pay. Total net pay must equal the approved bank file. The PAYE schedule must equal the PAYE control account. Employee and employer NASSIT totals must equal the contribution schedule.
6. File and pay separately. Submit PAYE to the NRA and contributions to NASSIT by their current deadlines and channels. Use the reference generated by each system. A bank debit without a matched return or schedule may not prove that the liability was correctly allocated.
7. Archive the evidence. Keep the approved input report, payroll register, payslips, exception report, NRA return and acknowledgement, PAYE payment receipt, NASSIT schedule and receipt, correction log, and source verification note. Payroll files contain sensitive identity and salary data, so access should be limited.
Controls That Prevent Payroll Errors
Version the tax settings. Record the source URL, date checked, currency unit, band thresholds, NASSIT base, rates and approver. When a source changes, create a new effective-dated configuration instead of editing historical payroll results.
Keep employee deductions apart from employer costs. The employee's 5% NASSIT contribution reduces the employee's pay and is used before PAYE. The employer's 10% contribution is additional employer cost. Combining both as a 15% employee deduction would underpay the worker and misstate payroll liabilities.
Use exception reports. Review zero PAYE above the threshold, negative net pay, duplicate bank accounts, missing NASSIT numbers, large changes from the prior month, manual overrides, second employments, termination payments and contributions that do not reconcile. Exceptions focus attention where a routine payroll is most likely to fail.
Document corrections. A correction note should identify the affected month, original amount, corrected amount, cause, approval, revised return or schedule, and any NRA or NASSIT contact. Do not silently change a closed payroll because that breaks the link among the payslip, bank file, return, receipt and general ledger.
Protect payroll data. Do not put real employee names, salaries, tax identifiers or social security numbers in public links, analytics, screenshots or software tests. Use synthetic fixtures when testing the calculator or payroll system. Keep retention and deletion rules that match legal, audit and employment requirements.
Finally, refresh the source set before the first payroll of a new year and whenever the NRA, NASSIT or Government announces a change. A reliable payroll process is not a one-time table. It is a controlled sequence that can show which rule was used, when it was checked, who approved it, what was filed and what was paid.
Check Sierra Leone PAYE Before Payroll Close
Estimate employee PAYE and NASSIT, then reconcile the result with current NRA and NASSIT guidance.
Open Sierra Leone PAYE Calculator →Official Sources Reviewed
Primary sources were checked on August 13, 2026:
- National Revenue Authority, February 2026 employer briefing on PAYE and Finance Act 2026
- National Revenue Authority tax portal, PAYE calculator and 2026 tax calendar
- National Revenue Authority, tax laws and regulations index
- Sierra Leone Finance Act 2026
- National Revenue Authority tax guide, PAYE filing and payment process
- NASSIT, employer and worker registration responsibilities
- NASSIT, contribution rates, schedules and payment timing
- NASSIT, employer compliance and late-payment enforcement