Five months after the labour and employment Minister, Nkeiruka Onyejeocha told workers that implementation of the new minimum wage will take effect from May one 2024, The Committee on Consequential Adjustments in Salaries for civil servants has agreed that the new minimum wage will now be implemented from July 29, 2024.
This was stated in a Memorandum of Understanding, MoU, issued at the end of the committee’s meeting in Abuja on Friday.
The committee also recommended that the wage award, which was discontinued by the federal government, should be paid until July 28 2024.
The consequential adjustment committee, headed by the Head of Civil Service of the Federation, Didi Walson-Jack, noted that the government considered the economic situation in the country before making its decisions.
The committee was established to implement the provisions of the National Minimum Wage Act 2024, which raised the national minimum wage from ₦30,000 to ₦70,000.
MoU Details and Reactions
The MoU recommended that the NSIWC will generate the appropriate salary templates for other consolidated salary structures for implementation as well as the payment of the wage award issued via a circular dated 19 October 2023 should continue to be paid until 27 July 2024.
However, this decision has sparked outrage among labor unions, with many expressing their disappointment and frustration. The National Vice President of the Trade Union Congress, Timmy Etim, criticized the government's move, stating that the Minister of State for Labour, Nkiruka Onyejeocha, had promised workers on May Day that the new minimum wage would take effect in May.
Etim argued that the government's backdating of the implementation to July is unfair, especially considering the socioeconomic challenges faced by workers. He urged the government to stick to its initial promise and implement the new minimum wage from May, arguing that it should have been effective from the date the Act was signed into law.
The Government's Explanation
The committee, which includes representatives from both the Federal Government and Trade Union sides, held four meetings and reviewed presentations from both sides. It considered the economic situation and the government’s capacity to fund and sustain the salary adjustments.
The final agreement, reflecting a balanced approach, aimed at addressing workers’ welfare while ensuring the government can meet its financial obligations.
Key Points of Agreement
The Committee on Consequential Adjustment in Salaries Arising from the National Minimum Wage Act, 2024, has finalised the terms of the new salary structure, a crucial step toward the full implementation of the National Minimum Wage (Amendment) Act, 2024.
- CONPSS 01-06: 80.81% to 64.73% increase;
- CONPSS 07-14: 45.59% to 19.35% increase
- CONPSS 15-17: 14.35% to 4.41% increase.
These adjustments mark a critical shift in the salary structure, designed to alleviate the financial challenges faced by federal employees, especially amid the ongoing economic strains following the rise in Premium Motor Spirit (PMS) prices.
In addition to the adjustments under CONPSS, the Committee has tasked the National Salaries, Income, and Wages Commission (NSIWC) with developing salary templates for other consolidated salary structures across the federal workforce.
The committee also acknowledged the impact of the recent hike in PMS prices on federal workers and called on the Federal Government to introduce measures aimed at alleviating the resulting financial burden. Among the suggested measures are tax waivers and other financial incentives, which would provide much-needed relief to employees facing increased living costs.
Concerns and Moving Forward
Despite the government's efforts to address the concerns of workers, the backdating of the implementation to July 2024 has raised concerns about the government's commitment to its promises. Labor unions have criticized the government's decision, calling for a more transparent and consultative process when making decisions that affect workers' welfare.
The government will need to address these concerns and demonstrate its commitment to ensuring fair compensation for workers, especially as the cost of living continues to rise. The implementation of the new minimum wage is a critical step towards achieving this goal, and it is essential for the government to work collaboratively with labor unions to ensure its success.
A New Era for Workers?
The new minimum wage represents a significant step towards improving the lives of workers in Nigeria. However, the recent backdating of the implementation has raised doubts about the government's commitment to its promises. The government's future actions will be closely watched by workers, who are hoping for a more transparent and equitable approach to wage adjustments in the future. The government will need to work closely with labor unions to ensure that the implementation of the new minimum wage benefits all workers and contributes to a more prosperous future for all Nigerians.
