FG backdates minimum wage payment to July 29

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The committee on consequential adjustments in salaries for civil servants has reached an agreement to implement the new minimum wage from July 29, 2024.

The committee, headed by the head of civil service of the federation, Didi Walson-Jack, disclosed this in a memo.

The committee also recommended that the wage award, which was discontinued by the federal government, should be paid until 28 July 2024.

The memo reads: “The committee held four meetings and considered all presentations from the federal government and trade union sides. It also took into account the economic situation and the ability of the federal government to pay and sustain any consequential adjustment in salaries arising from the implementation of the National Minimum Wage (Amendment) Act, 2024, as well as the effects on other employers.

“The National Salaries, Incomes And Wages Commission (NSIWC) will generate the appropriate salary templates for other consolidated salary structures for implementation; that the effective date of the implementation should be 29 July 2024; that the payment of the wage award issued via NS/WC Circular SWC.04/T/33 dated 19 October 2023 should continue to be paid until 27 July 2024;

“The federal government should take appropriate measures to alleviate the plight of Federal workers as a result of the recent increase in PMS, including consideration of tax waivers and other incentives; and

“The NSIWC, in collaboration with other stakeholders, should commence monitoring of the implementation in line with the provisions of the Act.”

Recall that the 16-member committee was constituted to implement the provisions of the National Minimum Wage Act 2024, which raised the national minimum wage from ₦30,000 to ₦70,000.

Its terms of reference included negotiating and agreeing on consequential adjustments in salaries and developing a template for the implementation of the approved minimum wage.

Meanwhile, the Nigeria Labour Congress (NLC) faulted the government’s decision on the matter.

“The backdating to July is not fair. It is not acceptable,” the NLC spokesman, Mr Benson Upah said.

For its part, the Trade Union Congress (TUC) described as “unfair” since the minister of state for labour, Ms Nkeiruka Onyejeocha, had told workers on May Day that the new minimum wage would take effect in May.

“The minister of state for labour, during the May Day, said that the payment of the new national minimum wage would take effect from May 1st. I am surprised if they have changed and I don’t know the parameter they used for the change. But it will be unfair for the government to do that taking cognizance of the socio economic challenges.

“I think the government should walk the talk. If they say that the effective day is May, I believe that should have been effected. Even when they had deviated from May, it should have been from the date of which the Act was signed into law. But be that as it may, even the N35, 000 should be applied till the effective date. If that is considered, I think it is reasonable,” the national vice president of TUC, Mr Timmy Etim said.