It is now clear for all levels of government to start paying the new minimum wage. This is a follow-up to the Federal Government-established committee’s final report on the consequential compensation adjustment.
Most governors have not paid the new wage because of the delay in completing the adjustment.
A significant step towards the full implementation of the National Minimum Wage (Amendment) Act, 2024 is the finalisation of the provisions of the new compensation structure by the Committee on Consequential Adjustment in Salaries Arising from the National Minimum Wage Act, 2024, which met yesterday in Abuja.
For federal ministries, extra-ministerial offices, and agencies, the Consolidated Public Service Salary Structure (CONPSS) stipulates the following percentage increases in salary adjustments across various grade levels: 80.81% to 64.73% rise in CONPSS 01-06; 45.59% to 19.35% increase in CONPSS 07-14; and 14.35% to 4.41% increase in CONPSS 15-17.
These changes represent a significant departure from the previous pay scale and are intended to ease the financial burdens on federal employees—particularly in light of the continued economic pressures brought on by the increase in the price of Premium Motor Spirit (PMS).
The Committee recommended that the National Salaries, Income, and Wages Commission (NSIWC) create salary templates for additional consolidated wage structures including the federal workforce, in addition to the modifications made under CONPSS.
Through this decision, it is ensured that federal workers would continue to receive financial support prior to the new changes taking effect during the transitional period.
Tax waivers and other financial incentives are among the recommended policies, which would offer much-needed comfort to workers who are experiencing rising living expenses. The Committee also stressed how important it is that the National Minimum Wage (Amendment) Act, 2024, which sets the lowest paid worker’s monthly salary at N70,000, be followed in terms of salary adjustments.
To this end, the NSIWC must work with other important stakeholders to monitor the implementation of these changes.
The Committee was made up of sixteen members, eight of whom represented the federal government and eight of whom represented the trade union side. It was chaired by Mrs. Didi Esther Walson-Jack, Head of the Civil Service of the Federation (HCSF). The Committee heard submissions from officials of the Federal Government and Trade Unions over four extensive meetings.
The Committee considered the state of the economy and the Federal Government’s ability to continue funding the wage adjustments throughout its discussions. The possible effects of these changes on other employers and economic sectors were also taken into account. The final deal demonstrates a well-rounded strategy meant to address worker welfare while guaranteeing the government’s ability to pay its debts.
