The Nigerian Senate on Tuesday approved the new minimum wage as agreed by the Federal government and the Labour union.
The Senate amended Section 3 of the National Minimum Wage Act. Section 3 (1) was amended from N30,000 to N70,000. Section 3 (1) amended the period of review from 5 years to 3 years.
Here are some points of note from the National Minimum Wage Act.
- The minimum wage as the name says is the minimum amount an employer of labor is required to pay the lowest worker. For example, in the civil service, N70,000 is for Level 1, Step 1.
- It is not binding on staff working part-time or on commission basis.
- It is not binding on establishments with less than 25 employees.
It would be recalled that the Labour union has been at loggerheads with the Federal government over the issue of the minimum wage earned by workers as it does not reflect the economic situation of the country as the low wage is not enough to cater to the welfare of Nigerian workers.
