• Friday, March 29, 2024
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Bismarck Rewane heads FG technical Committee on Minimum Wage

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Ahead of the January 23rd submission of the Minimums Wage BIll to the National Assembly, President Muhammadu Buhari on Wednesday inaugurated a technical committee to advise government and amongst things identify revenue sources.

The technical Committee is headed by renown Economist Financial Expert, Bismarck Rewane, is saddled with the responsibilities of developing a strategy and advise government on how to successfully bring about smooth implementation of impending wage increases

The committee will also amongst other things Identify new revenue sources, as well as areas of existing expenditure from where some savings could be made in order to fund the wage increases without adversely impacting the nation’s development goals as set out in the Economic Recovery and Growth Plan;

It is also expected to Propose a work plan and modalities for the implementation of the salary increases, according to the terms of reference handed down to the committee by President Muhammadu Buhari.

With the inauguration of the committee, it is however not immediately clear if the government will still sticks to submission of the Bill to the National Assembly as promised Labour on Tuesday, as the committee as been given one month within which to submit its report

President Muhammmadu Buhari had while inaugurating the committee on Wednesday declared that “ Given the urgency of this exercise, the Committee is expected to complete its deliberations and submit its report and recommendations within one month today”

But the President he is inaugurating the Technical Committee to advise Government on how best to fund, in a sustained manner, the additional costs that will arise from the implementation of the consequential increases in salaries and allowances for workers currently earning above the new minimum wage.

The National Minimum wage Committee had on the 6th of November, last year, submitted its report to President Muhammadu Buhari where it recommended N30,000 as new Minimum wage amongst others.

The President while speaking on Wednesday said “ We are currently working on the final steps that will lead to the submission of a National Minimum Wage Amendment Bill to the National Assembly”

The President also made it clear that there is no question about whether the National Minimum Wage will be reviewed upwards, adding that “I am committed to a review of the Minimum Wage”

“Also, it is important to explain that even though the subject of a National Minimum Wage is in the Exclusive Legislative List, we have been meeting with the State Governors because it is imperative that the Federal Government carries the State Governments along in determining any upward review of the minimum wage for workers.”

He has however blamed the delays on “prevailing public sector revenue challenges”, which, according to him, “have made it extremely difficult for some of the governments to pay workers as and when due”

“As you know we, at the Federal level, have made adequate provision for the increase in the Minimum Wage in our 2019 Budget proposals which we submitted to the National Assembly. Therefore, we will be able to meet the additional costs that will be incurred in moving up all personnel who are currently earning below the new minimum wage.”

“However, we anticipate that after the new minimum wage has been passed into law, we will be going into negotiations for salary review for all the workers who are already earning above the new minimum wage. It is therefore important that we are properly prepared to meet these demands”

“We must therefore look at ways of implementing these consequential wage adjustments in a manner that does not have adverse effects on our national development plans, as laid out in the Economic Recovery and Growth Plan (ERGP). The ERGP sets appropriate targets for levels of Capital Expenditure, Public Debt, Inflation, Employment, etc. It is absolutely important that the implementation of a new minimum wage does not adversely affect these targets, and thereby erode the envisaged gains for the workers.”