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  • Thursday, May 23, 2024
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BusinessDay

FG dares Labour with 50% Minimum wage increase

Council of State on Tuesday gave nod to a new national Minimum wage average of N27,000, representing an increase of 50% above the existing N18,000 approved

The existing Minimum Wage of N18,000 was approved in 2011 by the regime of former President Goodluck Jonathan when the wages was increased from N7,500 to N18,000.

The decision of the Council of State has also paved way for President Muhammadu Buhari to transmit the new national Minimum Wage Bill to the National Assembly for consideration and approval

Labour and Employment, Chris Ngige disclosed this while briefing State House Correspondents at the end of the Council of State meeting at the Presidential Villa, Abuja

The tripartite Committee had made recommendations of N30,000 as new Minimum wage to President Buhari.

READ ALSO: FG initiates reconciliation with labour leaders on new minimum wage

“Thus, in consonance with the fact that the issues of national minimum wage prescription is in the exclusive list, second schedule, item 34 and being on that list, it is not a job that can be done by the executive alone. The president has to transmit the bill to the National Assembly and the National Assembly will take legislative action and return the bill that has been so treated to the president for his assent.

“So, a bill will now be transmitted to the National Assembly that will amend the 1981 Act and 2011 Act. The highlight is what you want to know. The figure of N27,000 monthly has been approved for transmission to the National Assembly. The frequency of the review of the bill is five years, to get it in consonance with pension law of the federation as enshrined in the constitution.

Ngige said Council took into consideration, the recommendations of the tripartite committee but reminded the President of federal government’s proposal of N24,000 and the governors proposal of N22,700 before arriving at the decision.

The Minister however explained that organizations employing les than 25 workers are exempted from the current minimum wage.

“Exemptions to this bill will be establishments that are not employing people up to the number of 25. The various times prescribed have also been altered in the bill and will be sent to the National Assembly before the close of work tomorrow (Wednesday)”

When reminded on Labour’s insistence on N30,000 as the Minimum wage, Ngige, noted that the N27,000 approved for onward transmission to the National Assembly was the lowest , adding that organizations and states with resources can pay more

“Labour should understand that this is the Minimum below which no one can go. So, organizations and States with the resources can pay more”

The Minister also revealed that “Federal government has resolved to pay its workers a Minimum wage of N30,000”

Ngige noted further that the decision to peg the Minimum wage at N27,000 came out of consideration of current economic realities, adding that “ we are aware that not every can afford to pay N30,000 as Minimum wage”

Rotimi Akeredolu disclosed that the Council also endorsed the election plans as put forward by the Independent National Electoral Commission, INEC following briefing received by its Chairman, Mahmoud Yakubu

“Council was briefed by the INEC chairman and the briefing as accepted by everybody was lucid and clear. It was all encompassing. The INEC chairman took the council through all the processes that are going to be followed at the national and state elections.”

He disclosed that INEC briefed council on their preparedness for the election adding that everybody in the council was convinced that INEC was ready for this election.

“That convinced all of us that this forthcoming election would be free and fair and then the way we see it. They have improved card readers, the details of what have been done to improve it was made known.

“I think that all of us in the hall have heard that look, whatever it is, we have now listened t the chairman of INEC and we are convinced that they are prepared for the election. I am not sure any other person will come out to talk about INEC any longer. So, the point has been made, all of us now have our hands on deck to ensure the success. Because, without our participation, without our cooperation, INEC itself cannot be successful.

Yakubu had informed the council that all the necessary ballot boxes and everything to be used were ready, including changes made to the ballot boxes.

“He also informed us that rather using collapsible ballot boxes, they are going to use framed ballot boxes, transparent ones because we have lost so many and a lot have been purchased.

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