The Nigerian Labour Congress, NLC proposed workers minimum wage to be peg at N52,000($144.44) monthly which was countered and trimmed down to N30,000($83.33) due to the inability of the state government to meet up with this latest development. However, the President of the nation, President Muhammad Buhari, as at 18 April, 2019, has signed into law the new country’s workers minimum wage to be N30,000, so as to lessen the suffering of civil servants and other employees within the commercial sector private and governmental parastatals.
This article covers a lot of information you need to know regarding the new approved national workers minimum wage.
The United States of America has their minimum wage pegged at $7.25 per hour. This goes to say that no set up is allowed to pay anything below the approved and fixed wage, although, they can pay well above the amount depending on the set up.
A little Comparison Between the US Minimum Wage and that of Nigeria
It’s no news that Nigeria has been pulling all attempt to copy or be like this great nation in a lot of ways. Although, this move has not been really fruitful but then, let’s quickly run a Comparison between these two great countries concerning the workers payment plan.
Build up of the US Minimum Wage
Since the US pay their workers a minimum wage of $7.25 per hour, assuming an employee works for 5 hours daily, 25 days a month. He will be earning a total of 7.25x5x25=$906.25(N326,250) on a monthly basis. Meanwhile, this amount may vary depending on the hours of work and the days of work the employee is engaged.
Break Down of Nigerian Minimum Wage.
Assuming the government of Nigeria has fully started the payment of the approved N30,000 as workers minimum wage, an employee will be earning the following amount using the same number of hours and days work. Let’s say an employee works for 5 hours daily, 25 days a month, then his daily wage will be, 30,000/25/5=N240($0.66)per hour. Meanwhile, there is hardly an establishment in Nigeria that you will be allowed to work for such a short time. This goes to say that, an employee in Nigeria will earn less than 50 cent per hour.
Now, you know the difference. If these values should be multiplied by 12 months we will be having N360,000($1,000) and N3,915,000($10,875) for Nigeria and the US respectively. A ratio of 1:10.
Who is Eligible for Minimum Wage?
Based on the law and constitution of the country binding the act of workers minimum wage, there are set of workers who are entitled to be paid this amount and the include.
1. Employees at the federal government level
2. Employees at the state government level
3. Employees at the local government level
4. Some private organization that are included in the act.
5. Resident international organizations included in the act.
Knowing these set of employees who are entitled to be paid the new approved minimum wage in the country, there are however some other workers who are not captured in the nations minimum wage. They include;
1. Set up with few employees less than 25 persons.
2. Employees whose work stretches out of the country.
3. Employees who are employed to work at home.
4. Other menial jobs where the payment is based on negotiation with the employer.
5. Privately owned small and medium businesses.
Brief Calculations of the New Workers Minimum Wage.
Know that there exit a plan of payment before the approval of the new salary. Also, the payment is based on the grade or level at which your qualification has purchased for you. This means that, as an employee you certificate or promotion is a determinant on how much you are to receive if this amount is completely implemented. This grades 07, 08, 10, 14, 15 and what have you is attained by your level of study or year of stay in the organization.
Assuming an employee at level 07 who earns N45,000 as salary on a monthly basis is to be paid the new minimum wage, we will be having his new salary to be as follows;
Old salary N45,000
New increment by percentage 22%
This will give us, old salary + 22% increment(22/100×4500) + 45,000 = 54, 900. Therefore, this employee’s new salary will be N54,900.
Do you think the minimum wage is something that the government should still be deliberating on after being approved by the president?
Assuming the amount (N30,000) is fully implemented by the governors of the 36 states in Nigeria, will this amount solve the problems and needs of the civil servants?
Do you think the increment will lead to inflation?
The approved Nigerian Minimum Wage of N30,000 by the president is still to be effected by the states and other set up. Some governors has failed to heed to this for one reason or the other.
I think this amount is so little not to be paid to workers, considering the economy of the country. Comparing Nigeria minimum salary to other country will, you will realize that the wages paid to workers in the country is nothing to write home about.
Thanks for reading.