In 2019, the Federal Government of Nigeria signed a law approving a new minimum wage in Nigeria. This article features the date the implementation began, the amount of money involved and every other thing you need to know about it.
The minimum wage is the lowest amount approved by the Nigerian government for workers within the country to be paid as a salary per month.
It is illegal for any employer of labour operating within the confines of the country to pay his workers less than that amount every month.
Knowing the exact amount this is, we can be able to arrive at what the minimum salary per year will be, based on that. That way, we will know how much Nigeria workers are to start getting in a year starting from now. Let’s go on!
How Much Is The Minimum Wage In Nigeria?
As agreed between the Nigerian government and the labour unions in the country, the new minimum wage in Nigeria is N30,000. This is the exact amount signed into law by the President of the Federal Republic of Nigeria on the 18th of April, 2019.
The implication of that Law is that a worker has the right to sue any employer who fails to abide by that law in paying him what is due to him.
Prior to the signing of the new minimum wage into law, the minimum wage that was in effect in the country was N18,000.
That was what workers received as salary per month including persons in the National Youth Service Corps (NYSC).
That amount subjected people to untold suffering as the economy experienced an increase in the cost of living from the last administration to the present one.
While N30,000 as salary is still not enough compared to what is obtainable in several other countries in Africa and all the world, it is still a major improvement. A major leap toward progress.
The Reflection On Yearly Earnings
Going by the N30,000 monthly earnings approved by the government in April, it means workers in Nigeria at the entry-level stand to earn about N360,000 a year. About 40% increase from the previous N216,000 workers received at the entry-level in a year as salary in the country.
Again this is still poor but it’s a journey towards progress.
People Eligible to Get the New Wage
That the government approved a minimum wage for workers in the country does not mean that every person who does any kind of job in any place will be getting that as payment.
There are exemptions. There are places the law doesn’t apply.
What that simply means is that there are employers who are excluded from paying their workers up to that amount. Such employers are:
Persons who are employing less than 25 workers. So if you work in a place where there are less than 25 workers, the company or firm is not compulsory for the management to offer you N30,000 which is the minimum wage. In that case, your monthly payment is subject to negotiations with them.
Persons who work in a ship that sails out of the jurisdiction. According to the implications of the law, persons who work on a ship may not be getting the new minimum wage.
This is because the ship constantly sails outside of the jurisdiction of Nigeria where the law applies.
So, their employers are not mandated by the law to offer them that amount. Their pay would then be a result of negotiations and agreements between both parties.
Persons who are in other kinds of regulated employment are accepted by the act. People that are in other kinds of employment like domestic workers in private homes may not be getting the new minimum wage per month.
Unless they are working with the government. In that case, their pay is subject to negotiations and agreements between them and their employers.
So, while workers are very excited about the recent update in the new minimum wage, there are people who may not be getting that pay. That is because their employers are not mandated by the law to offer them such.
However, if your kind of work demands that you should be getting the new minimum wage and you are not, you have every right to sue your employer.
The law also permits the minister of labour or any person he nominates or designates in any agency, department or ministry, to take action on your behalf and in your name, against such employer in order to recover your balance.
How The New Wage Will Affect Salaries Of Workers
According to the information we have from very reliable sources, the Federal Government of Nigeria and the labour unions have reached an agreement on salary adjustments following the signing o the new minimum wage.
Based on that agreement between the FG and organised labour, workers who are on grade level O7 will start receiving a 23.2 per cent increase in their monthly payments from that April.
Workers who are in grade 08 will receive a 20% increase in theirs, while those in grade 09 will receive a 19 per cent increase in theirs.
Following that, workers who are on level 10 to level 14 will be getting a 16 per cent increase while those on level 15 up will get a 14 per cent increase in their monthly earnings.
These adjustments ensure that everyone in the workforce is duly affected by the new minimum wage without being cheated.
Salary Calculations Based On The New Minimum Wage In Nigeria
Would you like to know what your current salary should be following the new update in the minimum wage? Here’s how to calculate it.
First, you will have to identify which level or grade you belong to. After that, you will use the salary percentage specified for that level and calculate it. You can find the entire levels and the percentage allocated to them in the subheading above.
Example 1: Let’s say Mr Charles is a civil servant on grade level 07. His monthly salary is N45,000. Following the increase in the minimum wage, let’s calculate and see what his new salary will be.
His present salary = N45,000
The increase he is to receive = 22%
His new salary = (22% of Present salary) + Present salary.
= (22/100 X 4500) + 45000
= 9000 + 45000
His New salary = N54,900
So, from our calculations, if Mr Charles were to be a Civil servant on level 07 who received N45, 000 as salary per month, based on the new minimum wage in the country, his new salary will then be N54,900. That is how to calculate your salary following the increase in the new minimum wage.
The first thing to bear in mind when calculating is your current level or grade in the civil service.
The next thing after that is the percentage of increase approved by the government for your level.
Once you’ve got those two things clear, you can go on to use them and find out what your new salary will be.
Let me give you one more example of using a person on a different work level. I believe you will understand it better after this example.
Example 2. Let us find the new salary of Mrs Ada in level 10 who received N125,000 as her monthly payment prior to the increase in the minimum wage.
Remember that to get the answer, we will first get the level of increase in percentage allocated to workers in level 10. We will then add that to her present salary to arrive at what the new one should be. See how it is done below.
Her present salary = N125,000
Her present level 10 increase rate= 16%
Her new salary= (16% of N125,000) + N125000
= (16/100 X 125,000) +125000
= 20,000 + 125,000
Her new salary = N145,000
So, based on our calculations, Mrs Ada’s new salary in level 10 following the adjustment in the national minimum wage will be N145,000 per month.
If you are a worker in Nigeria, you can use those two examples to calculate your new salary. Remember that there is a specific increase rate for a particular level.
Do not use the percentage increase that applies to level 07 and calculate your salary if you are at a different level.
You must calculate it using the exact increase rate that applies to your level to avoid arriving at the wrong answer. Thereby increasing or decreasing your salary more than what is actually supposed to be.
This information will help you know if you are getting what is due to you at your place of work or if you are being cheated.
If you discover you are being cheated, you can follow the appropriate means to recover your money.
The minimum wage in Nigeria is N30,000. It was signed into law on April 18th, 2019. It also takes effect from that day.
That amount is the least amount of money you are supposed to receive as salary per month if you are working in Nigeria.