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FG Clarifies Backpay for Minimum Wage Starting July 29

The Federal Government, through the National Salaries, Incomes, and Wages Commission (NSIWC), has announced that the implementation of the new minimum wage will commence from July 2024. This was disclosed by the Chairman of NSIWC, Ekpo Nta, during a press briefing on Tuesday in Abuja.

According to Nta, the July date aligns with when President Bola Tinubu signed the bill into law following its passage by the National Assembly. This contradicts an earlier statement by Minister of State for Labour, Nkiruka Onyejeocha, who had indicated that the payment would begin on May 1, 2024.

The government’s position means that, if payments begin in October, arrears will only cover two months—July and August. Additionally, the government has approved revisions to the Consolidated Public Service Salary Structure and other related pay structures.

Last week, a committee focused on consequential salary adjustments for civil servants recommended that the new minimum wage be implemented starting July 29, 2024. The committee also proposed that the wage award, which had previously been discontinued, should be paid up until July 28, 2024.

The committee, chaired by the Head of Civil Service of the Federation, Didi Walson-Jack, noted that the government considered the nation’s economic situation before arriving at this decision.

However, labor representatives have expressed dissatisfaction. Benson Upah, Head of Information at the Nigerian Labour Congress (NLC), called the backdated July start date “unfair and unacceptable.” Similarly, Timmy Etim, National Vice President of the Trade Union Congress (TUC), criticized the government’s change of position, particularly after the Minister of State for Labour had promised that the wage increase would take effect from May 1, 2024.

In response to these criticisms, Nta clarified that the July 29 date reflects the formal approval of the law by the president. He urged any public service agency that has not received communication on this to contact the NSIWC for guidance to avoid uncoordinated implementation.

The chairman also outlined how the revised minimum wage would affect pensioners, National Youth Service Corps (NYSC) members, and interns. He provided details of other updated salary structures, including those for research institutions, universities, polytechnics, and the health sector.

Nta concluded by referencing the NSIWC Amendment Act 2024 and the Memorandum of Understanding signed between the Federal Government and the Trade Union sides of the Joint National Public Service Negotiating Council on September 20, 2024.

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