The Federal Government has issued a stern warning to private sector employers, stating that paying workers below the newly established minimum wage of N70,000 will be met with legal consequences.
According to reports on Thursday, September 19, 2024, the government emphasized that the new wage standard is mandatory, reflecting the prevailing economic realities in Nigeria.
This announcement was made by the Permanent Secretary of the Ministry of Labour and Employment, Kachollom Daju, during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN), held in Ikeja, Lagos, on Wednesday.
Daju, who was represented by the Director of Employment and Wages, John Nyamali, stressed the legal implications of failing to comply with the new minimum wage law.
“The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than N70,000 to any of its workers”, Nyamali stated.
He further urged private employment agencies to incorporate the new minimum wage in all their contracts with principals, ensuring that no worker receives less than the prescribed amount.
Nyamali also insisted that the least paid worker in Nigeria should earn N70,000, that is, after all necessary company deductions.
Recall that few days ago, the Minister of State for Labour and Employment, Nkeruka Onyejeocha, assured that the template for the new national minimum wage will be released once it was finalized.
Nkeruka explained that a tripartite committee, consisting of representatives from organized labour, the private sector, and the government, were scheduled to meet with the Head of the Civil Service of the Federation to finalize the adjustments related to the new wage.
She also made that announcement on Friday during a town hall meeting organized by the Federal Ministry of Labour and Employment in Abuja.
Dr. Olufemi Ogunlowo, President of EAPEAN, highlighted the association's commitment to the new wage policy but sought clarification from the government and the Nigeria Labour Congress (NLC) on whether the N70,000 minimum wage is calculated on a net or gross basis.
“Our principals and clients have also keyed into the minimum wage. However, the government must clarify whether the N70,000 minimum wage is net or gross”.
Funmilayo Sessi, Chairperson of the Lagos State chapter of the NLC, also spoke at the event, emphasizing the importance of private employers adhering to the N70,000 wage, especially given the rising cost of living in Nigeria at the time been.
She called on the EAPEAN to ensure compliance, warning that the NLC in Lagos State would closely monitor the implementation of the wage policy.
“The N70,000 isn’t enough in the current economic realities... All private employment agencies should immediately start paying their workers the N70,000 new minimum wage.
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