Minimum Wage Bill in Nigeria

Filed in Governance, Government by on January 8, 2021 0 Comments

Minimum Wage Bill in Nigeria will be discussed here. Reading it will avail you with the necessary information about this subject.

On the 19th of March 2019, the National Assembly of Nigeria passed the minimum wage bill which was later presented to the President in the person of President Muhammadu Buhari for him to append his signature.

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Minimum Wage Bill in Nigeria

Minimum Wage Bill in Nigeria – Photo Source: https://www.sensusmedia.co

The passage of the bill made room for workers to be paid a minimum salary of 30 thousand naira in cases where a company has over 50 employees on its payroll.

The bill also gave room to some exceptions. Some of the extractions from the bill are presented below:

The objective of the bill

The objective of the bill is to prescribe the national minimum wage and provide for a legal framework for seamless review of the national minimum wage within the period specified under this bill.

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Application of the bill

The bill is to be applied throughout the federal republic of Nigeria.

Employer to pay minimum wage

As from the commencement of this bill, every employer except as provided for under this bill shall pay a wage not less than 30,000 Naira per month to every worker under his establishment.

The national minimum wage as prescribed in sub-clause (1) of this clause shall be the minimum total amount of money paid worker or employee monthly in his establishment.

Any agreement for the payment of wages less than the national minimum wage as prescribed in Sub-Clause (1) of this clause shall be the minimum total amount of money an employer of labour is required to pay the lowest-paid worker or employee monthly in his establishment.

Any agreement for the payment of wages less than the national minimum wage as prescribed in subclause (1) shall be void and of no effect whatsoever.

The national minimum wage shall be for the duration of five (5) years after which it shall be reviewed in line with the provision of this bill.

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Exemptions

The provision of clause 3 (1) of this bill shall not apply to:

  1. An establishment in which workers are employed on a part-time basis
  2. An establishment at which workers are paid on commission or on piece-rate
  3. An establishment that employs less than 25 workers.
  4. Workers in seasonal employment such as agriculture.
  5. Any person employed in a vessel or aircraft to which the laws regulating merchant shipping or civil aviation apply.

The minister of Labour and Employment shall, through the National Labour Advisory Council and by order published in the Federal Government Gazette grant other exemptions as he deems necessary in the interest of the national economy, taking into consideration reports from national salaries, incomes and wages commission or such other body that may represent for exemption.

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In the bill, there are penalties that accompany the defaulters of the law. Conclusively, the bill is not only implemented but monitored by the Federal Minister of Labour and Employment and the National Salaries, Income and Wage Commission.

This is done to ensure the smooth implementation of the national minimum wage in line with the provisions of the Labour Act and the National Salaries, Incomes and Wages Commission Act.

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