FG, Labour sign MoU on new minimum wage

The Federal Government and the Labour Union have signed a Memorandum of Understanding on the ₦70, 000 new minimum wage.

The Federal Government backdated the implementation of the newly agreed minimum wage to July 29, 2024 after a meeting with the committee on adjustments in salaries for civil servants on Friday in Abuja.

The committee headed by the Head of Civil Service of the Federation, Didi Walson-Jack, consists of 16 members, with terms of reference to negotiate and agree on salary adjustments and develop a template for the implementation.

The committee held four meetings and considered all presentations by the Federal Government and Trade Union Sides.

It also considered the economic situation and ability of the Federal Government to pay and sustain any consequential adjustment in salaries arising from the implementation of the National Minimum Wage (Amendment) Act, 2024 as well as the effect on other employers.

Speaking after the signing, Walson-Jack, the Chairman of the Committee, commended members for the efforts put into the task assigned.

The HCSF said, “Both the Trade Union and the Government sides have agreed on the Consequential Adjustments in Salaries arising from the new minimum wage of N70,000.”

She also disclosed that all the members considered the MOU and have all signed copies, concluding the exercise by handing over copies to representatives on both sides.

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The committee recommended that the National Salaries and Incomes and Wages Commission (NSIWC) should generate the appropriate salary templates for other consolidated salary structures for implementation with an implementation date of 29th July 2024.

“The payment of the wage award issued vide NS/WC Circular SWC.04/T/33 dated 19th October 2023 should continue to be paid until 28th July 2024,” the committee said.

Meanwhile, the committee also urged the government to take appropriate action to alleviate the plight of Federal workers, considering the recent hike in fuel prices.

The committee advised the government to consider tax waivers and other incentives. It also tasked the NSIWC to commence monitoring of the implementation in line with the provisions of the Act in collaboration with other stakeholders.