Senate President Godswill Akpabio announced that the newly approved minimum wage of N70,000 applies to all workers, including those in both public and private sectors, as well as domestic staff such as maids and other household workers.
During a plenary session on Tuesday, Akpabio emphasized the universal applicability of the new minimum wage. The bill was quickly passed by both chambers of the National Assembly shortly after being sent by President Bola Tinubu.
Akpabio clarified, "If you are a tailor and you employ extra hands, you cannot pay them less than N70,000. If you are a mother with a newborn and you want to hire a housemaid, you cannot pay them below the approved minimum wage. This applies to everyone. It's not a maximum wage but a minimum that must be adhered to."
He continued, "If you hire a driver or gateman, you cannot pay them below N70,000. I am pleased that this bill has passed, and we now expect employers to follow this benchmark. I congratulate the Nigeria Labour Congress, all Nigerians, and the National Assembly for this significant legislation, which has even reduced the negotiation term from five years to three years due to the rising cost of living. This is a landmark achievement, so congratulations to all involved."
Following this, the Senate President adjourned the session until September 17.
The PUNCH reports that the Senate passed the 2024 National Minimum Wage Amendment Act Bill after President Bola Tinubu sent the new wage bill to both chambers of the National Assembly, seeking quick approval from the lawmakers.
The new bill replaces the National Minimum Wage Act, No. 8, 2019, which had set a N30,000 minimum wage with a five-year review period. The new legislation reduces the wage review period to three years.
While leading the debate on the bill, the Majority Leader of the Senate, Opeyemi Bamidele, noted that N70,000 was agreed upon by all parties after thorough negotiations. "This is part of the Federal Government’s short-term measure to address the current economic situation in the country," Bamidele said.
Implications of the New Minimum Wage
The approval of the N70,000 minimum wage marks a significant step towards improving the livelihoods of workers across Nigeria. Here are some of the key implications of this new legislation:
1. Inclusive Application
The new minimum wage covers all sectors, ensuring that both public and private sector employees, as well as domestic workers, receive fair compensation. This inclusivity aims to bridge the wage gap and promote equity among various job categories.
2. Enhanced Worker Welfare
By setting a higher minimum wage, the legislation seeks to improve the standard of living for workers. This move is particularly significant in light of the rising cost of living, providing workers with better financial security and reducing economic hardship.
3. Shorter Wage Review Period
The reduction of the wage review period from five years to three years ensures that wages can be adjusted more frequently to keep pace with inflation and other economic changes. This proactive approach helps maintain the relevance and adequacy of wages over time.
4. Encouragement of Fair Employment Practices
Employers are now mandated to pay their employees a minimum of N70,000, which discourages exploitative labor practices. This can lead to a more motivated workforce, as employees feel valued and fairly compensated for their work.
5. Support for Domestic Workers
Including domestic workers in the minimum wage law acknowledges their contributions and ensures they receive fair pay. This can improve their living standards and reduce the exploitation often faced by this group.
Challenges and Considerations
While the new minimum wage is a positive development, its implementation may face challenges:
1. Compliance and Enforcement
Ensuring that all employers comply with the new wage law will require effective monitoring and enforcement mechanisms. The government will need to work closely with labor unions and other stakeholders to address non-compliance issues.
2. Impact on Small Businesses
Small businesses may struggle to meet the new wage requirements, potentially leading to layoffs or reduced hiring. Support measures, such as financial assistance or tax incentives, may be necessary to help these businesses adapt.
3. Inflationary Pressures
Raising the minimum wage could contribute to inflationary pressures if businesses pass on the increased labor costs to consumers. Balancing wage increases with measures to control inflation will be crucial.
Conclusion
The approval of the N70,000 minimum wage is a significant milestone in Nigeria's efforts to improve worker welfare and promote fair labor practices. By ensuring that all workers, including domestic staff, receive fair compensation, the legislation aims to reduce economic inequality and enhance the standard of living for many Nigerians. However, successful implementation will require diligent enforcement and support for businesses to navigate the transition.
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