Federal Government Announces New Minimum Wage Starting April 1, 2024
In a significant development, the Federal Government has revealed that a new minimum wage regime will be implemented starting April 1, 2024. The current minimum wage of N30,000 is set to expire at the end of March 2024, according to the Minister of Information and National Orientation, Idris Mohammed.
The announcement came during a recent interview with The PUNCH in Abuja, where Minister Mohammed shared insights into the government’s plans for wage adjustments. The new wage is part of ongoing efforts to address economic challenges and enhance the well-being of workers.
Read Also Governor Godwin Obaseki wishes Rema speedy recovery
As part of the comprehensive budget analysis for 2024 – 2026 Fiscal Framework, it was disclosed that the Federal Government is allocating a substantial budget of N24.66tn for salaries in the upcoming three years. This includes 2024, 2025, and 2026, reflecting the government’s commitment to prioritizing personnel costs.
The wage adjustment follows the removal of the fuel subsidy earlier in the year, prompting the government to provide a temporary palliative measure by agreeing to pay N35,000 to its workers. However, organized Labour has consistently emphasized that the N35,000 award was a short-term solution, advocating for a thorough review of the minimum wage in 2024.
Labour unions, in line with the country’s labour law, have initiated negotiations with the Federal Government. According to Joe Ajaero, the National President of the Nigeria Labour Congress (NLC), “It is open knowledge that the review of the national minimum wage is a matter of the law, which is expected to happen in 2024.
Minister Mohammed assured that the wage issue is being addressed through a committee, which will involve representatives from Labour. The collaborative effort aims to establish a new wage structure that ensures fair compensation for workers across Nigeria.
The budget analysis reveals that personnel costs, including salaries, overheads, and pensions, will constitute 29.18 per cent of the total budgets for 2024, 2025, and 2026. The allocated amount of N24.66tn reflects the government’s commitment to sustaining the workforce amid economic challenges.
As the negotiation process unfolds, there is anticipation that the private sector and state governments will align with the Federal Government’s approach to ensure a uniform and fair compensation structure for workers nationwide.
The Minister of Budget and National Economic Planning, Abubakar Bagudu, acknowledged the financial constraints faced by the government, emphasizing the need for strategic measures to address the economic situation.
With the proposed salary review, the Federal Government aims to strike a balance between meeting its obligations to workers and managing fiscal deficits. The anticipated deficit for 2024 is projected to be N9.18tn, reflecting the government’s commitment to addressing key areas such as salary adjustments, increased pension obligations, and higher debt service costs.
While the budgetary focus on security and capital expenditure is evident, concerns have been raised about the over-bloated personnel costs. In response, the House of Representatives condemned the excesses in the 2024 budget and urged the Independent Corrupt Practices and Other Related Offences Commission to investigate.
As the nation awaits the implementation of the new minimum wage in April 2024, discussions in both legislative chambers highlight the importance of diligent scrutiny and oversight to ensure the effective utilization of budgetary allocations.
That is the least news on “Federal Government Announces New Minimum Wage Starting April 1, 2024.” For more news, visit Ejes Gist News at https://ejesgist.ng.
