The Nigerian Senate has passed a new minimum wage bill, which raises the minimum wage for domestic workers to N70,000.
This bill, an amendment to the National Minimum Wage Act of 2019, also reduces the period for wage reviews from five years to three years. The bill is expected to be signed by President Bola Tinubu soon.
Key Changes in the Bill
The new legislation mandates both government and private employers to pay their domestic workers a minimum wage of N70,000. This includes gatemen, housemaids, and drivers. The wage review period will now be every three years, ensuring that Nigerian workers’ wages are reassessed more frequently to keep up with inflation and the rising cost of living.
Clarification on Employer Obligations
Senate President Godswill Akpabio initially stated that the minimum wage applies to all domestic workers without exception. He emphasized that employers must pay the new minimum wage regardless of the employment conditions.
“The bill says that if you are a tailor and you employ an additional hand, you cannot pay the person below N70,000. If you are a mother and you have a newborn child and you want to bring in a housemaid to look after your child, you cannot pay that housemaid below N70,000,” Akpabio said. “It is not a maximum wage. It applies to all and sundry. If you bring in a driver, if you bring in a gateman — you cannot pay that gateman below N70,000.”
He congratulated the Nigeria Labour Congress (NLC), the Senate, and the National Assembly for this significant legislative achievement. He noted that the reduced negotiation period from five to three years is necessary due to the rising cost of living.
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Exemptions to the Minimum Wage Requirement
Contrary to Akpabio’s statement, the National Minimum Wage Act of 2019 includes certain exemptions. According to Section 3 (1) of the Act, the following employers are not required to pay the N70,000 minimum wage:
– Establishments where workers are employed or paid on a part-time basis, commission, or piece rate.
– Establishments with fewer than 25 employees.
– Workers in seasonal employment, such as agriculture.
– Employees on vessels or aircraft subject to laws regulating merchant shipping or civil aviation.
These exemptions mean that not all domestic workers will benefit from the new minimum wage law, despite the initial claims.
Conclusion
The new minimum wage bill marks a significant step forward for Nigerian workers, ensuring more frequent wage reviews and higher minimum pay. However, it is important for employers to understand the exemptions outlined in the law. As the bill awaits the President’s signature, its implementation will bring much-needed changes to the labor market, impacting both employers and employees across the country.