FG Clarifies New Minimum Wage Backpay to Start from July 29

The Federal Government has announced that the payment of the newly approved minimum wage will officially begin from July 29, 2024. This decision was made clear by the National Salaries, Incomes, and Wages Commission (NSIWC) during a press briefing held in Abuja on Tuesday.

Ekpo Nta, the Chairman of NSIWC, explained that the start date was set because it coincided with the day the President signed the bill into law, following its passage by the National Assembly. He clarified, “The President has approved the revision of the Consolidated Public Service Salary Structure with effect from July 29, 2024. That was the day Mr. President assented to the act after the bill was forwarded to him by the National Assembly.”

This announcement contradicts an earlier statement by the Minister of State for Labour, Nkiruka Onyejeocha, who had previously said that the new minimum wage payments would commence on May 1, 2024. Nta’s statement now means that arrears will only cover two months if payments begin by the end of October 2024.

In addition, the NSIWC disclosed that the government had also approved the revision of various salary structures, including the Consolidated Public Service Salary Structure, which impacts civil servants across multiple sectors.

Last Friday, a government committee focused on consequential salary adjustments for civil servants agreed that the new minimum wage would be implemented starting July 29, 2024. The committee, chaired by Didi Walson-Jack, the Head of Civil Service of the Federation, also recommended that wage awards discontinued by the government should be paid up until July 28, 2024.

Despite the government’s explanation, reactions from labor unions have been critical. Benson Upah, Head of Information at the Nigerian Labour Congress (NLC), expressed disappointment, stating, “The backdating to July is not fair. It is not acceptable.” Similarly, Timmy Etim, National Vice President of the Trade Union Congress (TUC), criticized the government’s decision to renege on its earlier promise. “Since the Minister of State for Labour told workers on May Day that the new minimum wage would take effect in May, it is unfair for the government to backtrack on this promise,” Etim said.

However, Nta defended the government’s decision, emphasizing the importance of following the law. He said that any federal public service body, whether self-funded or treasury-funded, that had not yet received the official circular should contact the NSIWC for guidance. “This is to avoid uncoordinated implementation, which could disrupt salary structures across the federal public service,” Nta added.

He also mentioned that further directives would be issued regarding how pensioners, National Youth Service Corps (NYSC) members, and interns would benefit from the new minimum wage.

The revised salary templates include several key sectors such as the Consolidated Research and Allied Institutions Salary Structure, Consolidated Universities Academic Salary Structure, and the Consolidated Medical Salary Structure. Other templates that will be affected include the Consolidated Health Salary Structure, Consolidated Para-Military Salary Structure, and the Consolidated Armed Forces Salary Structure.

Nta concluded by highlighting the importance of these adjustments, stating that they were a result of the NSIWC Amendment Act 2024 and the agreement reached between the Federal Government and the Trade Union sides of the Joint National Public Service Negotiating Council.