Minimum Wage in Nigeria 2022 Current Minimum Wage Update in Nigeria

Filed in Salary Structure by TMLT Editorials on April 8, 2022

– Minimum Wage in Nigeria –

Minimum Wage Update: Minimum wage is the amount of remuneration that a collective agreement or an individual contract can not reduce.

An Overview of The Minimum Wage

The minimum wage has been an issue in Nigeria, this article will give you an update on the current Nigerian minimum wage.

The minimum wage comprises the basic wage and several allowances, e.g. Also, for shift work and irregular working hours.

Some income components, such as overtime pay, are not included in the calculation of the minimum wage. However, your payslip will state the statutory minimum wage payable to you.

But paying wages is tricky. On one side, you have an employer who seeks to pay the minimum amount to get a job done. And an employee who strives for higher wages.

This is an acute problem for low-paying jobs, where there is a risk that salaries are not enough to meet basic needs. For workers to live comfortably, they must reach the right balance.

This is what the government looks to address when they implement a minimum wage. As far back as one can remember the issue of the national minimum wage has been problematic both in comprehension and implementation.

From the 1981 N125 Minimum Wage Act enacted by the Shehu Shagari government to the present N30, 000 minimum wage law passed by the National Assembly in 2019, there has been no shortage of disputes and industrial unrest.

What is Minimum Wage?

Minimum wage basically means the lowest salary permitted by law or agreed upon, following negotiations between the labour union and government.

The minimum wage encompasses workers in the private and public sectors because private sector players are members of labour unions or the nation’s labour force.

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Components of the Minimum Wage

The statutory minimum wage is based on the gross wage payable for a normal working week, i.e. before overtime payments. Gross wage can comprise:

1. the basic wage agreed in your contract;

2. performance-related payments and allowances for shift work, irregular hours, etc.;

3. weekly or monthly fixed payments for the turnover you generate;

4. work-related payments by third parties, e.g. tips or payments agreed upon between you and your employer;

5. the total of these amounts may not be lower than the minimum wage.

The Purpose of Minimum Wage

The purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just and fair share.

However, a fair share of the fruits of progress to all, and a minimum living wage for all who are employed and in need of such protection.

Minimum wages can also be one element of a policy to overcome poverty and reduce inequality, including those between men and women, by promoting the right to equal remuneration for work of equal value.

Minimum Wage in Nigeria 2022

President Muhammadu Buhari signed the N30,000 new National Minimum Wage Act into law. Therefore, it was to take on effective April 18, 2019, thus repealing the Minimum Wage Act of 2011.

Meanwhile, the Federal Government started implementing the new wage after negotiating and agreeing.

However, the consequential change in organised labour in October, labor had issued a December 31, 2019 deadline.

Also, states to end all discussions and agreements for implementation or face nationwide industrial unrest.

FAQ on the Minimum Wage in Nigeria

Below are FAQs about Minimum Wage in Nigeria. Please, kindly examine the answers.

1. How does minimum wage work in Nigeria?

However, the minimum wage in Nigeria is based on monthly income, with an average working period of 8 hours daily and 5 days weekly.

2. Who pays minimum wage in Nigeria?

Minimum wage in Nigeria

The bill makes it compulsory for all employers of labour in Nigeria to pay their workers the sum of N30,000.

Meanwhile, some state governors opposed the N30,000 minimum wage. With many of them saying they cannot pay their workers. While other private entities are yet to implement the law.

3. How are wages determined in Nigeria?

Generally, the wage rate is determined by the applicable collective agreement or the agreement between the worker and the employer.

Therefore, there is no preset criterion to determine the minimum wage.

4. What is the concept of minimum wage?

Minimum wages have been defined as the minimum amount of remuneration that an employer is required.

Also, to pay wage earners for the work performed during a period, which cannot be reduced by collective agreement or an individual contract.

Still on the FAQ Minimum Wage in Nigeria

5. What are the different methods of wage payment?

There are two basic systems of wage payment—the time rate system and the piece-rate system. Both the systems have their merits and demerits.

We can consider no system suitable for all times and under all circumstances.

6. What is the importance of minimum wage?

The purpose of minimum wages is to protect workers against unduly low pay. Therefore, they help ensure a just and fair share of the fruits of progress.

Also, to all, and a minimum living wage for all who are employed and in need of such protection.

7. What are the two types of wages?

There are two main kinds of wages- (1) Nominal wages and (2) Real wages. Also, the term ‘nominal wages’ refers to money wages.

But the term ‘real wages’ refers to the commodities and services that the money wages can provide.

However, the standard of living of workers relies on real wages and not on money wages.

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CSN Team.

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