Minimum Wage: FG, Trade Unions Agree on Consequential Salary Adjustments
The Committee on Consequential Adjustment in Salaries Arising from the National Minimum Wage Act, 2024, has reached an agreement on the consequential salary adjustments for public sector employees.
The Committee, formed a week ago, has finalised the terms of the new salary structure, a crucial step toward the full implementation of the National Minimum Wage (Amendment) Act, 2024.
The agreement specifies the following percentage increases in salary adjustments across different grade levels under the Consolidated Public Service Salary Structure (CONPSS), which applies to federal ministries, extra-ministerial offices, and agencies: CONPSS 01-06: 80.81% to 64.73% increase; CONPSS 07-14: 45.59% to 19.35% increase and CONPSS 15-17: 14.35% to 4.41% increase.
These adjustments mark a critical shift in the salary structure, designed to alleviate the financial challenges faced by federal employees, especially amid the ongoing economic strains following the rise in Premium Motor Spirit (PMS) prices.
In addition to the adjustments under CONPSS, the Committee has tasked the National Salaries, Income, and Wages Commission (NSIWC) with developing salary templates for other consolidated salary structures across the federal workforce.
This decision aims to ensure a consistent and equitable salary review for all public service employees affected by the new minimum wage law.
The Committee agreed that the effective date for the implementation of the new salary adjustments is July 29, 2024.
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Moreover, it was resolved that the wage award granted under NSIWC Circular SWC.94T33, issued on October 19, 2023, should continue to be paid until July 28, 2024.
This decision ensures that federal workers receive continued financial support during the transitional period before the new adjustments come into effect.
Recognizing the impact of the recent hike in PMS prices on federal workers, the Committee called on the Federal Government to introduce measures aimed at alleviating the resulting financial burden.
Among the suggested measures are tax waivers and other financial incentives, which would provide much-needed relief to employees facing increased living costs.
The Committee also emphasized the need for the NSIWC, in collaboration with other key stakeholders, to commence monitoring of the implementation of the salary adjustments in line with the provisions of the National Minimum Wage (Amendment) Act, 2024.
The Committee, chaired by Mrs. Didi Esther Walson-Jack, Head of the Civil Service of the Federation (HCSF), comprises 16 members—eight representing the Federal Government and eight from the Trade Union side.
The Committee held four comprehensive meetings where they reviewed presentations from both the Federal Government and Trade Union representatives.
During its deliberations, the Committee examined the economic situation and the federal government’s capacity to fund and sustain the salary adjustments.
Consideration was also given to the potential impact of these adjustments on other employers and sectors of the economy.
The final agreement reflects a balanced approach aimed at addressing workers’ welfare while ensuring the government can meet its financial obligations.
