Private Employers Paying Below N70,000 Minimum Wage Risk Jail – FG

The Federal Government has issued a firm directive to agencies recruiting for the private sector, mandating strict adherence to the newly established N70,000 minimum wage. Any deviation from this wage standard, according to the government, will not be tolerated and could lead to legal consequences. The move is intended to align with the current economic reality and ensure that no Nigerian worker, whether employed in the public or private sector, earns less than the stipulated minimum wage.

This message was conveyed by the Permanent Secretary of the Ministry of Labour and Employment, Kachollom Daju, during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN), held in Ikeja, Lagos. Represented by John Nyamali, the Director of Employment and Wages at the ministry, Daju emphasized the legal implications of failing to comply with the minimum wage law. He said, “The minimum wage is now a law, and it is a punishable crime for any employer to pay less than N70,000 to any of its workers.”

Daju further urged private employment agencies to ensure that any contracts they undertake include a commitment from their principals that workers receive at least the N70,000 minimum wage. He reiterated that this amount should be the take-home pay after all necessary deductions.

In response, the President of EAPEAN, Dr. Olufemi Ogunlowo, expressed the association’s commitment to the minimum wage law and its goal of providing decent employment opportunities while preventing the exploitation of human resources. However, Ogunlowo called on the government and the Nigeria Labour Congress (NLC) to clarify whether the N70,000 minimum wage is the net salary after deductions or the gross amount before any reductions. He emphasized that clear communication from the government on this issue would ensure smooth implementation.

“As a labor union in the private sector, we are committed to the implementation of the minimum wage. Our principals and clients have also keyed into the minimum wage. However, the government must clarify whether the N70,000 minimum wage is net or gross,” Ogunlowo said.

Speaking at the event, the Chairperson of the NLC Lagos State chapter, Funmilayo Sessi, acknowledged the difficult economic conditions affecting Nigerian workers. She highlighted that while the N70,000 minimum wage was a step in the right direction, it was still insufficient to cover basic living expenses in the face of current inflation and rising costs.

“The N70,000 isn’t enough in the current economic realities,” Sessi said. “By the time the consequential adjustment is concluded, all private employment agencies should immediately start paying their workers the N70,000 minimum wage. The NLC in Lagos State will see to the strict enforcement of the minimum wage.”

Sessi also warned private employers to comply with the new law and avoid confrontation with the NLC over minimum wage issues. She reiterated the union’s readiness to enforce the law to protect workers’ rights and ensure that the minimum wage benefits are felt by all.

The government’s push for the enforcement of the N70,000 minimum wage reflects its commitment to improving workers’ welfare amidst harsh economic conditions. However, private sector employers and agencies seek further clarification to avoid ambiguity in its implementation. As the situation unfolds, the NLC is poised to ensure that the new wage law is strictly observed, while workers remain hopeful for further measures to address the rising cost of living in Nigeria.