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FG introduces revamped wage structure

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By Mercy Kelani

This system will offer rewards to employees based on their productivity levels.

On May 13, 2024, the Federal Government announced the introduction of a revamped wage structure in the civil service that will be tied to the performance of individual employees. According to the government, employees at the same rank may receive varying levels of pay due to the system in place. The government acknowledged the importance of productivity in driving the country’s economic growth, which is why they are exploring the development of a new wage system to boost innovation.

During a gathering with members of the press who cover labour issues, Nasir Raji-Mustapha, head of the National Productivity Centre, shared this information at the start of the week. In his statement, he mentioned that they are currently working on implementing a new wage structure focused on productivity. This system will offer rewards to employees based on their productivity levels, regardless of their job grades. This means that individuals with the same salary range could potentially earn varying wages. The NPC boss emphasized the importance of organized labour’s involvement in the new proposal for a productivity-led wage system, stating that it was essential to have their support and input in order to successfully carry out such a task.

The upcoming step would involve gathering feedback from stakeholders.

Raji-Mustapha emphasized the importance of including labour as a key stakeholder in the project, ensuring that they are informed and involved in the research process. Researchers always take into account the needs and perspectives of those who will receive the reports. Approximately three to four years ago, they initiated a project and organized a stakeholder forum. This forum included the participation of labour unions. In addition, they reached out to both the NLC and TUC through a memo to inquire about their potential support for the proposed wage system. Both unions expressed a positive reception to the idea.

Furthermore, Raji-Mustapha revealed that the initial phase of the study had been completed and the report was now available. He mentioned that the upcoming step would involve gathering feedback from different stakeholders to review and provide input before officially submitting it to the Federal Government for potential approval. The NPC boss revealed that the Centre was working together with various global entities and groups to enhance the efficiency and expertise of Nigerian employees, in order to make a positive influence on the economy.

NPC has reintroduced the importance of productivity at the NYSC camps.

He mentioned that the NPC had expanded its collaboration with various international organizations, including the International Labour Organization, the Japanese International Cooperation Agency, the Africa Productivity Association, and the Asia Productivity Association. He stated that the centre has made significant efforts to promote productivity and advocate for youth, specifically focusing on youth corps members at NYSC camps. Additionally, he mentioned that the NPC has successfully reintroduced the importance of productivity at the NYSC camps through preaching and promotion initiatives.

Additionally, it was revealed that Vice President Kashim Shettima is set to deliver the keynote address at the National Productivity Summit in Abuja over the next two days, as organized by the centre. The event was scheduled to take place on May 14, 2024. The Nigerian labour law, established in 2004, covers various aspects such as employee rights, working conditions, minimum wage, termination procedures, and government-set regulations. This version of the law came into effect five years after the adoption of the current Nigerian constitution.

Related Article: NLC Proposes ₦709000 as the New Minimum Wage

More so, the Labour Act of 2004 established the baseline for the lowest wage a Nigerian worker should earn, with the initial minimum wage being ₦5,500.00 per month. This was later increased to ₦18,000.00 per month with the enactment of the National Minimum Wage Act of 2011. According to the Labour Act of 2004, companies with less than 50 employees are not required to follow the minimum wage laws in Nigeria. However, in 2019, there was a proposal to raise the minimum wage to over 50,000 Naira, but it was ultimately set at 30,000 Naira and is currently being implemented.

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