Federal Government to Backdate New Minimum Wage
The Federal Government has announced that the payment of the new minimum wage will be backdated to July 29, 2024. This date marks the approval of the minimum wage bill by President Bola Tinubu, following its passage by the National Assembly. The clarification was provided by the National Salaries, Incomes and Wages Commission (NSIWC) during a press briefing on Tuesday in Abuja.
NSIWC Chairman, Ekpo Nta, explained that the decision to backdate the new minimum wage to July 29, 2024, stems from the President’s approval of the bill on that date. “The President has approved the revision of the Consolidated Public Service Salary Structure with effect from July 29, 2024,” Nta stated. This move contradicts an earlier statement made by Minister of State for Labour, Nkiruka Onyejeocha, who initially announced that the payment would begin on May 1, 2024.
The Federal Government emphasized that July 29, 2024, is the official start date for the new minimum wage because that was when President Tinubu assented to the National Minimum Wage Act. “The commission wishes to clarify that the effective date for the commencement of the National Minimum Wage is the 29th of July, 2024, as that was the day Mr. President assented to the act,” Nta explained.
He urged federal public service bodies, whether self-funded or treasury-funded, to reach out to the NSIWC if they have not yet received circulars outlining the new wage structure. Nta warned against uncoordinated implementation, which could disrupt salary scales within the federal public service.
In addition to the minimum wage revision, the Federal Government has approved adjustments to several salary structures, including the Consolidated Public Service Salary Structure and the Consolidated Universities Academic Salary Structure. Nta also mentioned that the NSIWC will provide guidelines on how pensioners, NYSC members, and interns will benefit from the new wage implementation.
Other revised salary templates include the Consolidated Medical Salary Structure. Consolidated Para-Military Salary Structure, Consolidated Police Salary Structure, and the Consolidated Armed Forces Salary Structure.
The backdated payment to July 29, 2024, means that any arrears would amount to only two months if the new wage is implemented by the end of October. The government also agreed to pay the wage award discontinued earlier, but only up to July 28, 2024.
The committee overseeing the consequential adjustments, led by Head of Civil Service of the Federation Didi Walson-Jack, took into account the prevailing economic conditions before finalizing the new minimum wage implementation date. The NSIWC Amendment Act 2024, along with the Memorandum of Understanding between the Federal Government and Trade Unions, has guided this decision.
