FG To Slash Salaries Of Those Earning Above Minimum Wage
President Muhammadu Buhari yesterday said the salaries of all those earning above the minimum wage would be reviewed.
Speaking during the inauguration of the technical Advisory Committee on the implementation of New National Minimum Wage, chaired by Bismarck Rewane, at the council chambers, the president said the process of the review would commence after the passage of the new minimum wage bill.
“However, we anticipate that after the new minimum wage bill has been passed into law, we will be going into negotiations for salary review for all the workers who are already earning above the new minimum wage. It is therefore important that we are properly prepared to meet these demands,” he said.
The President who said a provision for the new minimum wage has been made in this year’s budget proposal, said he was committed to the upward review of the minimum wage
“As you know we, at the Federal level, have made adequate provision for the increase in the Minimum Wage in our 2019 Budget proposals which we submitted to the National Assembly.
“Therefore, we will be able to meet the additional costs that will be incurred in moving up all personnel who are currently earning below the new minimum wage,” he said.
Buhari explained that even though the subject of a National Minimum Wage is in the Exclusive Legislative List, they have been meeting with the State governments.
“It is imperative that the Federal Government carries the State Governments along in determining any upward review of the minimum wage for workers.
“This is especially necessary considering the prevailing public sector revenue challenges, which have made it extremely difficult for some of the governments to pay workers as and when due,” he said.
The President added that: “I want to make it clear that there is no question about whether the National Minimum Wage will be reviewed upwards. I am committed to a review of the Minimum Wage.
“We must therefore look at ways of implementing these consequential wage adjustments in a manner that does not have adverse effects on our national development plans, as laid out in the Economic Recovery and Growth Plan (ERGP).
“The ERGP sets appropriate targets for levels of Capital Expenditure, Public Debt, Inflation, Employment, etc. It is absolutely important that the implementation of a new minimum wage does not adversely affect these targets, and thereby erode the envisaged gains for the workers. “
He said they were currently working on the final steps that would lead to the submission of a National Minimum Wage Amendment Bill to the National Assembly.
He said the technical committee was set up to advise Government on how best to fund the new minimum wage , in a sustained manner, the additional costs that will arise from the implementation of the consequential increases in salaries and allowances for workers currently earning above the new minimum wage.