Federal Government has threatened to sanction the management
of the National Assembly over the flagrant breach of the provisions of the
National Minimum Wage Act, 2019, signed into law by President Muhammadu Buhari.
The threat notice was contained in the 2-page Circular with
Reference No: SWC/S/65/III/696 dated 21st February 2022, titled:
‘Implementation of the National Minimum Wage of N30,000 per month – Reminder’,
signed by the Chairman, National Salaries, Incomes and Wages Commission,
Barrister Ekpo Nta, and addressed to the Clerk of National Assembly, Architect
Amos Ojo.
The Circular was also addressed to the Chief of Staff to the
President; Deputy Chief of Staff to the President; Ministers and Ministers of
State; Secretary to the Government of the Federation (SGF) and Head of Civil
Service of the Federation; Governor of Central Bank of Nigeria (CBN), Chairmen,
Federal Commissions; Federal Permanent Secretaries; National Judicial Council
(NJC), Secretary, Federal Judicial Service Commission; Directors-General and
Chief Executives of Parastatals, Agencies and Government-Owned Companies.
Others are the Auditor-General for the Federation;
Accountant-General for the Federation; Director-General, Budget Office of the
Federation; Heads of State Civil Services; Secretaries to State Governments;
Chairman,, Local Government Areas; Directors-General and Chief Executives of
Parastatals, Agencies and Government-Owned Companies; Director-General, Nigeria
Employers’ Consultative Association (NECA); Director-General, Nigeria
Association of Small and Medium Enterprises (NASME); President, Nigeria Labour
Congress (NLC); President, Trade Union Congress (TUC) and Private Sector
Agencies and Non-Governmental Organisations.
The NSIWC Chairman in the letter said: “The National
Salaries, Incomes and Wages Commission hereby reiterates that all employers of
labour are expected to implement with effect from 18th April 2019, the National
Minimum Wage (NMW) of N30,000 per month subject to the provisions of Section 4
of the National Minimum Wage (Amendment) Act 2019.
“Accordingly, any Federal Government Agency that is yet to
implement the National Minimum Wage and the consequential adjustments arising
therefrom in line with NSIWC circulars that were issued on 14th November 2019,
should clear with the Commission if they have problems with the implementation.
“Agencies, that were not mentioned in the circulars but were
required to clear with the Commission before implementation, that have already
implemented theirs without requisite approvals from the Commission, should
submit details of implementation for verification/ratification.
“State/Local Governments and private sector organisations
are at liberty to consult the Commission for guidance as they may deem fit.
“The Commission will monitor implementation and compliance
in line with the provisions of Section 2 of the National Minimum Wage
(Amendment) Act 2019. Thereafter, sanctions, as provided in Sections 13, 14 and
15, will apply where necessary.
“Please bring the contents of this circular to the notice of
your Ministries, Departments and Agencies, and stakeholders.
“All enquiries arising from this circular should be directed
to the Commission,” the Circular read.
In response to the NSIWC’s Circular, Chairman, National
Assembly Service Commission, Engineer Ahmed Kadi Amshi via a Circular with
Reference No: NASC/CIIO/GC/II/99 and dated 28th February 2022, directed the
NASC Secretary, to attend a meeting where the modalities of the payment of the
arrears and present the financial implications of the balance of the arrears
for the staff of the Commission.
“We are in receipt of a circular with Reference No:
SWS/65/III/696 dated 21st February 2022 on the above subject matter.
“The Circular implies that the implementation of the
National Minimum Wage for all government establishments is with effect from
18th April 2019.
“Consequent upon this, the National Assembly Service
Commission is expected to pay its staff the balance of arrears from 18th April
2019 to 31st December 2019.
“In view of the above, the National Assembly Service
Commission hereby invites you, along with your relevant management staff for a
meeting on Thursday 3rd March 2022 by 12noon at the Commission to discuss the
modalities of the payment of the arrears.
“You are expected to come with the financial implications of
the balance of the arrears for the staff of the Commission.”
Section 9 of the Act provides that: An employee shall pay to
the workers a wage not less than the national minimum wage, subject to
statutory deductions.
“Any employee who fails to comply with subsection (1),
commits an offence and is liable on conviction to pay: a fine not exceeding 5%
of the offenders monthly; all outstanding arrears of the workers’ wages and an
additional penalty of not less than the prevailing Central Bank of Nigeria
lending rate in the wages owed, for each month if continuing violation,
provided that the power to order payment on account of wages under subsection
(2) shall not derogate from the right of the worker to recover wages due to him
by any other proceeding in a court of competent jurisdiction.”
Section 10 of the Act further provides that: “An employee
shall keep such records of wages or conditions of employment as are necessary
to show that the provisions of this Act are being complied with in respect of
workers in his employment and to retain the records for three years after the
period to which they refer.
“Any employer who fails to comply with subsection (1),
commits an offence and is liable on conviction to a fine not exceeding
N75,000.00; and an additional penalty not exceeding N10,000.00 for each day the
offence continues,” the National Minimum Wage Act read in part.
At the meeting initiated by the NASC Chairman, Engineer
Amshi and Clerk to the National Assembly, Architect Ojo confirmed receipt of
the NSWIC Circular.
According to Engineer Amshi, the letter from the National
Salaries, Income and Wages Commission, clarified that April 2019 was the
authentic date of implementation of the National Minimum wage in the National
Assembly Service, instead of 2020 as previously presented.
He, however, observed that the letter was silent on the
‘second leg’ which is the approval of other allowances from the Presidential
Steering Committee, hence, the need for the Union to continue to follow-up.
The Chairman during the meeting recommended three possible
proposed methods of payment of Minimum Wage balance of 8 months, 13 days.
According to him, NASC management is pursuing a review/
amendment of the National Assembly 2022 Budget to accommodate funds to
implement the balance of Minimum Wage arrears since it was not captured in the
2022 Budget.
Management also unveiled plans to mop-up money on monthly
basis to pay on quarterly basis as scheduled by the management of National
Assembly and Commission: 2nd Quarter (June) for Grade Level 03 – 07; 3rd
Quarter (September) for Grade Level 08 – 10; 4th Quarter (December) – GL 12 –
13; and 1st Quarter 2023 (March) – Grade Level 14 – 17, respectively.
According to sources privy to the meeting, the management
also proposed to embark on bit-by-bit monthly payment into salaries for
everyone until all payments are made (an option management considers not too
good for staff).
The Chairman, however, observed that the quarterly schedule
became necessary because the management of both services received allocation on
monthly basis and, in order not to affect other financial programmes of both
Services.
To this end, the Commission urged the Union to choose one of
the modes of payment of the Arrears from the above proposals.
Section 15(3a – c) of the National Assembly Service
Commission Act, 2014 provides that: “The Commission shall defray from the fund
all expenditures incurred by it and shall include the cost of administration;
the payment of salaries, fees or other remunerations, or allowances, pensions
and gratuities payable to members and employees of the Commission; and anything
done in connection with any of its functions under this Act.”
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