FG to Sanction Private Employers Paying Below N70,000 Minimum Wage, Defaulters to Face Jail Term

 


 


The Federal Government of Nigeria has issued a stern warning to private-sector employers, emphasizing that paying below the newly set minimum wage of N70,000 could result in severe legal consequences, including imprisonment.

This directive was reinforced during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN), held in Ikeja, Lagos. John Nyamali, Director of Employment and Wages at the Ministry of Labour and Employment, representing the Permanent Secretary, Kachollom Daju, stressed the legal implications of failing to comply with the minimum wage law.

“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,” Nyamali stated. He added that the government remains committed to ensuring that no Nigerian worker earns below this wage, regardless of whether they are employed in the public or private sector.

Private employment agencies have been tasked with ensuring that all contracts they manage comply with this new wage structure. Nyamali stressed that the least paid worker should take home at least N70,000 after deductions, and employers who fail to implement this law could face imprisonment.

In response to the announcement, the President of EAPEAN, Dr. Olufemi Ogunlowo, called on the government and the Nigeria Labour Congress (NLC) to provide clear guidance on whether the N70,000 is a net or gross wage, stating that ambiguities in the minimum wage Act must be addressed.

“As an employers union, we are committed to implementing the minimum wage. However, the government must clarify whether the N70,000 is net or gross. We need the government and NLC to address these ambiguities so that the Act is clear to all,” Ogunlowo said.

Funmilayo Sessi, Chairperson of the Lagos State Council of the NLC, urged private employers to comply swiftly with the new wage structure, despite the current economic challenges faced by Nigerian workers. She noted that while the N70,000 wage may not be sufficient in today’s economy, it must be strictly enforced.

“The NLC in Lagos State will ensure that the N70,000 minimum wage is enforced across the board. Private employers should ensure compliance to avoid confrontation with the NLC on this matter,” Sessi warned.

As the government continues its push for the enforcement of the N70,000 minimum wage, both employers and employees await further clarification on the implementation of the wage law to ensure smooth compliance without legal consequences.

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