Reps mentions those who will not pay N70,000 minimum wage

In a recent development concerning Nigeria’s minimum wage, Akin Alabi, Chairman of the House Committee on Works, clarified that not all businesses would be obligated to pay the newly revised N70,000 minimum wage.

The amendment to Section 3 of the National Minimum Wage Act, which increased the minimum wage from N30,000 to N70,000 and adjusted the review period to three years, includes specific exemptions.

According to Alabi, businesses employing fewer than 25 workers are exempt from the new wage requirement.

Additionally, employees working part-time or on commission basis are not covered under the revised wage structure.

“The minimum wage is applicable to the lowest-paid workers in the civil service, such as those at Level 1, Step 1,” Alabi stated on his social media platform.

The clarification follows amendments made by the House of Representatives, aiming to balance the wage increase with considerations for smaller enterprises and workers with non-traditional employment arrangements.

According to Daily Post, Alabi emphasized that the intent of the amendment is to ensure fair wages while recognizing the varied operational capacities of businesses across different sectors.

The amendment has sparked discussions among stakeholders, with some supporting the exemptions for small businesses, while others argue for broader coverage to protect all workers regardless of establishment size or employment type.