Do you have a right to minimum wage?

The minimum wage has been a trending issue for months especially since the Federal Government increased the pay for workers from N30,000 to N70,000. And while there is excitement among many classes of workers, it has given rise to some questions on what it means for employers of labour and employees in private organisations and domestic staffs.

In 2019 the National Minimum Wage Act was passed and among several provisions, it provided that the minimum wage was to be reviewed by the Federal Government every five years. This, in addition to inflation and removal of subsidy, brought about the new Minimum Wage Act 2024 which has been signed to law by the President.

The new law reduces the number of years for the periodic review of the National minimum wage from five to three years. And it affects all employees both private and public. Any employment agreement for the payment of wage less than the national minimum wage is void.

However, like all rules, there are exceptions; these exception include any establishment in which workers are employed or paid on part-time basis or commission and piece rate, an establishment employing less than 25 persons; workers in seasonal employment like agriculture and any person employed in a vessel or aircraft to which the laws regulating merchant shipping or civil aviation apply.

Where an employer fails to comply with the new national minimum wage requirement, the employee, a trade union or Minister of Labour and Employment may enforce the provisions of the Act against such employer.

The employee may take his case directly to the National Industrial Court or may file a formal complaint with the Minister of Labour and Employment.. also, trade unions may demand for compliance with the provisions of this Act, on behalf of their members and shall not later than 30 days from the receipt of the workers complaint, file a claim against the employer at the National Industrial Court.

Failure to comply with the provisions of the National Minimum Wage Act is an offence, punishable upon conviction to a fine not exceeding 5% of the offender’s monthly wage, all outstanding arrears of the worker’ wages and an additional penalty of not less than the prevailing Central Bank of Nigeria lending rate on the wages owed, for each month of continuing violation.

In addition, all employers are required by the Act to keep records of wages or conditions of employment of their employees, to show that the provisions of the Act are being complied with in respect of workers.

These records are to be retained for a period of at least three years, failure of which would attract penalties.

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