MINIMUM WAGE: REP IDENTIFIES BUSINESSES THAT WON’T PAY WORKERS N70,000

July 24, 2024

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Akin Alabi, a member of the House of Representatives, has said not all businesses would be mandated to pay the N70,000 minimum wage.

Alabi, who is the Chairman of the House Committee on Works, said businesses with less than 25 employees would be exempted from paying the new minimum wage.

The member representing the Egbeda/Ona-Ara Federal Constituency of Oyo State, made the clarification via a post on his X page.

He also said businesses that have part-time staff and workers on commission would not be mandated to pay the minimum wage.

According to Alabi, “Today (Tuesday), we amended Section 3 of the National Minimum Wage Act. Section 3 (1) was amended from N30,000 to N70,000. Section 3(1) amended the period of review from 5 years to 3 years.

“Here are some points of note from the National Minimum Wage Act: The minimum wage, as the name says, is the minimum amount an employer of labor is required to pay the lowest worker. For example, in the civil service, N70,000 is for Level 1, Step 1.

“It is not binding on staff working part-time or on commission basis. It is not binding on establishments with less than 25 employees.”