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Employers Will Face Jail Time for Not Paying New Minimum Wage – FG

The Federal Government has urged private sector recruitment agencies to comply with the new minimum wage of N70,000. It warned that failure to do so will lead to penalties, including possible jail time.

The government explained that the new minimum wage is essential to help workers cope with the economic challenges. It stressed that no worker in Nigeria, whether in government or private jobs, should receive less than the set wage.

Speaking at the 13th Annual Meeting of the Employers Association for Private Employment Agencies of Nigeria in Ikeja, Lagos, the Permanent Secretary of the Ministry of Labour and Employment, Kachollom Daju, delivered the message. John Nyamali, Director of Employment and Wages, represented her.

Daju highlighted, “The new wage is a legal requirement, and any employer paying less than N70,000 is committing a crime. Private employment agencies must include this in contracts with their clients to ensure compliance. After all deductions, no worker should earn less than N70,000.”

She added that it’s a criminal offense not to follow the law, and offenders could face imprisonment. The government is determined to ensure that every worker gets the new minimum wage.

Dr. Olufemi Ogunlowo, President of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN), asked the government and Nigeria Labour Congress (NLC) to clarify whether the N70,000 wage is the amount before or after tax deductions. He pointed out that all unclear parts of the law need to be explained.

According to Ogunlowo, EAPEAN is already committed to following the minimum wage law and ensuring fair job opportunities for Nigerians without exploiting their labor.

“As a private sector labor group, we are committed to enforcing the minimum wage and following the law. Our clients and partners have also accepted the new wage,” Ogunlowo stated. However, he urged the government to make clear if the N70,000 is a net or gross amount.

Funmilayo Sessi, Chairperson of the Lagos State chapter of the NLC, acknowledged that the economic situation in Nigeria has made workers’ earnings insufficient, calling on private employers to ensure they pay the new wage.

She said,

“The N70,000 minimum wage is still not enough considering current economic conditions. Once salary adjustments are complete, private agencies should immediately start paying N70,000.”

Sessi further stressed that the NLC in Lagos will strictly enforce the payment of the new wage and advised private agencies to avoid conflicts by complying with the law.

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