As workers anticipate the implementation of Nigeria’s new N70,000 minimum wage, not all will benefit from this increase.
According to an investigation by Vanguard, the Tripartite Committee on the New National Minimum Wage recommended that certain categories of workers be exempt from this new wage standard.
The committee’s 10-man sub-committee, which included the Minister of State for Labour and Employment, Governor Mohammed Bago of Niger State, and other stakeholders, suggested that exemptions should be based on revenue or net income rather than the capacity to employ.
This approach aims to avoid unfair exclusion of poor workers and introduce flexibility, allowing businesses to apply for exemptions based on financial hardships.
Criteria for exemption include businesses classified as Nano (managed by 1-3 persons with capital below N50,000), micro-enterprises with 10 or fewer employees, startups, and establishments with less than N50 million in quarterly revenue or N200 million annually.
Seasonal workers, those on commission contracts, and workers in sectors regulated by other laws, such as shipping or aviation, are also exempt.
The committee emphasized the challenges in enforcing minimum wage compliance, particularly in the informal sector, where wages vary widely and are often not based on a fixed monthly salary. They also noted that many small businesses and startups may struggle to meet the new minimum wage requirements, justifying the need for exemptions.