Home Finance FG Budgets N160bn For Minimum Wage Salary Increase
Finance - Profiles - January 2, 2019

FG Budgets N160bn For Minimum Wage Salary Increase

The Federal Government has budgeted N160bn this year to cover the adjustments that may result from the planned increase in the minimum wage.

The amount is contained in the budget proposal for 2019 submitted by President Muhammadu Buhari to the National Assembly.

An analysis of the budget showed that the N160bn had been allocated to adjust salaries and increase salaries in government ministries, departments and agencies.

The amount is captured under the service wide vote in the 2019 budget document.

The N160bn is also projected to take care of arrears of promotion and severance benefits to civil servants.

The Minister of Budget and National Planning, Senator Udo Udoma, had said the government was committed to increasing the minimum wage.

Udoma had while speaking during the public presentation of the 2019 budget explained that already, provisions had been made in the 2019 budget for the wage increase.

He said, “Government committed to an increase in the Minimum Wage. Provision has been made for this in the 2019 budget.”

He said already, a high-powered technical committee had been set up to advise on ways to ensure that the adjustments in the minimum wage could be funded without necessarily increasing the level of borrowings.

He said the setting up of the committee became imperative so as to minimise any potential threat of wage increase on the level of inflation.

He said, “A High-powered Technical Committee has been set up to advise on ways to ensure that the attendant wage adjustments for those already over the minimum wage can be funded without increasing the level of borrowing.

“The committee is also to advise on ways to implement these consequential adjustments in such a manner as to minimise their inflationary impact.

“The recommendations of the committee will be captured in the Finance Bill to be presented to the National Assembly together with the Minimum Wage Bill.”

READ ALSO: 2019 national budget: President Muhammadu Buhari presents N8.83tn, raises hope for minimum wage increment

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