₦airaland Forum

Hello Guys!

I have been seeing a series of arguments regarding this minimum wage of a thing and I hope to get an insight from experts on something confusing me.

Will there be an increase in the salary of people currently earning above minimum wage?

Eg you currently earn 300k and the minimum wage is increased to 100k from 30k (about a 70% increase). Does that mean the person earning 300k will also get a 70% increase to 510k?

No. OMG, FTC for a long time. Seun come and celebrate with me.

Meanwhile, on the above question, those working in the office of the Head of Civil Service, Minister of Finance and Accountant-general of the federation are the right people to contact.

WhizdomXX:
No

Okay, so how is it calculated?

What I know is that in 2019 when the MW was increased from 18000 to 30000, the consequential increase on my salary as a level 09 staff was just a little above 7000 (seven thousand naira).

dreamxhaser:
Hello Guys!

I have been seeing a series of arguments regarding this minimum wage of a thing and I hope to get an insight from experts on something confusing me.

Will there be an increase in the salary of people currently earning above minimum wage?

Eg you currently earn 300k and the minimum wage is increased to 100k from 30k (about a 70% increase). Does that mean the person earning 300k will also get a 70% increase to 510k?

The calculation is CURRENT SALARY X NEW MINIMUM WAGE ÷ OLD MINIMUM WAGE

For example
current salary =70,000
new minimum wage = 120,000
old minimum wage= 30,000

70,000 X 120,000 ÷30,000 = 280,000

Chimarto:
For example
current salary =70,000
new minimum wage = 120,000
old minimum wage= 30,000

70,000 X 120,000 ÷30,000 = 280,000

This is not only wrong but very misleading.

AmiableMosquito:
This is not only wrong but very misleading.

Try this his calculation with that your 2019 wage to see if it rhyme.

So how are they now calculated? Remember that steps and levels are also added.

Beautifulday:
Try this his calculation with that your 2019 wage to see if it rhyme.

E no rhyme at all. I arrived at 90k+ instead of the 62k or thereabout I started receiving after the consequential adjustment

AmiableMosquito:
E no rhyme at all. I arrived at 90k+ instead of the 62k or thereabout I started receiving after the consequential adjustment

Cool! The adding is not much nah in the real sense

Good question OP.

Civil servant like seunmsg can throw more light

Beautifulday:
Cool! The adding is not much nah in the real sense

But the consequential inflation, no be for here o!

Mk i watch film


Nlfpmod

dreamxhaser:
Okay, so how is it calculated?

Not the exact amount is added like you thought but they're increments across board. Those at the top of the chain get the least added amounts.

dreamxhaser:
Okay, so how is it calculated?

There's no calculation at all. Never mind all the nonsense you've been reading.
The law simply says you can't pay lower than a certain amount. THAT’S ALL!
Any other salary above that is by negotiation - what you're willing to accept and what the employer is willing to pay

adioolayi:
No...

There is wage structure that will be used.

The only cadre that will enjoy full 70% increase will be those at Level 1 Step 1....others, there will be increase..but not 70%....it reduces as the level and steps advances

Another nonsense

The minimum wage is in your basic salary.
The new difference is what will reflect in your salary.

If old MW is 30k and now increased to 65k, the increasement (35k) is what will reflect in your accnt. In may not even be upto that if they tax it.

Note that in your monthly basic salary, is the minimum wage + all payable allowances for the month, e. g Housing alloqance, transport allowance, feeding allowance etc.
All these put together with the minimum wage is your salary for the month.

dreamxhaser:
Hello Guys!

I have been seeing a series of arguments regarding this minimum wage of a thing and I hope to get an insight from experts on something confusing me.

Will there be an increase in the salary of people currently earning above minimum wage?

Eg you currently earn 300k and the minimum wage is increased to 100k from 30k (about a 70% increase). Does that mean the person earning 300k will also get a 70% increase to 510k?

No...

There is wage structure that will be used.

The only cadre that will enjoy full 70% increase will be those at Level 1 Step 1....others, there will be increase..but not 70%....it reduces as the level and steps advances

Chimarto:
For example
current salary =70,000
new minimum wage = 120,000
old minimum wage= 30,000

70,000 X 120,000 ÷30,000 = 280,000

the old minimum wage has no business in the calculation

If the minimum wage increases by 200% , that is from 30,000 to 90000, Just know that those at level 1 step 1 will get that 90000 naira.
I can't remember the formular now but when I calculated mime in 2019, it turned out that those at level 14 to 16 would expect a 15% rise in salary for every doubling of the minimum wage. For example, if im earning 300,000 at level 14 or 15, if minimum wage doubles from 30000 to 60000 for instance, my salary increases by 45,000 naira... those at level 11 to 13 will have maybe a 25% increase.., those at level 8 to 10 may have a 35% increase in their salary.. its only those at level 1 that will get 100% increase.

So in essence, for those at level 14 to 16, once minimum wage goes up from 30000 to 60000, their salary goes up by 15%... if minimum wage triples from 30000 to 90000, then their salary goes up by 30%.

So the percentage by which your salary goes up depends on your level. From 100% at level 1 to 15% at the highest levels.

Day169:
But the consequential inflation, no be for here o!

It can't cause inflation. We just like blowing grammar we don't know what it really means and how it work.

You just show small proof from the minimum wage of a thing. You see how that guy understood it? Different people have different understanding too.

How many people are really employed in the public sector? How much do Nigeria pay as salary per month?

With a population of 200 million, minimum way of 500k for 10 million workforce will be like a drop of water in an ocean.

If 200 million people are paid 100k per month in a population of 200 million country, it can't even cause inflation. This is because these 200 million are paid according to their labor. They can't just make a purchase. They factor their labor into their purchases.

You see, they purchase their needs most times more than their want.

What causes inflation is free money in circulation. E.g if a yahoo boy make 100k in a month, he is ready to burst that same 100k a day on what doesn't have value to him. Because his purchases doesn't have value to him, he is willing to pay more than it's value.

The consistent payment for goods and services above their value is what causes inflation.

The bolded is very important

Chimarto:
For example
current salary =70,000
new minimum wage = 120,000
old minimum wage= 30,000

70,000 X 120,000 ÷30,000 = 280,000

This is not possible.

You have used same multiplying effect for someone earning minimum wage and someone already earning 70k...it doesn't work that way

DaddyCoool:
There's no calculation at all. Never mind all the nonsense you've been reading.
The law simply says you can't pay lower than a certain amount. THAT’S ALL!
Any other salary above that is by negotiation - what you're willing to accept and what the employer is willing to pay



Another nonsense

Not nonsense....one thing is clear...All FGN workers will get an increase in salary once minimum wage is increased.

It's private sector that can tell certain cadre of workers that they won't be able to increase their salary and there is nothing they can do about it

To calculate the minimum wage in Nigeria, you can use the following formula:

New Minimum Wage Calculation:
If the old minimum wage is NGN18,000, and the new minimum wage is NGN30,000, the increment is 67%.
Formula: 67/100 x 18000 = 30000

I actually cross-check this with NYSC ALLAWEE when old ALLAWEE was still 19800 before minimum wage was increased to 30k and new allawee 33k.

Usmanovic95:
To calculate the minimum wage in Nigeria, you can use the following formula:

New Minimum Wage Calculation:
If the old minimum wage is NGN18,000, and the new minimum wage is NGN30,000, the increment is 67%.
Formula: 67/100 x 18000 = 30000

I actually cross-check this with NYSC ALLAWEE when old ALLAWEE was still 19800 before minimum wage was increased to 30k and new allawee 33k.

Yes, it will be like that at that level because NYSC is essentially minimum wage. But it is not 67% increase that will be applied as you go higher. It gradually drops. Next level may be 60%, next one 55%, next 50% and so on till the people at the top may be getting just 5 to 10% increase in their salary.

phantom:
Yes, it will be like that at that level because NYSC is essentially minimum wage. But it is not 67% increase that will be applied as you go higher. It gradually drops. Next level may be 60%, next one 55%, next 50% and so on till the people at the top may be getting just 5 to 10% increase in their salary.

Hmmm, different Level/hierarchy has its own calculation I guess?

No

adioolayi:
Not nonsense....one thing is clear...All FGN workers will get an increase in salary once minimum wage is increased.

It's private sector that can tell certain cadre of workers that they won't be able to increase their salary and there is nothing they can do about it

FG ONLY has to increase salaries of those making less than minimum wage, so as does the private sector.
They don't have to do anything beyond that, and you can't sue them. They'll be quite within the law and their rights

WhizdomXX:
Not the exact amount is added like you thought but they're increments across board. Those at the top of the chain get the least added amounts.

This is correct.

The reason the minimum wage increment cannot be a fixed percentage across all levels of employees is simple:

Most employers (whether public or private) would find it either impractical or impossible to bear the consequential wage bill, and would then resort to drastic measures such as price increases, layoffs, etc.

Let's take a highly simplified example of a business centre with 4 employees, assuming a new minimum wage of N90,000:

POSITION CURRENT SALARY>>NEW SALARY
Cleaner 30,000 >> 90,000
Clerk 40,000 >> 120,000
Supervisor 60,000 >> 180,000
Manager 100,000>> 300,000

TOTAL = N230,000 >> N690,000

Assuming a previous monthly profit (after salaries, taxes etc) of N500,000 it means that the new wage bill automatically drops the profit by N460k (which is the total increase in salaries) leaving net profit of N40k only.

If you are the owner of the business centre, what will you do?

dreamxhaser:
Hello Guys!

I have been seeing a series of arguments regarding this minimum wage of a thing and I hope to get an insight from experts on something confusing me.

Will there be an increase in the salary of people currently earning above minimum wage?

Eg you currently earn 300k and the minimum wage is increased to 100k from 30k (about a 70% increase). Does that mean the person earning 300k will also get a 70% increase to 510k?

[Where did you get level 11 from?quote author=phantom post=130342218]If the minimum wage increases by 300% , that is from 30,000 to 90000, Just know that those at level 1 step 1 will get that 90000 naira.
I can't remember the formular now but when I calculated mime in 2019, it turned out that those at level 14 to 16 would expect a 15% rise in salary for every doubling of the minimum wage. For example, if im earning 300,000 at level 14 or 15, if minimum wage doubles from 30000 to 60000 for instance, my salary increases by 45,000 naira... those at level 11 to 13 will have maybe a 25% increase.., those at level 8 to 10 may have a 35% increase in their salary.. its only those at level 1 that will get 100% increase.

So in essence, for those at level 14 to 16, once minimum wage goes up from 30000 to 60000, their salary goes up by 15%... if minimum wage triples from 30000 to 90000, then their salary goes up by 30%.

So the percentage by which your salary goes up depends on your level. From 100% at level 1 to 15% at the highest levels.[/quote]

AmiableMosquito:
This is not only wrong but very misleading.

Calculation of New Salary Based on Minimum Wage Increase

1. **Current Salary and Minimum Wage:*
- Current Salary: 105,000
- Old Minimum Wage: 30,000

2. *New Minimum Wage:*
- New Minimum Wage: 100,000

3. *Difference Between New and Old Minimum Wage:*
{Difference} = 100,000 - 30,000 = 70,000

4. *Percentage Difference Between Old and New Minimum Wage:*
{Percentage Difference} = {100,000 - 30,000}{30,000} \right) \times 100 = 233.33%


5. Calculate 233.33% of Current Salary:
{Amount} = \left( \frac{233.33}{100} \right) \times 105,000 = 244,996.50


6. New Salary Calculation:
{New Salary} = 105,000 + 244,996.50 = 349,996.50

New Salary: 349,996.50