₦airaland Forum

Timetravel88:
There are still inflationary trends to be circumspect should the new minimum wage reflect across board in the civil service (which I understand isn’t usually the case). Nigeria not being a production based economy will be one of the driving forces towards hyperinflation if wages are increased without a commensurate GDP to keep things in balance.
As purchasing power increases, prices of goods and services increases. This could have been contained if the local production capacity was at par with wage increment. More money in the hands of workers translates to more buying power in a market that’s dependent on imports which is vulnerable to foreign market forces.
I’ll end my submission by positing that excess money in circulation (recurrent expenditure) without an active manufacturing sector is a prerequisite for inflation.

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.

Mandate1:
though I'm in full support of your latter submission, but I must deviate in that simple economics made us to understand that an increase in salary will directly increase the purchasing power of the people and further inflation. The inflation this time might not be as overblown by the political class, but there will be a slight increase in the price of commodities. This can be checked if the govt reduces the volume of money in circulation.

The politicians on the otherhand are the alpha and omega of inflation.

Kanixt:
If going by status quo unless edun dicided to change it.

Ok. Assump your salary is 100,000
Minimum wage is 30,000

And FG approved 105, 000 as a new minimum wage.

Then your new salary will be as follows:
Your old salary/old minimum wage; 100,000/30,000 = 3.33
Then, 3.333×105,000 = 350,000

Your new salary will now be 350,000

Besides your peculiar allowance or any other allowances by %

AmiableMosquito:
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).

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

OffsahBoye:
Will this percentage be that of salary or of the increment in the wage
Let's say the MW moved from 30-90k
Will the increment be a percentage of the 90k or of the salary each level was collecting before?

NaijaphiliaBlog:
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?

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

Beautifulday:
If government wants to reduce prices of goods and services. It is very simple. Import the goods and services to meet demand at equilibrium.

The local production is not enough. The high prices is due to smuggling. The round tripping before the goods get into the country make the price go high. And because the import are seen as premium to local. People will buy at higher prices. Because this smuggled goods are consistent and in abundance the local jack up their price when the smuggled are scarce.

This circle continue repeating itself. If government allows importation. The goods will come in cheap forcing the local market to reduce their prices.

ncdegreat:
Pls I wan to know will this minimum wage increase also affect the nysc Corp members from the usual 33k to 60k if implemented?

Beautifulday:
That is not the case. What is the number of workers we have in Nigeria? Can the salary of the workers sustain the local market alone not more of foreign market?

We don't import rice per say, why is the price of the roof despite the fact that we have cash crunch and low income workflorce?

We can actually force prices of goods down by massive importation. We always cry importation is our problem, we need to start producing.

The major purpose of production is to create job not to reduce importation. If the reason you want to go to manufacturing is to reduce importation, you will enter hyperinflation with time.

The main purpose of production is to create job. The workforce of a nation is what sustain their economy not by production but by purchasing power.

More production means more jobs. More jobs means more money. More money means more purchasing power. More purchasing power means more economic activities. More economic activities means robust economy.

It is erroneous to believe that more purchasing power can cause increase in prices of goods and services. I will like to know how such a thing can happen.

Rinoxy:
Wow! While for me, my pay was increased with 18000 plus as a level 8 staff then(2019).

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

AmiableMosquito:
you are definitely not on CONPSS. Maybe CONRAISS?

theowane:
It will be of the old Salary, but ofcourse the percentage will be far higher this time cos the percentage increase from 30K to the present one would be higher.

Mind you, assuming, but not concededing that the MW is increased to 90K, it will be a 200% increase. That of 2019 was less than 50%, therefore the consequential adjustment too will be higher.
I assume for level GL 7 to 8 it will be about 100% in this case, then going down as the GL increases...
Just my humble thoughts oooooo

alphaNomega:
all these things you wrote does not apply in the real world. The two major reasons things are expensive are greed and government

alphaNomega:
lol, blalablublu is in aso rock to reduce purchasing power for the next 8 years

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.

AmGreat1234:
Pls how did you arrive at the 67%?

Stargurl20:
I heard this minimum wage increment will not have effect on NYSC allowee. Is it true?

Stargurl20:
I heard this minimum wage increment will not have effect on NYSC allowee. Is it true?

Usmanovic95:
What is your source ma'am

Stargurl20:
You need not ask of my source when I'm also in doubt. I brought it hear coz I wanna hear from the experienced ones.

Usmanovic95:
It's definitely a rumor, corp members are also government worker and also on government payroll. And historically,when allawee is increased,it also reflect on NYSC ALLAWEE so I doubt we will have a different scenario this time.

alwaysemmy:
To calculate new minimum wage increases for other level workers in Nigeria, you can follow these steps:

1. Determine the new minimum wage amount (e.g., ₦35,000).
2. Calculate the percentage increase: (New minimum wage - Old minimum wage) / Old minimum wage) x 100.
3. Identify the other level workers' current wages (e.g., ₦40,000, ₦50,000, etc.).
4. Apply the percentage increase to their current wages:
- Multiply their current wage by the percentage increase (as a decimal).
- Add the result to their current wage.

Example:

Old minimum wage: ₦30,000
New minimum wage: ₦35,000
Percentage increase: (₦35,000 - ₦30,000) / ₦30,000 = 16.67%

Other level worker's current wage: ₦40,000
Increase: ₦40,000 x 0.1667 = ₦6,668
New wage: ₦40,000 + ₦6,668 = ₦46,668

Repeat this process for each level of workers, using their respective current wages and the same percentage increase.

Note: This calculation assumes a straightforward percentage increase application. Actual calculations may vary depending on specific circumstances, such as varying wage scales or negotiated increases.

PrettySmart:
For a corp member
Allawee = 33,000
Minimum wage = 30,000
New minimum wage = 100,000

To calculate New Allawee
% increase 100k-30k/100k = 70%

Then, increase = (0.7×33000) = 23,100

New Allawee = 23,100 + 33,000

What is this bros calculating?
= 56,100