A member of the House of Representatives, Akin Alabi, has clarified that not all businesses will be required to pay the newly established minimum wage of N70,000.
Alabi, who serves as the Chairman of the House Committee on Works, announced that businesses with fewer than 25 employees will be exempt from this mandate.
The representative for Egbeda/Ona-Ara Federal Constituency of Oyo State made this clarification through a post on his X page.
He further explained that businesses employing part-time staff or workers on a commission basis will not be obligated to adhere to the new minimum wage regulation.
“Today (Tuesday), we amended Section 3 of the National Minimum Wage Act. Section 3 (1) was amended from N30,000 to N70,000. Section 3 (1) amended the period of review from 5 years to 3 years,” Alabi stated.
He added, “Here are some points of note from the National Minimum Wage Act: The minimum wage, as the name says, is the minimum amount an employer of labor is required to pay the lowest worker. For example, in the civil service, N70,000 is for Level 1, Step 1.”
Alabi emphasized, “It is not binding on staff working part-time or on a commission basis. It is not binding on establishments with fewer than 25 employees.”