Increased Minimum Wage To Balloon FG’s Personnel Costs To 2.3 Trillion Naira
It is not clear yet what percentage of increase that will be approved for the minimum wage.
But if the demand for a 30,000-naira minimum wage is eventually approved by the Federal Government, over 2.31 trillion naira would be paid as salaries to the over one million workers on the payroll of the Federal Government.
According to a Punch report, figures obtained from the Budget Office of the Federation show that the Federal Government is planning to make a proposal of 2.31 trillion naira as personnel costs for workers on the payroll.
The 2.31 trillion figure is contained in the 2019 Budget Call Circular, obtained from the Budget Office of the Federation.
The Budget Call Circular signed by the Minister of Budget and National Planning, Senator Udo Udoma, sets out the requirements and instructions that must be met and followed in the preparation of the 2019 Federal Government budget proposal.
A breakdown of the 2.31 trillion-naira personnel costs provisions shows that about 2.148 trillion naira is being proposed for the payment of salaries of workers in the Ministries, Departments and Agencies of government.
Similarly, a budgetary amount of 160.5 billion naira is to be earmarked to pay the salaries of workers in the government-owned enterprises.
There are about 950 MDAs of government having about 1.5 million workers, according to top government officials with knowledge of the Integrated Personnel Payroll Information System.
It was learnt that while the financial implications of the proposed wage increase might not have been fully determined, whatever adjustments that would be made could be captured through a supplementary budget after the main budget had been presented to the National Assembly later this month.
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