In an interview with Channels Television from 6:25, Festus Osifo, President of the Trade Union Congress (TUC), shed light on the often-misunderstood minimum wage adjustment process. He explained that when the minimum wage is increased, it has a cascading effect on the entire salary scale.
Osifo illustrated that if the minimum wage is set at N250,000, it will apply to grade level 1 step 1 employees. Consequently, the next higher grade level (grade level 1 step 2 or grade level 2 step 1) will also receive an adjusted salary increase, ensuring a proportional adjustment across the board.
According to him, “The way minimum wage works, which I think most Nigerians are conversant with today, is first of all, when you move the minimum; for example, let’s agree today that the minimum is N250,000. If you move that minimum (N250,000), that minimum is going to be applied to somebody on grade level 1 step 1, so once you do that, the next person who is going to be grade level 1 step 2 or that will be grade level 2 step 1, you have to do that adjustment.”….Sée Móre
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