FG to begin 40% pay rise for workers ahead of proposed subsidy removal in June

The Federal Government is set to begin the payment of the planned 40 per cent increase in civil servants’ pay by the end of April.

President Muhammadu Buhari is reportedly expected to give his final assent for the disbursement of the payment, and when he does, the pay rise will come about two months before the proposed June date of the petrol subsidy removal.

According to ThePunch, the Director of Press and Public Relations, Ministry of Labour and Employment, Olajide Oshundun, said the government might begin the payment by the end of April.

The pay increase tagged consequential allowance is believed to have been proposed to cushion the effect of petrol subsidy removal in June.

Last year, President Buhari affirmed that the costly petrol subsidy would end in 2023.

However, Oshundun said she is not sure if the president has approved the proposal for the pay rise yet. 

She said, “Consequential allowance Salaries will be increased by 40 per cent for civil servants from level 1 to level 17.

“What we receive now is called consolidated public service salary structure, it is the combination of basic and all allowances. So, the increase will be 40 per cent of what a public servant is earning now.

“They will start paying from the end of this month (April) and the arrears of January, February and March will be paid later. The salary increase is effective from January 2023. That is the proposal submitted by the committee set up to look into salary adjustment for civil servants, but am not sure if the President has signed it yet.”

It would be recalled that in March, Chris Ngige, the Minister of Labour and Employment, made it known that the Federal Government had approved a pay raise for civil servants.

The National Vice President of the Trade Union Congress, Tommy Etim in an interview with ThePunch confirmed the move by the government.

Etim said the government plans to increase “allowances and not salaries”.

He said, “I am aware of the moves by the government and the payment is to start from January. The new payment is not an increase in workers’ salaries. It is a peculiar allowance and not an increase in salary, so we don’t misinform the public. 

“It is just an increase in basic salary and not across board. Other components are not touched so that the market woman will not think the government has increased salary. It is an allowance because of the peculiar circumstances surrounding the removal of fuel subsidy and inflation. An allowance is not a salary. No civil servant has received so I cannot speak authoritatively until it hits everyone’s bank account.”

He, therefore, urged the government to consider increment of other allowances such as rent and transportation.