Nigerian Government Approves N32,000 Monthly Pension Increase for Retirees Amidst Economic Hardship
By Wisdom Tide
October 1, 2024
In response to growing economic challenges and the recent amendments to the minimum wage law, the Federal Government of Nigeria has approved a monthly pension increment of N32,000 for retirees. This decision aims to alleviate the financial burdens on retirees across key sectors of public service.
Background on the Pension Adjustment
The pension increment follows the implementation of the National Minimum Wage (Amendment) Act of 2024, which was signed into law on July 29, 2024. This amendment prompted consequential adjustments to public sector salaries, and now, corresponding adjustments to pensions have been made. The National Salaries, Wages, and Income Commission (NSIWC) issued a memo on September 27, 2024, confirming the increase.
Affected Public Service Sectors
The pension increase applies to retirees from various sectors, particularly those who served in crucial areas such as health, education, and security. This includes retired doctors, lecturers, police officers, paramilitary personnel, and members of the armed forces. The NSIWC Chairman, Ekpo Nta, highlighted the sectors covered under this adjustment in the memo.
The affected salary structures include:
- Consolidated Public Service Salary Structure (CONPSS)
- Consolidated Research and Allied Institutions Salary Structure (CONRAISS)
- Consolidated Universities Academic Salary Structure (CONUASS)
- Consolidated Tertiary Institutions Salary Structure (CONTISS II)
- Consolidated Polytechnics and Colleges of Education Academic Staff Salary Structure (CONPCASS)
- Consolidated Medical Salary Structure (CONMESS)
- Consolidated Health Salary Structure (CONHESS)
- Consolidated Para-Military Salary Structure (CONPASS)
- Consolidated Police Salary Structure (CONPOSS)
- Consolidated Intelligence Community Salary Structure (CONICSS)
- Consolidated Armed Forces Salary Structure (CONAFSS)
Implementation Timeline and Further Directives
The pension increase is retroactive and took effect from July 29, 2024, the date when the National Minimum Wage (Amendment) Act came into force. Additionally, the NSIWC has directed that agencies not covered by the listed salary structures should apply for pension adjustments in accordance with constitutional provisions.
The commission cited both the 1999 Constitution (as amended) and Section 3 (P) of the NSIWC Act, which empower agencies to request appropriate pension increases for their retirees. This ensures that pension adjustments reflect the financial realities retirees face today.
Government’s Commitment to Address Economic Hardship
This pension increase is part of the Federal Government’s broader strategy to alleviate the economic hardship faced by retirees. By aligning pension payments with current salary adjustments, the government aims to ensure that retirees receive adequate financial support, especially in the face of rising inflation and cost of living challenges.
The passage of the National Minimum Wage (Amendment) Act, signed by President Bola Tinubu, came after extensive consultations with labour unions. The pension adjustment underscores the government’s recognition of the critical need to safeguard the welfare of its former employees, ensuring that their pensions are fair and commensurate with the prevailing economic situation.
Conclusion
As the government continues to address the nation’s economic challenges, the N32,000 pension increase reflects a positive step toward improving the financial security of retirees. With the rising cost of living and economic uncertainties, this move seeks to provide much-needed relief to those who dedicated their lives to public service, ensuring that they are adequately compensated in retirement.
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