The Federal Government has approved a monthly pension increase of N32,000 for retirees under the defined benefits scheme, following the consequential salary adjustments resulting from the newly implemented minimum wage.
This development was revealed in a memo from the National Salaries, Wages, and Income Commission (NSIWC), dated September 27, 2024, and signed by the Commission’s Chairman, Ekpo Nta. The adjustment applies to retirees from sectors including healthcare, education, the police, paramilitary services, and the armed forces.
The memo highlights that the pension increment is a direct outcome of the National Minimum Wage (Amendment) Act of 2024, which necessitated changes to salary structures in the federal public service. The adjustment applies to pensioners who retired under specific salary schemes, including:
- Consolidated Public Service Salary Structure
- Consolidated Universities Academic Salary Structure
- Consolidated Health Salary Structure
- Consolidated Medical Salary Structure
- Consolidated Armed Forces Salary Structure
- Consolidated Para-Military Salary Structure
- Consolidated Police Salary Structure
- Other relevant salary structures for public sector employees.
The new pension increase takes effect retroactively from July 29, 2024. The NSIWC also advised any government agencies not covered by these specific salary structures to apply to the commission for a determination of appropriate pension increases for their retirees, as stipulated by the Constitution and relevant laws.
This increase follows the signing of the new minimum wage law by President Bola Tinubu on July 29, 2024, after discussions with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC). The new minimum wage is set to benefit both active civil servants and retirees under the defined benefits scheme.
The memo also clarified that the decision to implement the pension increase from July 29, 2024, aligns with the date the minimum wage amendment was signed into law.
