Fuel subsidy: FG begins paying workers 40% salary increase

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Photo: President Buhari signing off with fresh welfare package for workers.

Fuel subsidy: FG begins paying workers 40% salary increase

The Federal Government has commenced the payment of 40 per cent increase in federal civil servants’ allowances in April ahead of the planned removal of fuel subsidy in June.

It was gathered that some workers started receiving their credit alerts on Saturday, and the arrears came in alongside their April salaries.

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President Muhammadu Buhari had earlier given his final assent for the disbursement of the payment, which now comes about two months before the proposed June date of the petrol subsidy removal.

It would be recalled that last year, the President affirmed that the costly petrol subsidy would end in June, 2023.

Earlier in March, the Minister of Labour and Employment, Chris Ngige, disclosed that the Federal Government had approved a pay rise for civil servants in the country.

Ngige added that the increment had been included in the 2023 budget, noting that it would take effect from January 1, 2023.

According to him, it is a peculiar allowance for civil servants  to cushion the effects of rising inflation, the rising cost of living, hikes in transportation fare, housing and electricity tariffs on them.

Also speaking on the issue, Oladele Oshundun, Director of Press and Public Relations, Ministry of Labour and Employment, explained that pay increase was basically an adjustment in workers’ consequential allowances.

Consequential allowances 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 is 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,” Osundun added.

The National Vice President of the Trade Union Congress, Tommy Etim, had earlier in an interview explained that what the government was planning to do was an increase in “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.  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.

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