The new minimum wage, explained for small employers
What changed, who it covers, and how to plan the cost without cutting jobs or breaking the law.
What changed
The national minimum wage sets the lowest monthly pay an employer covered by the law may pay a full-time worker. When it rises, the change ripples up: staff just above the old minimum expect a matching increase, and supervisors expect their gap to be kept.
Who it covers
The law applies to most employers, with some exemptions for very small establishments and certain categories of worker. We check which rules apply to each client in writing, because the details matter and they change.
Planning the cost
Start with a list of everyone within N30,000 of the new minimum. Cost the minimum rise for them, then decide how much of the ripple you will pass up the scale. Our calculator on page C1 helps you see the full employer cost, including pension and NSITF on the new figures.
Most penalties we see were avoidable with a calendar and one named person.
Talk before you pay
Staff take pay changes better when they hear about them first from their manager. A short meeting, a letter and a clear date beat a surprise on a payslip.
Avoid the shortcuts
Reclassifying staff as casual, delaying pay or cutting hours to avoid the minimum tends to cost more later in disputes and penalties. If the business cannot afford the rise, speak to an adviser about phasing and productivity first.
This article is general guidance for employers and not legal advice. Figures are example rates and estimates for planning only. Statutory rates change; we confirm the current rules in writing before you sign.