This study examines critically assessment of salaries
reform act and its implementation in Nigerian public sector, using ministry of
works Rivers state as a case study. The urgent need of reform necessitated fact
due to the fact that public sector organization at both the federal, state and
local government levels have woefully failed to meet their salaries liabilities
thereby groaning under the heavy burden of paying the retirement benefits of
retirees. The scourge of “ghost salariesers, has further aggravated the
lingering salaries crisis. Strict regulation of the activities of salaries fund
Administrators and Nation salaries commission is to be established and charge
with the responsibility for the regulation, supervision and effective
administration of all salaries matters in Nigeria. The researcher used primary
and secondary methods of data collection to gather the needed data. The data
obtained through questionnaires were presented in tables and analyzed using the
The findings have also shown that factors which
militate against successful salaries reform act and its implementation I
Nigeria public sector: knowledge gap and general misconceptions, widening the
coverage in the informed and private sector, many of the public sectors are not
yet to buy the idea, securing system widebuy-inand initial reluctance form
employees for register with PFAs and capacity building in the new salaries
The study recommends that workers should invest in
fixed income. The Nigeria government should intensify effort to ensure
financial safety net for older persons in general; through social salaries of
foxed stipends for individual above the age of 65 years.
CHAPTER ONE: INTRODUCTION
Objectives of the study
Significance of the study
Scope of study
Limitation of the study
Definition of Terms
CHAPTER TWO: REVIEW OF
Concept of Salaries Reform Act and its implementation in Nigerian public sector
The implementation of the 2004 salaries Reform Act.
Classification of Salaries in Nigeria.
Types of salaries Reform Act
Key points in the 2004 salaries scheme
The Implementation of Salaries Reform Act 2014 and its salient features
Objectives of the new salaries scheme
The functions of Salaries Reform scheme
Challenges of the new salaries Reform Scheme
Comparing between the old and new salaries scheme
Impacts of 2014 salaries Reforms on the retiree’s wellbeing
Importance/benefits of salaries Reform Scheme
Factors attributable to poor salaries management
Strategies for effective salaries Administration.
CHAPTER THREE: RESEARCH
DESIGN AND METHODOLOGY
Area for the study
Population of the study
Sample and sampling technique
Plan for data analysis
Problems of data collection
Simple Percentage Method
Data presentation and Analysis Technique
Method of Data Analysis
CHAPTER FOUR: DATA
ANALYSIS AND INTERPRETATION OF RESULT
Presentation and Analysis of Data
Discussions of findings
CHAPTER FIVE: SUMMARY,
CONCLUSION AND RECOMMENDATION.
BACKGROUND TO THE STUDY
as a form of social security against old-aged poverty and other uncertainties
have great interest virtually everywhere in the world, both in developed and developing
countries, in recent times. Salaries programs especially those that are
publicly financed and administered, have become an issue of concern to
economists, policy makers and the general public for effective implementation.
This is not only because such programs are central to the well-being of the
salariesers and the elderly, but also, the majority of salaries programs are
not actuarially balanced (that is, they are not financially stable), and as
such, they are run at deficits, thus making the present values of their future
liabilities to be enormous.
present civilian administration extended its form programs to the
administration of salariess in the public service. The reform holds an overall
objective of reorganizing the salaries scheme and the various institutions
charged with the administration of salaries in Nigeria. The reform overhauled
the entire machinery of the salaries system through a holistic redefinition of
its essence, as a mechanism of participatory savings for the proverbial rainy
scheme is a transfer programs that serves as a channel for redistributing
income to the elderly or retirees, after a stipulated number of service years.
A salaries is usually a regular payment made by the government or private
companies or organizations to their retirees, as a form of social security
against old-aged risks and uncertainties. In addition, salaries
scheme/programme are also used to promote a saving culture among current
employees, and this stimulates saving.
salary earners are suffering badly from the stings of the problem of public
salaries scheme, which was largely governed by salaries decree No.102 of 1979.
It has features persistent problems in recent times, especially in civilian
regime. Some of the problems are:
The dependency of salaries scheme and the
erratic budgetary allocation to the federal government.
The untimely release of salaries scheme.
The untimely release of salaries funds
which affects the payment of salaries benefit
and other retirement benefits
A huge accumulation of salaries
liabilities, among several others.
present salaries reform, repeated the previous salaries Act No.102(cap 346) of
1979. It replaced it with salaries reform Act 2004 , as amended in 2014 which
gives legal backing to the reform specifically by sec,11(5) of salaries reform
Act 2004,as amended in 2014 employers are required to deduct from source the monthly contributions
of their employees and remit same together with their position, directly to the
account designed by salaries fund administration(PFA). Remittance of work must
be made within seven (7) working days from the date of payment of salary of
employees. Failure to comply with the requirement, constitute an offence under
sec.11 (7) and 89 of the salaries reform Act 2004 as amended 2014.
a greater importance has been given to salaries and gratuity by employers
because of the belief that if employees future needs are guaranteed, their
fears ameliorated and properly taken care of, they will be more motivated to contribute
positively to organizations output. Similarly various government organizations
as well as labor union have emphasized the need for sound, good and workable
1.1 STATEMENT OF THE PROBLEM
years before salaries reform, most salaries scheme in the public sector has
been under funded, owing to in adequate budgetary allocations. Budget releases
which seldom came on scheme where far short of due benefits. This situation has
resulted to unprecedented and unsustainable outstanding salaries deficits
estimated at over N2trillion before the commencement of PRA in 2004.
comes the layoffs then pay cuts finally a delay in the payment of benefits due
to poor salaries policy formulation and implementation, incorrect record
keeping and inadequate accountability of public funds. The non-implementation
of budgeted income to salariesers delay in payment and denial of salaries’s
accrued to salariesers leading to salariesers protesting over nonpayment of
salaries and non-compliance with ethics of public financial management.
Nigeria, to collect retirement benefit became problematic and a source of
hardship to retirees. The Nigerian salaries system had been plagued by week and
restrictive investment practices, under funding and mis-management in addition
to poor corporate governance. These problems led to the institutionalization of
salaries reform in 2004 to make salaries payment less burdensome and more
is on this background that this study sought to investigate how the ministry of
works Rivers states addressees salaries reforms act vis-à-vis its
OBJECTIVE OF THE STUDY
examine the impact of salaries reform and implementation on the welfare of
retirees in the ministry of works Rivers State.
identify the benefits/importance of salaries reform act on salariesers of
ministry of works Rivers State.
access the strategies for efficient salaries scheme in Nigeria with particular
reference to ministry of works Porthacourt.
examines challenges that are affecting effective salaries reform and
implementation in the ministry.
o recommend ways of implementing salaries reform scheme in ministry of works
1.3 RESEARCH QUESTIONS
i. What are the impacts of salaries reform and
its implementation on the welfare of retirees in ministry of works Rivers
are the benefits of salaries reform act on salariesers of the ministry of works
are the strategies for efficient salaries scheme in Nigeria with particular
reference to ministry of works Rivers State.?
iv. What are the challenges that are affecting effective salaries reform and
can salaries scheme be implemented in the ministry of works, Rivers State?
1.4 RESEARCH HYPOTHESIS
reform and implantation has no impact on the welfare of retirees in the
ministry of works Rivers State.
reform and implementation has impact on the welfare of retirees in ministry of
works Rivers State.
salaries reform act has no benefit on
retirees in the ministry of work. Rivers State.
salaries reform has benefit on retirees
in the ministry of works Rivers State.
scheme has no effective strategies for efficient salaries system in Nigeria
with particular reference to ministry of works Rivers State.
scheme has effective strategies for efficient salaries system in Nigeria with
particular reference to ministry of works Rivers State.
salaries reform and implementation has
no challenge that is affecting the system.
salaries reform and implementation has
challenges that are affecting the system.
OF THE STUDY:
this research, the significance of the study is to bring together the various
ways and facts as regards to the subject matter, Assessment of salaries reform
Act and its implementation in Nigerian public sec tor
is believed that the outcome of this research work will be of interest to
Government, individuals and to the corporate organization.
research work will provide them with vital information regarding challenges
facing effective salaries act and its implementation in Nigeria public sector.
The organization can utilize its study to make amendments or control a number
of lapses that may be affecting the effectiveness of salaries reform act and
its implementation in Nigerian public sector, in terms of untimely payment,
lack of efficient implementation and lack of efficient record keeping for
will also highlight the benefits of salaries reform act and its implementation
in Nigerian public sector to increase the status of the public sectors.
research work will also serve as a vital material to those who may want to
carry out further research work in this regard.
1.6 SCOPE OF THE STUDY
research focuses on Salaries reform Act and its implementation in Nigerian
public sector which was limited to ministry of works Rivers State.
1.7 LIMITATION OF THE STUDY
research was constrained by some factors like lack of fund which delayed the
realization of the study, other limitations are:
of co-operation: many of the respondents are usually aggressive to relay the
issues that borders co-operation among the respondents border.
factor: shortage of relevant material for literature review posed a great difficulty.
to retrieve all questioners forms for good representative used for anticipation
study equally limited to the information gathered from primary and secondary
1. GRATUITY: This
is a lump sum of money given to an employee on retirement from the public
service. It could as well be in kindness or other monetary benefits.
This is the realization of an application, or execution of a plan, idea, model,
design, specification, standard or policy. It is also the process of putting
something into operation.
3. LUMP SUM:
This is a single payment for a number of separate items, money paid in full
rather than in several smaller amounts.
This is a periodic payment made by the employer to the retired employees, in
consideration for his/her past service in the organization. It is the 30% of
terminal salary, paid on monthly basis. It is a fixed sum paid regularly to a
person, typically given retirement from service.
this is the general scarcity or death, or the state of one who lacks a certain
amount of material possession or money .it is also seen as the quantity or
state of being poor.
This is someone who has retired from active working life.
This is systematic plan of future action.
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