AN ASSESSMENT OF SALARIES REFORM ACT AND ITS IMPLEMENTATION IN NIGERIAN PUBLIC SECTOR

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AN ASSESSMENT OF SALARIES REFORM ACT AND ITS IMPLEMENTATION IN NIGERIAN PUBLIC SECTOR (A CASE STUDY OF RIVERS STATE MINISTRY OF WORKS)

 

ABSTRACT

            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 simple percentage.

            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 industry.

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.

TABLE OF CONTENT

Title page

Certification

Declaration

Dedication

Acknowledgement

Abstract

Table of content

Chapter one: Introduction

1.0 Introduction

1.1statement of problem

1.2 Objectives of the study

1.3 Research questions

1.4 Research Hypothesis

1.5 Significance of the study

1.6 Scope of study

1.7 Limitation of the study

1.8 Definition of Terms

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.0 Introduction

2.1 Concept of Salaries Reform Act and its implementation in Nigerian public sector

2.1.1 The implementation of the 2004 salaries Reform Act.

2.2 Classification of Salaries in Nigeria.

2.3 Types of salaries Reform Act

2.4 Key points in the 2004 salaries scheme

2.5 The Implementation of Salaries Reform Act 2014 and its salient features

2.6 Objectives of the new salaries scheme

2.7 The functions of Salaries Reform scheme

2.8 Challenges of the new salaries Reform Scheme

2.9 Comparing between the old and new salaries scheme

2.10 Impacts of 2014 salaries Reforms on the retiree’s wellbeing

2.11 Importance/benefits of salaries Reform Scheme

2.12 Factors attributable to poor salaries management

2.13 Strategies for effective salaries Administration.

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

3.0 Introduction

3.1 Research Design

3.2 Area for the study

3.3 Population of the study

3.4 Sample and sampling technique

3.5 Instrumentation

3.6 Plan for data analysis

3.7 Problems of data collection

3.8 Simple Percentage Method

3.9 Data presentation and Analysis Technique

3.10 Method of Data Analysis

 

CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION OF RESULT

4.0Intriduction

4.1 Presentation and Analysis of Data

4.2 Discussions of findings

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION.

5.0Intriduction

5.1Summary

5.2 Conclusion

5.3 Recommendation

References

Appendices 

CHAPTER ONE

  • INTRODUCTION

Salaries 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.

The 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 day.

Salaries 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.

Nigerian salariesers 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:

  1. The dependency of salaries scheme and the erratic budgetary allocation to the federal government.
  2. The untimely release of salaries scheme.
  • The untimely release of salaries funds which affects the payment of salaries benefit and other retirement benefits
  1. A huge accumulation of salaries liabilities, among several others.

The 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.

Finally, 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 salaries scheme.

  • STSATEMENT OF THE PROBLEM

Several 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.

First, 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.

In 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 efficient.

It 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 implementation.

  

1.2OBJECTIVE OF THE STUDY

  1. To examine the impact of salaries reform and implementation on the welfare of retirees in the ministry of works Rivers State.

To identify the benefits/importance of salaries reform act on salariesers of ministry of

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AN ASSESSMENT OF SALARIES REFORM ACT AND ITS IMPLEMENTATION IN NIGERIAN PUBLIC SECTOR

 

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