FG Approves Implementation of Employee Compensation Act

In Nigeria, the Federal Executive Council (FEC) has approved the universal implementation of the Employee Compensation Act (ECA) 2010. Minister of Labour and Employment, Chris Ngige, disclosed this on Monday after an emergency FEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

According to the minister, the law, operated by the Nigeria Social Insurance Trust Fund (NSITF), is a replacement for the old Employee Compensation Act–called ‘Workmen Compensation’ in the olden times.

“Today, the council has approved it for universal implementation, meaning that apart from the private sector, which is already implementing, the public sector, which comprises federal, state and local governments have now to adopt this for the protection of their workers.

“The Act provides that the worker, who is injured or had an accident or contacted a disease or disabled or dies in the course of work, should be compensated, remunerated and even the family, pay something when the man is no longer there.

“So, today is a good day for the Nigerian workers because the decent work agenda that is contained in Convention 102 of the ILO has a major branch on what they call workers’ protection in the course of work.’’

He said there was a directive that all workers in the ministries, departments and agencies of the Federal Government should be covered with a percentage contribution.

“It is an insurance premium, one per cent of remuneration. You pay it and it insures your worker against these workplace accident injuries.

“That is what the council passed today and directed the Minister of Finance and the Budget Office of the Federation to make provision for it in the annual budget as social contributions.

“Under the subject of social contributions in our annual appropriation, as of today, you only have two items there; number one is the Pension Contribution of employers.

“Second one is the Health Insurance Scheme by the employer,’’ he said.