GT Bank has announced an increase in salaries for its junior and contract staff in response to the rising cost of living. The tier 1 bank has doubled the salaries of its junior staff members to align with the increasing inflation rate.
Confirmation of the salary increase came from affected staff members who spoke to Nairametrics, and the news quickly spread on social media as friends of the bank’s employees reported the salary adjustments.
Reviewing GT Bank’s 2022 financial statements reveals that approximately 774 staff members earn annual salaries ranging from N770k to N1.4 million, making them the lowest-earning employees of the bank. Another 340 staff members earn above N1.4 million but less than N2.05 million annually, while 741 employees earn between N2.1 million and N3 million per year.
GT Bank Impact of Fuel Subsidy Removal
The recent removal of fuel subsidies in Nigeria has had a widespread impact on individuals across the country, including employees who now face increased transportation expenses for their daily commutes.
Inflation has also led to higher fuel prices, causing public transportation providers such as buses, tricycles (keke napep), and motorcycles to raise their fares accordingly. This situation has particularly affected workers in the private sector who rely on public transportation.
With the rising cost of transportation, many employees are now forced to allocate a significant portion of their salaries solely for commuting expenses, leaving little for other essential needs like food and rent.
GT Bank Salary Adjustment
Starting from July 2023, GT Bank plans to implement a 100% increase in the salaries of junior staff members, particularly those in outsourced roles such as security staff, cleaners, and drivers.
Cleaners will now earn between N70,000 and N80,000, while drivers will receive between N140,000 and N150,000. However, it is important to note that the majority of these employees fall under outsourced arrangements with third-party service providers.
There are reports that other banks may have also increased the salaries of junior staff, while some are reviewing their payroll costs. Additionally, Fidelity Bank has commissioned more staff buses to alleviate commuting burdens for its employees, and Access Bank is working on getting its 40-staff buses back on the road.
Labor Calls for Wage Increases
The Nigeria Labour Congress (NLC) has proposed a wage award proposal to the Federal Government to alleviate the impact of subsidy removal on Nigerian citizens.
While the government argues that removing fuel subsidies will lead to cost savings, reduced corruption, and increased investment in the oil sector, many citizens have expressed doubts about the benefits and raised concerns about the adverse effects on their lives.
As Nigerians adapt to these changes, stakeholders must assess the consequences and explore measures to mitigate the adverse effects of subsidy removal, especially on employees’ financial stability and overall welfare.
Conclusion
The removal of fuel subsidies represents a significant change in Nigeria’s economic policy, aiming to address fiscal challenges and promote market-based pricing. However, the effects on inflation, transportation costs, and individuals’ well-being should not be underestimated.
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