Analysing the Impact of Minimum Wage Laws on Low-Income Workers in Selected Government Ministries, Agencies, Departments and Parastatals in Benue State

Abstract

This study analyzed the Impact of Minimum Wage Laws on Low-Income Workers in Selected Government Ministries, Agencies, Departments, and Parastatals in Benue State. It specifically examined the impact of the National Minimum Wage Act on Minority Workers as well as the impact of the Labour Act on Rural Workers in selected government MDAs in Benue State. The target population is 2,803 and a sample size of 338 was derived from Krejcie and Morgan method. The hypotheses were tested with simple linear regression analysis on Statistical Packages for Social Science (SPSS) at a 5 percent significant level. Hypothesis one revealed a statistically significant negative impact of the National Minimum Wage Act on minority workers in selected government MDAs in Benue State. Hypothesis two showed that there is a strong negative impact of the Labour Act on Rural Workers in selected government MDAs in Benue State. The study concluded that there is a statistically significant negative impact of impact of minimum wage laws on low-income workers in selected government ministries, agencies, departments and parastatals in Benue State. It was recommended that policymakers need to review and adjust the National Minimum Wage Act to ensure fair compensation for minority workers in government MDAs by conducting wage audits and aligning wages with the local cost of living. Also, the government needs to revise the labour to address the unique challenges of rural workers in government MDAs by implementing region-specific policies and stronger enforcement mechanisms.