Jubilation as Another Nigerian Bank Increases Staff Salary by 40% After GTBank
- Union Bank of Nigeria has raised employee pay by 40% to alleviate the financial burden caused by the rising cost of living
- The change will impact over 2,000 workers, including executive trainees, general managers, and outsourced colleagues
- Senior banking executives would now earn N20 million in gross income annually under the revised structure
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
To lessen the financial strain brought on by the growing cost of living, Union Bank of Nigeria has increased employee salaries by 40%.
Source: Getty Images
With effect from November 1, 2024, the change will affect more than 2,000 employees, including general managers, outsourced associates, and executive trainees.
According to an internal memo seen by TechCabal, workers would get their December 2024 pay along with their November arrears.
According to the updated structure, senior banking executives would now receive an annual gross income of N20 million, while entry-level executive trainees will now earn N364,000 per month, up from N260,000.
Recent raise amid hardship
The bank has made three wage adjustments since 2022, reaffirming its ongoing commitment to helping its employees as the economy becomes more difficult.
This is as currency devaluation and soaring inflation have had a significant influence on Nigeria's economy, putting pressure on consumer spending.
In its memo, the bank stated,
“The recent adjustments to our compensation and benefits package strongly reflect our commitment to investing in our employees and aligning with industry standards.”
In 2023, Union Bank spent N34 billion on personel expenses, a 27% increase over the previous year. The bank is expected to spend N47.6 billion on staff in 2024 as a result of this new adjustment.
The banks' objective to stay competitive, draw in talent, and keep employees can also be linked to this pay raise. For example, GTBank recently raised the salaries of all 3,300 employees, including contract workers and junior staff.
The bank also raised wages for cleaners and drivers, who now earn between N70,000 and N150,000 monthly.
Other Nigerian banks have also responded to the economic pressures, in addition to Union Bank. Other financial institutions including Sterling Bank and Guaranty Trust Bank (GTBank) have implemented comparable policies in recent months.
While Sterling Bank started giving workers a cost-of-living adjustment in August 2024, GTBank raised salaries by 40% in September of the same year.
Bank reportedly raises salaries of over 3,000 staff
Legit.ng reported that Guaranty Trust Bank, one of Nigeria’s top deposit money banks, quietly increased staff salaries by 40% in September 2024 amid the ongoing cost-of-living crisis.
Four bank employees reportedly disclosed that no prior communication before the raise. However, there were expectations among the bank's staff.
TechCabal said that one of the employees, an assistant banking officer who now earns N720,000, disclosed that the position is just one level above the entry-level in the bank’s employee structure.
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Source: Legit.ng
