The Nigerian government, on Monday, approved the universal implementation of the Employee Compensation Act (ECA) 2010.
Minister of Labour and Employment, Chris Ngige addressed reporters after an emergency council meeting presided over by Vice President Yemi Osinbajo.
The new law, operated by the Nigeria Social Insurance Trust Fund (NSITF), replaces the old Employee Compensation Act called ‘Workmen Compensation’.
Noting that the private sector had implemented the Act, he said the public sector – federal, state and local governments – must now adopt it to protect workers.
The Act provides that the worker, who is injured, had an accident, contracted a disease or disabled or died in the course of work, should be compensated.
Ngige confirmed the directive that all staff of ministries, departments and agencies should be covered with a percentage contribution.
“It is an insurance premium, one percent of remuneration. You pay it and it insures your worker against these workplace accident injuries,” he said.
The council directed the Minister of Finance and the Budget Office to make provision for it in the annual budget as social contributions.