An increase in staff salaries by 40% has been implemented by Union Bank of Nigeria to assist its over 2,000 employees in managing the escalating cost of living. The salary adjustment was effective from November 1, 2024, with employees set to receive the arrears for November along with their December 2024 salary, as per an internal memo.
The salary hike is applicable to all staff categories, from executive trainees to general managers, and outsourced associates, as communicated in the internal memo. For instance, executive trainees who previously earned ₦260,000 ($153) per month will now receive ₦364,000 ($215) per month.
Notably, a senior banking officer (SBO) will now have an annual gross salary of ₦20 million ($11,792), showing a significant increase. This marks the third salary adjustment made by Union Bank since 2022.
Union Bank’s decision to raise salaries is part of a larger trend among Nigerian commercial banks in response to the country’s economic conditions. Other banks like GTBank and Sterling Bank have also made similar moves to address the impact of inflation and the devaluation of the naira on employee earnings and purchasing power.
These adjustments aim to ensure that staff salaries remain competitive amidst economic challenges. Union Bank’s commitment to investing in its employees is reflected in the recent compensation and benefits package revisions.
In 2023, Union Bank spent ₦34 billion on personnel expenses, representing a 27% increase from the previous year. With the 40% salary increase, the bank is projected to spend ₦47.6 billion on staff expenses in the upcoming year.
*Exchange rate used: $1 = ₦1,696
Editor’s note: This article has been updated to include that Union Bank declined to comment.