Union Bank of Nigeria has implemented a 40% salary increase for its workforce, effective November 1, 2024. The move, aimed at helping over 2,000 employees cope with rising living costs, is the bank’s third salary hike since its acquisition by Titan Trust Bank in 2022.
According to an internal memo obtained by TechCabal, the salary adjustment applies to all employees, including outsourced associates, and reflects Union Bank’s commitment to employee welfare. The November arrears will be paid alongside December salaries.
Details of the Adjustment
The salary increase significantly improves take-home pay for employees at various levels:
Executive trainees will now earn ₦364,000 ($215) monthly, up from ₦260,000 ($153).
Senior Banking Officers (SBOs) will see their annual gross salary rise to ₦20 million ($11,792).
With this adjustment, Union Bank’s personnel expenses are projected to rise from ₦34 billion in 2023 to ₦47.6 billion in 2024, marking a substantial investment in its workforce.
Broader Industry Trends
Union Bank’s move mirrors actions taken by other Nigerian banks in response to economic challenges.
GTBank implemented a 40% salary increase in September 2024.
Sterling Bank introduced a cost-of-living adjustment stipend in August 2024.
These measures aim to retain talent and address the impact of inflation, which reached 28% in October 2024, according to the National Bureau of Statistics. The naira’s devaluation has further strained household budgets, making salary adjustments critical for employee welfare.
Union Bank’s Commitment
“The recent adjustments to our compensation and benefits package strongly reflect Union Bank’s commitment to investing in our employees and aligning with industry standards,” the bank stated in its internal memo.
While Union Bank declined to comment publicly, the salary increase underscores its dedication to addressing the financial challenges faced by its employees.
Financial Implications
Union Bank’s personnel expenses have steadily increased over the years. The bank reported a 27% jump in staff costs from 2022 to 2023, driven by previous salary hikes and operational adjustments. This latest increase further reinforces the bank’s strategy to remain competitive while supporting its workforce.
The Bigger Picture
As inflation and currency instability continue to affect Nigeria’s economy, banks are under pressure to balance employee welfare with operational sustainability. Union Bank’s proactive approach highlights the critical role of private sector employers in navigating the country’s economic challenges.
