EMPLOYEES HOUSING SCHEMES (SPECIAL PROVISIONS) ACT

An Act provides special provisions for employee housing schemes by allowing employers to deduct mortgage repayments from salaries. It targets employers operating housing schemes and employees living in employer-provided housing. This facilitates affordable home ownership for workers.

What Is This Policy?

An Act providing special provisions for employee housing schemes, enabling employers to deduct mortgage repayments from employee salaries and protecting employees' rights in employer-facilitated housing.

Who Does It Target?

Employers operating staff housing schemes Employees living in employer-provided or employer-financed housing Federal Mortgage Bank of Nigeria Courts resolving housing-related employment disputes

What Does It Aim to Achieve?

Facilitate affordable home ownership for Nigerian workers through employer-sponsored housing schemes, providing a legal framework for salary deductions for housing repayments.

Key Features

Salary Deduction Authority: Employers may deduct housing loan repayments from employee salaries with the employee's written consent. Employee Protections: Deductions are capped at a percentage of salary to ensure employees retain adequate take-home pay. Scheme Rules: Prescribes conditions governing employee housing scheme rules and administration. Dispute Resolution: Provides for resolution of housing scheme disputes through labour courts.

Current Status

Rollout Stage: Active Coverage: Employers with housing schemes nationwide Beneficiaries: Employees in housing schemes; employers retaining staff Funding: Employer and employee contributions

How to Access

Employees must give written consent to salary deductions for housing Scheme rules must be communicated to employees in writing Disputes filed with Labour courts Application method: Participate through employer housing scheme where available.

Important Terms

Deductions cannot reduce take-home pay below the minimum wage Employees cannot be dismissed solely because they have taken housing scheme loans Housing provided under a scheme becomes the employee's property upon full repayment

Official Resources

Website: https://www.labour.gov.ng Contact: Federal Ministry of Labour and Employment

Legal Framework

Enacted under the legislative powers of the National Assembly as the Employees Housing Schemes (Special Provisions) Act. Operates alongside the Labour Act (Cap L1 LFN 2004), the Land Use Act 1978, the National Housing Policy, and the Federal Mortgage Bank of Nigeria Act. Aligns with the National Housing Fund Act and ILO Recommendation No. 115 on Workers Housing.