This project works was examined from all its ramification, what could be the possible effect of salary increase and fringe benefits among Nigerian workers.

It is believed that when salaries and fringe benefits are increased, the aim is to alleviate the sufferings of workers in regards to increasing their purchasing power and meeting the high cost of living. But, the consequence which will come quickly to mind is that many job will be lost and very little created.

Employers will pay higher wages, but will do so at the cost of retraction in their labour force. Those who have been desperate for job will sink further into desperation and more would join them through retrenchment.

In analyzing the affect on workers, the researchers carried out a researchwork at the Nigeria Railway Cooperation Enugu, where opinion of some workers are sampled. By so doing, questionnaire and personal interview were used. We equally examined the more dynamic aspect of wage and salary administration, showing the emergency of wage employment, salary structure, the responsibility for wage and salary and the method of fixed salaries and fringe benefits.

The project also highlight the method for salary increase by workers and the probable side effects such as inflation, increase in pric e of commodities etc.

Recommendations as to how the government could come to the aid of workers in minimizing the increase in prices of goods and services when salaries are increased are also discussed.

TABLE OF CONTENTS

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of contents

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

1.2 Statement of the study

1.3 Purpose of the study

1.4 Scope and limitation of the study

1.5 Significance of the study

1.6 Research questions

1.7 Definition of terms

1.8 Plans of the study

References

CHAPTER TWO

2.0 Literature review

2.1 Review of related literature/wage determination

2.2 Methods of fixing wages

2.3 System of wage payment

2.4 Essentiality of wage and salary administration

2.5 Benefits of incentives and fringe benefits

2.6 Research design

2.7 Sources of data

2.8 Population of the study

2.9 Sample size determination

2.10 Constraints to data collection

2.11 Summary

References

CHAPTER THREE

3.0 Conclusion

3.1 Analysis and interpretation of findings

3.2 Research findings

3.3 Recommendation

3.4 Conclusions

References

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

In any establishment either private or public, the impact of salary increase and fringe benefits cannot be over-emphasized. To Nigeria Railway Corporation Enugu, satisfaction of the public and standard of living have been their major concern.

The main objective has been the development and utilization of local raw material (coal) and mobilization of fund for the purpose of satisfaction of the Nigerians.

In the bid to actualize this, the corporation finds it difficult and almost impossible to pay its workers the exact salary and pension at the appropriate time. This as a result, leads to inefficiency since the workers are not motivated to carry out their functions effectively. Facilities provided by the government are not being used and when it is used, they are not maintained properly, and the situation hinders development process.

The whole society is affected negatively by the poor performance of the railway corporation. Businesses which involves bulky goods are slowed down because of the inadequate facilities used by the corporation in their operation. This as a result may lead to scarcity of some important goods.

The carriage of bulky goods by trailer is now move preferable than the use of train, since the railway corporation is inefficient. Goods that are supposed to be carried by trains are now being carried by vehicles, which thereby creates obstruction in our roads.