The factors which influence the level of wages in my country, Nigeria are:
(i) Productivity: The higher the level of production, the higher the level of wages and salary and the lower the level of production, the lower the level of wages.
(ii) Inflation: This can induce employees to demand for increase in the level of wages.
(iii) Rising incomes in key sectors of the economy (e.g. the public sector) can lead to a general increase in wage limits. For example the Federal Government raised the minimum salary of federal workers to N7,500 and all other employers too have to adjust wages and salaries upwards.
(iv) Demand for and supply of labour: If the aggregate demand for labour is low, there is the tendency for the level of wages to fall but if the aggregate demand for labour is high, the level of wages would rise.
(v) Effectiveness of Trade Unions: Activities of trade unions through their bargaining power can lead to increased wage level.
(vi) Technical changes such as improved and more effective process of production will lead to increase in productivity, and ultimately, higher wage rates.
(vii)The quality of labour in terms of skills or training also determines the level of wages or salary attracted. Highly educated and professional workers attract higher level of wages than unskilled workers.
(viii)Condition of the economy: When the economy is buoyant, workers enjoy a high level of wages but when the economy is in recession, wages and salary levels fall.