The Department performs amongst others; the following functions:

• Examine the salary structure in the public and private sector and recommend a wage framework with reasonable features of relativity and maximum levels which align with the national economy;
• Inform the Federal Government on incipient trends in wages and propose guidelines within which increase in wages should be confirmed;
• Recommend guidelines that will ensure harmony in work compensation policies in both the public and private sectors; and
• Examine the current rate of retirement benefits and recommend an appropriate mechanism for periodic review of retirement benefits

The department is divided into two division namely:

• Salary Administration; and
• Pay Research

• Evaluate request from agencies for salary placement/review
• The Department, on request, clarifies issues relating to salaries and wages administration in the public service;
• Carry out pay research across the public and private sectors of the economy;
• Carry out salary inspection of ministries, department and agencies in the public sector of the economy
• Rendering technical services/advise to Government on industrial relating issues
• Providing Technical support to Government on negotiation with unions in the public service including negotiations on the National Minimum Wage
• Review of relevant benefits including pension
• Preparing proposals/guidelines for wage reviews in the Public Service
• Preparing drafts reports on the implementation of ILO and other conventions relating worker remuneration ratified by the country
• Sensitizes and educate the worker and the general Public on salary administration policies.