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 research work 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 price 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.