FEC Approves Gratuity Scheme for Retiring Federal Civil Servants
FEC Approves Gratuity Scheme for Retiring Federal Civil Servants
FEC Approves Gratuity Scheme for Retiring Federal Civil Servants
The Federal Executive Council (FEC) has approved a new exit benefit scheme that introduces gratuity payments for retiring federal civil servants.
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The decision was taken during a meeting of the council in Abuja following recommendations from an inter-ministerial technical committee set up by the Office of the Head of the Civil Service of the Federation (OHCSF). The committee worked in collaboration with the National Pension Commission (PenCom), the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to develop a sustainable framework for the initiative.
Under the newly approved scheme, retiring officers in treasury-funded Ministries, Departments, and Agencies (MDAs) will receive a gratuity equivalent to 100 percent of their total annual emoluments, representing one full year of their salary package. The benefit will apply to officers who have served for a minimum of 10 years.
The new gratuity will complement the existing Contributory Pension Scheme (CPS), which was introduced about 22 years ago and previously operated without a gratuity component for many federal retirees. The scheme is scheduled to take effect from January 1, 2026.
Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a recognition of the dedication and sacrifices of civil servants who have devoted their productive years to national service.
She noted that the initiative significantly improves the retirement package for federal workers and demonstrates the government’s commitment to their welfare, while supporting ongoing reforms aimed at building a more motivated, performance-driven, and people-centred civil service.
Also speaking, Director of Press and Public Relations in the OHCSF, Eno Olotu, said the scheme is designed to strengthen the welfare structure of the federal civil service and ensure that officers who have served the nation for at least a decade retire with improved financial security.
FEC Approves Gratuity Scheme for Retiring Federal Civil Servants
