The administration of Bola Ahmed Tinubu has approved a new gratuity package for employees in the federal civil service, a move aimed at strengthening the welfare and retirement benefits of government workers.
The decision was taken during the meeting of the Federal Executive Council (FEC) held on Wednesday.
According to officials, the newly approved scheme introduces a gratuity payment for retiring federal civil servants, a benefit that will complement the existing National Pension Commission (PenCom) Contributory Pension Scheme (CPS).
The approval followed recommendations by an inter-ministerial technical committee set up by the Office of the Head of the Civil Service of the Federation (OHCSF) to review retirement benefits for federal workers.
The committee worked in collaboration with key government institutions, including the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation, to develop a sustainable structure for the new policy.
Under the approved framework, retiring civil servants 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’s salary package.
The benefit will apply to officers who have served the federal government for a minimum of 10 years, and it will operate alongside the Contributory Pension Scheme, which was introduced over two decades ago but previously did not include gratuity payments for many retirees.
The new gratuity scheme is scheduled to take effect from January 1, 2026.
Reacting to the development, the Head of the Civil Service of the Federation, Didi Walson-Jack, described the approval as a recognition of the contributions of public servants to national development.
She noted that the initiative would significantly enhance the retirement package of federal workers and strengthen their confidence in the government’s commitment to improving their welfare.
“This is a profound acknowledgement of the invaluable contributions of our civil servants who have devoted their productive years to public service and national development,” she stated.
Also speaking on the development, the Director of Press and Public Relations at the OHCSF, Eno Olotu, said the scheme is designed to ensure that officers who have served the country retire with improved financial security.
According to Olotu, detailed implementation guidelines for the new gratuity package are expected to be released by the government in the coming weeks.
