FG approves new gratuity package for civil service employee

Federal Executive Council (FEC) has approved a new exit benefit scheme that introduces a gratuity payment for retiring officers. This approval entails the introduction of a gratuity payment for retiring civil servants, following recommendations from a technical committee set up by the Office of the Head of the Civil Service of the Federation (OHCSF).

The committee collaborated with the National Pension Commission (PenCom), the Budget Office of the Federation, and the Accountant-General’s Office to establish a sustainable framework.

Under the new plan, retiring federal civil servants in treasury-funded ministries, departments, and agencies (MDAs) will receive a gratuity equal to 100% of their total annual salary.

This benefit is available to employees who have completed at least 10 years of service and enhances the existing contributory pension scheme (CPS), which has been in place for 22 years but did not previously include a gratuity option for many retirees. The new scheme will be implemented starting January 1, 2026.

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Didi Walson-Jack, the Head of the Civil Service of the Federation, referred to the approval as a significant recognition of the essential contributions made by civil servants to public service and national development. She emphasized that the initiative improves retirement benefits for officers and reinforces the federal government’s dedication to their welfare, aligning with broader efforts to motivate and create a more performance-oriented civil service.

Eno Olotu, Director of Press and Public Relations at the OHCSF, explained that the scheme is intended to enhance the welfare framework of the federal civil service, ensuring that officers with a minimum of 10 years of service retire with financial security.