The Federal Executive Council (FEC) has approved a new gratuity package for retiring federal civil servants. Marking a significant enhancement to their exit benefits.
This decision was made during a recent FEC meeting in Abuja, based on recommendations from an inter-ministerial technical committee. The committee, led by the Office of the Head of the Civil Service of the Federation (OHCSF). Collaborated with the National Pension Commission (PenCom). The Budget Office of the Federation, and the Office of the Accountant-General to develop a sustainable framework for the scheme.
Under the new arrangement, retiring civil servants in treasury-funded ministries, departments. And agencies (MDAs) will receive a gratuity package equal to 100% of their total annual emoluments—essentially one full year’s salary. This benefit is available to employees who have served for at least 10 years. And complements the existing Contributory Pension Scheme (CPS), which has been in place for 22 years but lacked a gratuity component for many retirees.
The gratuity package scheme will officially take effect on January 1, 2026.
Didi Walson-Jack, Head of the Civil Service of the Federation. Hailed the approval as “a profound recognition of the invaluable contributions of our civil servants. Who have dedicated their productive years to public service and national development.” She emphasized that the initiative “significantly improves the retirement package for our officers. Boosts confidence in the federal government’s commitment to their welfare, and aligns with broader reforms. Aimed at creating a amotivated, performance-driven, and people-focused civil service.”
Eno Olotu, Director of Press and Public Relations at the OHCSF, added: “This scheme strengthens the welfare structure of the federal civil service. Ensuring that officers who have served the nation for at least 10 years retire with financial security.”
Detailed implementation guidelines for the scheme will be released soon.
