FEC approves new gratuity package for federal civil service employees

The Federal Executive Council (FEC) has approved a new exit benefit scheme that introduces a gratuity payment for retiring officers.

The approval, granted during FEC meeting in Abuja, follows recommendations from an inter-ministerial technical committee established 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 to create a sustainable framework.

Under the new scheme, retiring federal civil servants in treasury-funded ministries, departments, and agencies (MDAs) will receive a gratuity equivalent to 100% of their total annual emoluments (one full year’s salary package). This benefit applies to officers who have served for a minimum of 10 years and complements the existing Contributory Pension Scheme (CPS), which was introduced 22 years ago and previously operated without a gratuity component for many retirees.

The scheme takes effect from January 1, 2026.

Didi Walson-Jack, Head of the Civil Service of the Federation, described the approval as “a profound acknowledgement of the invaluable contributions of our civil servants who have devoted their productive years to public service and national development.” She added that the initiative “significantly enhances the retirement package of our officers and boosts confidence in the federal government’s commitment to their welfare,” while aligning with broader reforms for a more motivated, performance-driven, and people-centred civil service.

Eno Olotu, Director of Press and Public Relations at the OHCSF, stated: “The scheme… is designed to strengthen the welfare structure of the federal civil service and ensure that officers who have served the nation for a minimum of 10 years retire with financial security.”

Detailed implementation guidelines are expected to be issued soon.