The Federal Executive Council (FEC) has approved a new gratuity package for employees in the federal civil service as part of efforts to strengthen the welfare of retiring officers.
The approval was granted 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 new exit benefit scheme.
According to the statement by the OHCSF on Thursday, the gratuity scheme will take effect from January 1, 2026, and is designed to strengthen the welfare framework for federal civil servants while providing additional financial security at retirement.
Under the arrangement, retiring federal 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 applies to officers who have served for a minimum of 10 years and will complement the existing Contributory Pension Scheme, which was introduced 22 years ago but did not include gratuity payments for many retirees.
The Head of the Civil Service of the Federation, Didi Wilson-Jack, described the approval as a significant recognition of the contributions of civil servants to national development.
She said the initiative would enhance the retirement package of public officers and boost confidence in the federal government’s commitment to their welfare, while supporting broader reforms aimed at building a motivated and performance-driven civil service.
Also speaking, the Director of Press and Public Relations at the OHCSF, Eno Olotu, said the scheme was designed to strengthen the welfare structure of the federal civil service and ensure that officers who have served the nation for at least 10 years retire with financial security.
He added that detailed implementation guidelines for the new gratuity scheme would be issued in due course.
