FEC approves new gratuity plan for federal workers

The Federal Executive Council (FEC) has approved a new exit benefit scheme that provides federal civil servants with pension benefits equivalent to 100 percent of their total annual salary.

This was disclosed by the Office of the Chief Civil Service Officer of the Federation in a statement by Mrs Eno Olotu, Director of Press and Public Relations, on Thursday in Abuja.

Olotu said the scheme, which comes into effect from January 2026, is designed to strengthen the welfare structure of federal civil servants and ensure that officers who have served the country for a minimum of 10 years retire with financial security.

He explained that the approval followed recommendations from an inter-ministerial technical committee formed by the office.

According to him, the committee is working with the National Pension Commission, the Federation Budget Office and the Office of the Accountant General of the Federation to develop a sustainable framework for the scheme.

The new exit allowance, he added, complements the existing Contributory Pension Scheme and aims to strengthen retirement income security for federal civil servants in ministries, departments and extra-ministerial agencies funded by the treasury.

The Federation’s Head of Civil Service, Mrs Didi Walson-Jack, praised the council for approving the scheme.

He described this as a bold move that clearly shows that President Bola Tinubu’s administration recognizes the dedication, sacrifice and professionalism of federal civil servants.

“This approval is a deep recognition of the invaluable contribution of our civil servants who have dedicated their productive years to public service and national development.

“The exit benefit scheme significantly improves the retirement packages of our officers and increases confidence in the Federal Government’s commitment to their welfare,” he said.

Walson-Jack also said that this initiative is in line with ongoing reforms aimed at building a more motivated, performance-oriented and people-centred civil service.

He added that detailed implementation guidelines would be issued in due course.

The reintroduction of gratuities for federal civil servants comes 22 years after the introduction of the Contributory Pension Scheme.