FEC Approves Full-Year Salary as Gratuity for Retiring Federal Workers

The Federal Executive Council (FEC) has approved an Exit Benefit Scheme granting retiring federal civil servants a gratuity equivalent to 100% of their annual salary. The scheme takes effect on January 1, 2026, and targets employees with at least 10 years of service, providing enhanced financial security at retirement.

Eno Olotu, Director of Public Relations in the Office of the Head of the Civil Service of the Federation, confirmed the approval in an official statement. The decision follows extensive consultations and technical recommendations from an Inter-Ministerial Technical Committee, which collaborated with the National Pension Commission, the Budget Office of the Federation, and the Office of the Accountant-General of the Federation to design a sustainable framework for the scheme.

The Exit Benefit Scheme complements the existing Contributory Pension Scheme, offering an additional financial cushion for staff in treasury-funded ministries, extra-ministerial departments, and government agencies.

Didi Walson-Jack, Head of the Civil Service of the Federation, described the approval as a significant step in recognizing the dedication of civil servants. She emphasized that the scheme strengthens retirement packages, reflects the government’s commitment to employee welfare, and supports broader reforms aimed at creating a more motivated and efficient civil service. Detailed implementation guidelines are expected to be released shortly.

This move marks the return of gratuity payments to federal civil servants, more than two decades after the introduction of the Contributory Pension Scheme, highlighting the government’s renewed focus on improving welfare and retirement benefits for public sector employees.