BREAKING: FEC okays 100% annual salary as gratuity for retiring federal workers

The Federal Executive Council has approved the implementation of a transformative Exit Benefit Scheme that grants retiring Federal Civil Servants a gratuity equal to 100 per cent of their total annual emolument.

Effective from 1 January 2026, the scheme marks a major milestone in the Federal Government’s commitment to strengthening the welfare architecture of the Civil Service and ensuring that officers who have devoted a minimum of 10 years of service to the nation retire with dignity and financial security.

This was contained in a statement signed on Thursday by the Director of Public Relations in the Office of the Head of the Civil Service of the Federation, Eno Olotu.

The approval followed extensive deliberations and technical input from an Inter-Ministerial Technical Committee constituted by the Office of the Head of the Civil Service of the Federation.

The committee worked closely 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 and impactful implementation framework.

The Exit Benefit Scheme is a strategic enhancement of the existing Contributory Pension Scheme framework. It is specifically designed to provide a substantial financial safety net at retirement, thereby strengthening long-term income security for Federal Civil Servants in treasury-funded ministries, extra-ministerial departments, and agencies.

The Head of the Civil Service of the Federation, Didi Walson-Jack, commended the Federal Executive Council for what she described as a watershed approval.

She said the decision clearly demonstrates that President Bola Ahmed Tinubu’s administration recognises the dedication, sacrifice, and professionalism of Federal Civil Servants.

“This approval is a profound acknowledgement of the invaluable contributions of our Civil Servants who have devoted their productive years to public service and national development.

“The Exit Benefit Scheme significantly enhances the retirement package of our officers and boosts confidence in the Federal Government’s commitment to their welfare,” she stated.

Walson-Jack added that the initiative aligns with the ongoing reform agenda aimed at building a more motivated, performance-driven, and people-centred Civil Service. She assured that comprehensive implementation guidelines would be communicated in due course.

The payment of gratuity to Federal Civil Servants comes 22 years after the introduction of the Contributory Pension Scheme.

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The approval by the Federal Executive Council underscores the Federal Government’s commitment to policies that promote improved welfare while institutionalising reforms that secure the future of the Federal Civil Service.