NLC welcomes FG’s enhanced gratuity for retiring civil servants

The President of the Nigeria Labour Congress, Mr Joe Ajaero, has welcomed the Federal Government’s approval of an enhanced gratuity for retiring federal civil servants.

Ajaero gave the commendation in an interview with our correspondent on Tuesday in Abuja.

It would be recalled that the Federal Government recently approved a new exit benefit scheme for federal civil servants.

Under the scheme, retiring civil servants will receive gratuity equivalent to 100 per cent of their total annual emolument.

The gratuity will be paid in addition to pensions under the Contributory Pension Scheme.

The scheme takes effect from Jan. 1, 2026, and applies to workers who have served for at least 10 years.

He described the approval as a positive development that would support workers at the end of their service.

According to him, gratuity is different from pension because it is a form of appreciation to workers who have served their employers diligently over the years.

“It recognises the dedication and loyalty of civil servants throughout their careers.

“The contributory pension scheme alone may not adequately support retirees immediately after leaving service, so gratuity provides immediate financial support to start something meaningful,” he added.

Ajaero said that this also allows retirees to manage their affairs while waiting for their pension.

The labour leader said that if gratuity was stopped in the past without any law abolishing it, those who were not paid should have their entitlements settled.

“The government must ensure fairness for all retirees affected in the past,” he said.

Ajaero said that gratuity was important because it helped retirees start new ventures before relying on their pensions.

According to him, it also provides security and dignity immediately after leaving service.

He said that gratuity was separate from pension and should not be treated as part of pension benefits.

“Both should operate independently to ensure retirees are fully supported,” he added.

The NLC president added that there was no law abolishing gratuity in the civil service.

He implored the government to ensure workers who were previously denied gratuity received their entitlements.

Ajaero also called on organisations in the private sector to adopt similar gratuity arrangements for their workers.

“It would encourage a culture of gratitude and fairness across all sectors,” the NLC president said.