Retiring State House employees are set to become some of the first beneficiaries of the Federal Government’s newly approved gratuity scheme for civil servants, according to the Presidency.
The announcement was made during a send-off ceremony organized for retiring directors and deputy directors at the State House in Abuja.
The Permanent Secretary of the State House, Temitope Fashedemi, disclosed that President Bola Tinubu had approved the reintroduction of gratuity payments for federal civil servants in addition to existing pension benefits.
He described the policy as a significant welfare intervention designed to recognize decades of service rendered by public officials.
Under the new arrangement, federal civil servants who have served for a minimum of 10 years will receive a gratuity equivalent to one year's basic salary upon retirement.
The scheme takes effect from January 1, 2026, and complements the Contributory Pension Scheme introduced in 2004, which did not include gratuity payments.
The policy was approved by the Federal Executive Council (FEC) in March 2026 following recommendations from an inter-ministerial technical committee established by the Office of the Head of the Civil Service of the Federation.
The committee worked with key government agencies, including the National Pension Commission (PenCom), the Budget Office, and the Office of the Accountant-General of the Federation, to develop an implementation framework.
Fashedemi noted that the initiative is intended to strengthen retirement welfare and provide additional financial support for public servants transitioning out of active service.
According to him, officers who dedicate several decades to national service deserve adequate recognition and support upon retirement.
The Permanent Secretary also emphasized that the policy aligns with ongoing civil service reforms aimed at improving employee welfare, motivation, and productivity.
He added that the State House has continued to institutionalize programmes that celebrate outstanding officers both during service and after retirement.
Labour unions and civil servants have largely welcomed the return of gratuity payments, describing the move as a major relief after more than two decades under a pension framework that excluded such benefits.
Stakeholders argue that gratuity provides retirees with immediate financial support while they transition into post-service life.
The reintroduction of gratuity marks one of the most significant changes to federal civil service retirement benefits since the adoption of the Contributory Pension Scheme.
Analysts believe the policy could improve confidence in public service careers and enhance the welfare of retiring workers.
As implementation begins, retiring State House officials are expected to be among the first recipients of the benefit, setting the stage for wider rollout across federal ministries, departments, and agencies.