Abuja, Nigeria
The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has welcomed the Federal Government’s approval of an enhanced gratuity scheme for retiring federal civil servants.
Ajaero gave the commendation on Tuesday in Abuja during an interview with the News Agency of Nigeria (NAN) and monitored by AfrikTimes, described the development as a positive step toward supporting workers at the end of their service.
The Federal Government recently approved a new exit benefit scheme under which retiring civil servants will receive gratuity equivalent to 100 per cent of their total annual emolument, in addition to pensions under the Contributory Pension Scheme.
The scheme is scheduled to take effect from January 1, 2026, and will apply to civil servants who have served for at least 10 years. According to Ajaero, gratuity is different from pension because it serves as a form of appreciation for workers who have served their employers diligently over the years.
He explained that while the contributory pension scheme provides long-term financial security for retirees, gratuity offers immediate financial support that can help them start new ventures or manage their affairs after leaving service.
The NLC president also noted that gratuity payments can provide financial stability for retirees while they wait for their pension benefits. Ajaero further argued that if gratuity payments were stopped in the past without any law abolishing them, those affected should have their entitlements settled.
He therefore called on the government to ensure fairness by paying retirees who were previously denied gratuity. The labour leader maintained that gratuity should remain separate from pension benefits and urged organisations in the private sector to adopt similar arrangements to support their workers after retirement.



