The President of the Nigeria Labour Congress, Joe Ajaero, has praised the Federal Government for approving a new gratuity scheme for retiring federal civil servants.
Ajaero gave the commendation on Tuesday in Abuja during an interview with the News Agency of Nigeria.
The Federal Government recently introduced an enhanced exit benefit package under which retiring civil servants will receive a gratuity equal to 100 per cent of their total annual emoluments.
The gratuity will be paid in addition to the pension benefits provided under the Contributory Pension Scheme.
The new scheme is expected to take effect from January 1, 2026, and will apply to workers who have spent at least 10 years in service.
Ajaero described the decision as a positive step that would provide financial support for workers after retirement.
He explained that gratuity is different from pension because it serves as a form of appreciation to employees who have dedicated many years of service to their employers.
According to him, while the contributory pension scheme provides long-term support, gratuity offers immediate financial assistance that retirees can use to start new ventures or manage their affairs after leaving service.
He added that the payment would help retirees meet their needs while waiting for their pensions.
Ajaero also stressed that gratuity had never been abolished by any law in the civil service, noting that workers who were previously denied the benefit should have their entitlements settled.
He urged the government to ensure fairness for retirees affected by the earlier stoppage of gratuity payments.
The labour leader further emphasised that gratuity and pension are separate benefits and should not be treated as the same.
According to him, both systems should operate independently to guarantee adequate welfare for retirees.
Ajaero also encouraged private sector organisations to adopt similar gratuity arrangements for their employees, saying it would promote fairness and appreciation for workers across all sectors.
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