FG Lifts Workers’ Welfare: New Allowances, Pay Rise, and Pension Reforms for Civil Servants

*Brief Summary*

The Federal Government has rolled out several welfare packages for civil servants to cushion rising living costs and improve service delivery. 

The moves include higher Duty Tour Allowances (DTA) for ministers, permanent secretaries and all grade levels; a 25%–35% salary increase across six major consolidated salary structures; a 20%–28% pension increase for retirees; a proposed ₦750 billion Pension Bond; and a Group Life Assurance scheme for all federal workers. 

These steps are part of Pillar Six of the Federal Civil Service Strategy 2021–2025, which puts staff welfare at the centre of reform. 

*Key Highlights – What Changed and Why*

1. *Duty Tour Allowance (DTA) reviewed upward*

   - FG approved new DTA rates effective September 1, 2022. 

Ministers/SGF/HCSF now get ₦80,000 per day, up from ₦35,000. 

Permanent secretaries move from ₦20,000 to ₦70,000 per day.

   - Other levels also increased: 

• GL 01-04 now ₦10,000/diem; 
• GL 05-06 ₦15,000; 
• GL 07-10 ₦17,500; 
• GL 12-13 ₦20,000; 
• GL 14-15 ₦25,000; 
• GL 16-17 ₦37,000.

   - Why: To reflect current economic realities and ensure officials can cover costs while on official trips.

2. *Salary increase for civil servants*

   - FG approved 25% and 35% salary rise for six remaining consolidated structures, effective January 1, 2024.

   - The six structures are: CONPSS, CONRAISS, CONPOSS, CONPASS, CONICCS, and CONAFSS.

   - Tertiary education and health workers had already received increases under CONUASS, CONTISS, CONMESS, CONHESS, etc.

   - Why: Minister of Labour Chris Ngige said the pay raise “takes care of the increased cost of living”.

3. *Pension augmentation*

   - Pension for retirees on Defined Benefits Scheme under those six structures was raised by 20%–28%, also from January 1, 2024.

   - This aligns with Section 173(3) of the 1999 Constitution.

4. *Pension Bond and Insurance*

   - FG proposed a ₦750 billion Pension Bond before the National Assembly to clear pension liabilities.

   - Group Life Assurance scheme approved for all federal employees.

   - Nigerian Social Insurance Trust Fund revived to fully implement Employee Compensation Scheme.

5. *Health and Recognition*

   - OHCSF Wellness Centre repositioned to provide free medical services, consultations and drugs.

   - Rewards and Recognition Policy reviewed to build a performance-driven culture.

*The Old Way vs. After the Development*

Before: 

DTA for top officials was ₦20,000–₦35,000/diem, unchanged for years despite inflation. Salaries lagged behind cost of living, and pension adjustments were irregular. 

Many retirees faced delays in benefits, and there was no group life cover for federal workers. 

Welfare complaints were common, with strikes like the 2023 resident doctors’ strike linked to pay and conditions. a133f968

After: DTA now up to ₦80,000/diem for ministers and ₦70,000 for perm secs. All grade levels get higher rates. Salaries go up by 25%–35% from Jan 2024, and pensions by 20%–28%.

FG is backing welfare with a ₦750bn bond and life assurance. Free wellness services and clearer recognition policies are in place.

*Impact on Stakeholders*

1. *Civil servants*: More take-home pay, better travel allowances, and assurance of life cover. Morale and productivity expected to improve.

2. *Pensioners*: 20%–28% increase helps cushion inflation. The ₦750bn bond aims to clear backlogs.

3. *Government*: Aims to boost efficiency and reduce strikes by addressing welfare, which is Pillar Six of its 2021–2025 strategy.

4. *Public*: Better motivated workforce should improve service delivery. However, economists flagged Nigeria’s ₦41.6tn debt as of March 2022 when DTA was raised, so funding and fiscal balance remain concerns.

5. *Unions*: NLC asked that salary raise be extended to all workers, not just six structures. PSN criticized “selected pay rise,” saying it creates grievances. 

*Recommendations*

1. *For FG*: Extend salary and allowance reviews to all categories, including state and local workers, to avoid agitation. Publish clear timelines for paying the ₦750bn pension bond.

2. *For Ministries/MDAs*: Sensitize staff on new DTA rates, life assurance, and wellness centre services so workers actually use them.

3. *For Civil Servants*: Update personal records and next-of-kin details to benefit from Group Life Assurance. Leverage free wellness checks to reduce health costs.

4. *For Pensioners*: Track implementation of the 20%–28% increase from Jan 2024 and engage PENCOM/PTAD if payments lag.

5. *For Labour Unions*: Dialogue with government on harmonizing increases across all sectors to prevent strikes, as PSN warned. 

*Conclusion*

The Federal Government is making a deliberate push to improve civil servants’ welfare through higher allowances, salary and pension increases, insurance, and health support. 

The DTA review, 25%–35% pay rise, ₦750bn pension bond, and Group Life Assurance show commitment under the Civil Service Strategy 2021–2025. 

While these steps will help workers cope with living costs and boost morale, implementation, funding, and inclusion of all workers remain key. 

If sustained and well-managed, the reforms can drive efficiency and reduce industrial actions in the public service.

Reference

https://punchng.com/fg-raises-allowances-boosts-welfare-for-civil-servants/