Nigeria Labour Congress (NLC), has called for the restoration of gratuities for public service retirees, saying it will provide immediate succour for them, pending the release of their pension.
Gratuity is a payment made to an employee immediately the employee retires or exit the employment, provided the employee spends the minimum years for such payment. It was prominent in the public sector and some private sectors under the old pension scheme.
Under the Contributory Pension Scheme (CPS), gratuity is not mandated but neither is it illegal, employers have the power to pay any other severance benefits, (by whatever name called) over and above the retirement benefits mandated by the Pension Act, to their employee, subject to the terms and conditions of their employment. What NLC is demanding now is that the Pension Act should mandate employers to pay gratuity.
The NLC made the demand on Tuesday in Abuja at a public hearing on two bills on the Pension Reform Act organised by the House of Representatives Committee on Pension.
Mr Uche Ekwe, Head, International Relation, NLC while presenting the union’s position on the two bills, said the restoration of gratuity payment in public service is the only solution to the problems bedeviling the payment of pension to retirees in Nigeria.
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