Ogun Govt. Ends Gratuity Scheme, Implements Contributory Pension
Governor Abiodun assured that his administration will expedite the registration of all employees under the CPS through accredited Pension Fund Administrators.
The Ogun State Government has announced the end of gratuity scheme in the state, following the implementation of the Contributory Pension Scheme (CPS), effective from July 2025.
Governor Dapo Abiodun disclosed this on Friday, reiterating his administration’s commitment to workers’ welfare.
“We have resolved to commence the full implementation of the Contributory Pension Scheme (CPS) for Ogun State workers beginning this July 2025. Following a constructive engagement with organized labour, we addressed concerns surrounding the scheme and reaffirmed our commitment to workers’ welfare.
“In the first phase, we shall begin immediate payments to retirees from July 2, 2025, through July 2030, while the second phase covering July 2030 to July 2035 will commence next year. This arrangement ensures timely disbursement during the remaining years of our administration and continues well into the tenure of our successors.
“We have also discontinued the gratuity scheme from July 2, 2025, reverting all consolidated salaries to the CPS. To guarantee prompt benefits, we shall equip PENCOM accordingly and back this plan with appropriate legislation,” he stated.
Governor Abiodun assured that his administration will expedite the registration of all employees under the CPS through accredited Pension Fund Administrators.
He revealed that his government has paid ₦37 billion in gratuities and ₦163 billion in pensions from 2019 to date.
“We have conducted six promotion exercises and will commence payments for 2023 and 2024 promotions in September and December 2025 respectively. Additionally, we are reviewing the basic salary structure to align it with regional standards,” he said.
The Governor expressed gratitude to organised labour for its understanding and cooperation since his inauguration, urging continued dialogue over industrial actions.
“Together, we remain committed to building a progressive, worker-friendly Ogun State,” he added.
