"This amount will be more when FGVH makes higher profits," Najib said.
Apart from that, settlers can earn between 14 and 15 per cent dividend as members of Koperasi Permodalan Felda, which owns 17 per cent stake of FGVH.
"Settlers will also get housing loans with no-interest payments, which is the best loan scheme in the world."
In recognition of their blood, sweat and tears in toiling in their oil palm estates as early as 1956, they also get to keep their plots, he said while expressing hopes that settlers will not sell their FGVH shares.
In addition, Najib announced that Felda's 20,000-strong staff, from top managers to staff, would be getting a 2.5-month bonus, which is on top of their yearly bonus, as appreciation for their hard work in managing the settlers.
Najib said the windfall would be raised from the listing of FGVH, which is Felda's wholly-owned commercial arm.
Under the initial public offering, FGVH, which is expected to float its shares on Bursa Malaysia by the end of next month, will have a market capitalisation of RM17 billion, making it one of Bursa Malaysia's top 20 firms with the largest market capitalisation. Under the windfall, each settler will be paid RM5,000 before the listing of FGVH.
Under phase two, RM5,000 will be paid out to each settler's wife after the listing. The last portion of RM5,000 will be paid to the second generation of Felda settlers.
The amount of RM5,000, under each phase for the wife and second generation, will be shared if the settler has more than one wife or one child.
Najib, who is also the minister in charge of Felda, said the payout under the first batch, totalling RM563.17 million, would be credited into the settlers' bank accounts within three weeks.
The payout, he said, did not include other payments such as production incentives, duit Raya and bonuses that are paid to settlers when crude palm oil fetches a higher price.