The Jammu and Kashmir Government has said the maximum limit of Death-cum-Retirement Gratuity (DCRG) for employees working in regular pay levels under the 7th Pay Commission has been enhanced from ₹20 lakh to ₹25 lakh, with effect from January 1, 2024, following the Dearness Allowance reaching 50 per cent of basic pay.
In a clarification circular issued by the principal secretary finance, ‘Attention is invited to Note 8’ below Article 240-BB of the Jammu and Kashmir Civil Service Regulations, Volume I, added vide SRO-194, dated 24.04.2018, which provides that the ceiling on Death-cum-Retirement Gratuity will increase by 25 per cent whenever the Dearness Allowance rises by 50 per cent of the basic pay.
Vide Government Order No. 178-F of 2024, dated 21.05.2024, it was ordered that government employees working in the regular pay levels under 7th Pay Commission recommendations shall be paid Dearness Allowance at the revised rate of 50 per cent of basic pay with effect from 01.01.2024.
References have been received in the Finance Department seeking clarification regarding enhancement of the maximum limit of Death-cum-Retirement Gratuity, consequent upon the Dearness Allowance reaching 50 per cent, w.e.f 01.01.2024. The matter has been examined and it is hereby clarified that, subject to other conditions prescribed under the rules governing grant of Death-cum-Retirement Gratuity, the maximum limit of Death-cum-Retirement Gratuity shall be deemed to have been enhanced by 25 per cent from the existing ceiling, i.e., from ₹20.00 lakh (Rupees Twenty lakh) only to ₹25.00 lakh (Rupees Twenty-five lakh) only, with effect from 01.01.2024, the date on which Dearness Allowance reached 50 per cent of the basic pay.
Pertinently, the J&K government announced 2 per cent hike in dearness allowance (DA) in June 2025 for its employees, which was commensurate with hike given to Central government employees at that time. The arrears upon hike were also announced and were to be given with effect from June.
Follow us
