Jammu Kashmir Govt Enhances Retirement Gratuity Ceiling to Rs 25 Lakh After DA Reaches 50 Percent

Jammu Kashmir Govt Enhances Retirement Gratuity Ceiling to Rs 25 Lakh After DA Reaches 50 Percent

Srinagar/Jammu, Feb 18: The Finance Department of the Government of Jammu and Kashmir has clarified that the maximum limit of Death-cum-Retirement Gratuity (DCRG) for government employees has been enhanced from ₹20 lakh to ₹25 lakh following the Dearness Allowance (DA) reaching 50 per cent of basic pay.

The clarification was issued through an Office Memorandum dated February 18, 2026, by the Finance Department (Codes Division) at Civil Secretariat, Srinagar/Jammu.

According to the memorandum, Note 8 below Article 240-BB of the Jammu and Kashmir Civil Service Regulations, Volume I — inserted vide SRO-194 dated April 24, 2018 — provides that the ceiling on Death-cum-Retirement Gratuity shall increase by 25 per cent whenever the Dearness Allowance rises by 50 per cent of the basic pay.

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The department recalled that under Government Order No. 178-F of 2024 dated May 21, 2024, government employees working in regular pay levels under the 7th Pay Commission recommendations were granted Dearness Allowance at the revised rate of 50 per cent of basic pay with effect from January 1, 2024.

In view of references seeking clarification on the enhancement of the gratuity ceiling consequent upon DA touching the 50 per cent mark, the Finance Department has now formally confirmed that the maximum limit of Death-cum-Retirement Gratuity shall be deemed to have been increased by 25 per cent.

As a result, the ceiling stands revised from ₹20 lakh to ₹25 lakh, effective January 1, 2024 — the date on which the Dearness Allowance reached 50 per cent of basic pay.

The order states that the enhancement is subject to other conditions prescribed under the rules governing the grant of Death-cum-Retirement Gratuity.

The memorandum has been issued under the signature of Santosh D. Vaidya, IAS, Principal Secretary to the Government, Finance Department.