SRINAGAR: The Jammu and Kashmir Government has clarified that the ceiling on Death-cum-Retirement Gratuity (DCRG) for employees in regular pay levels under the 7th Pay Commission has been increased from Rs 20 lakh to Rs 25 lakh with effect from January 1, 2024, following the Dearness Allowance reaching 50 per cent of basic pay.
According to a clarification circular issued by the Principal Secretary, Finance, the enhancement is in line with Note 8 below Article 240-BB of the Jammu and Kashmir Civil Service Regulations, Volume I, inserted vide SRO-194 dated April 24, 2018, which provides for a 25 per cent rise in the gratuity ceiling whenever Dearness Allowance reaches 50 per cent of basic pay.
The circular also referred to Government Order No. 178-F of 2024 dated May 21, 2024, under which Dearness Allowance for government employees under the 7th Pay Commission was revised to 50 per cent of basic pay with effect from January 1, 2024.
Following queries received by the Finance Department regarding the consequential enhancement of the gratuity ceiling, the government examined the matter and clarified that, subject to existing rules governing DCRG, the maximum limit stands enhanced by 25 per cent—from Rs 20 lakh to Rs 25 lakh—from the date the Dearness Allowance reached 50 per cent of basic pay.
