The move is aimed at encouraging more employees to work in the valley, officials said.
The concessions include an option for employees to move their families to a selected place of their choice in the country at government expenses, the order issued Tuesday said.
Kashmir Valley comprises ten districts — Anantnag, Baramulla, Budgam, Kupwara, Pulwama, Srinagar, Kulgam, Shopian, Ganderbal and Bandipora.
The special grant also include departmental arrangements for stay, security and transportation to the place of work for employees, it said.
A per diem allowance of Rs 113 will also be paid for each day of attendance to compensate for any additional expense in transportation to and from office etc.
Messing allowance is also paid to all the employees posted in Jammu and Kashmir at the rate of Rs 97.85 per day, the order said.
“Pensioners of Kashmir Valley who are unable to draw their monthly pensions through either public sector banks or Pay and Accounts Officer (PAO) treasuries from which they were receiving their pensions, would be given pensions outside the valley where they have settled, in relaxation of relevant provisions,” it said.
The package of incentives is uniformly applicable to all ministries, departments and public sector undertakings under Government of India and they should ensure strict adherence to the rates prescribed in the package, the Personnel Ministry said.
“It has been decided by the competent authority to extend the package of concessions or incentives to central government employees working in Kashmir Valley for a further period of two years, with effect from January 1, 2018,” said the order issued a year after the date of it coming into the force.