Yousuf, 42, was posted as agricultural assistant in Budgam of central Kashmir when he was arrested by the National Investigation Agency (NIA) on October 24.
The officials termed the suspension as routine. Every government servant is deemed to be suspended within 48 hours of his or her arrest under the civil services conduct rules.
However, in this case, the state government had sought some clarifications from the NIA before issuing the order.
Yousuf was arrested by the NIA in connection with a 2011 terror-funding case for allegedly receiving money from his father, who is currently based in Pakistan.
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The NIA claimed he had received a total of nearly Rs 4.5 lakh through eight international wire transfers.
The NIA has filed two charge sheets against six people including G M Bhat, a close aide of pro-Pakistan separatist Syed Ali Shah Geelani, Mohammed Siddiq Ganai, Ghulam Jeelani Liloo and Farooq Ahmed Dagga. All four are in judicial custody.
Two others -- Mohammed Maqbool Pandit and Bhat -- also named in the charge sheets are absconding. An Interpol Red Corner notice has been issued against them.
Besides heading Hizbul Mujahideen, Salahuddin is the chairman of the United Jehad Council (UJC), a conglomerate of terrorist outfits operating in the Kashmir Valley.
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