Officials said the employees working in the valley have also been given an option to move their families to a place of their choice across India at government expenses.
Besides, the Central Government will pay a per diem (per day) allowance of Rs 10 for each day of attendance to compensate for any additional expense in transportation to and from office to employees who do not wish to move their families to a selected place of residence.
"This will be in addition to the transport allowance, which the employee is otherwise eligible for," an official memorandum by the Department of Personnel and Training said.
The employees will also be given special daily allowance for food.
The move, officials say, is aimed at encouraging others to take up employment in the Kashmir valley and motivate employees posted there already.
The package of concession will be admissible only in the valley consisting of ten districts namely, Anantnag, Baramulla, Budgam, Kupwara, Pulwama, Srinagar, Kulgam, Shopian, Ganderbal and Bandipora.
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Earlier this month, the Centre extended till this year end relaxation for Leave Travel Concession (LTC) by air for its employees to visit J-K.
"The condition is that air tickets can be purchased either directly from the airlines or through the department authorised agents," an official said adding that "travel by air continues to be in Economy class only, irrespective of the entitlement of the officer".