Liabilities mount, retirees wait: J&K owes Rs 4,468 Cr in dues

Srinagar, Nov 4: The Jammu and Kashmir government is facing an outstanding liability of Rs 4,468 crore towards retired employees, covering unpaid dues under the General Provident Fund (GPF), gratuity, commutation, and leave salary. The large backlog has left thousands of retired and retiring employees struggling to access their rightful benefits months after completing their service.

According to official data, as of October 22, the unpaid liabilities include Rs 2,390 crore under GPF, Rs 1,537 crore under gratuity, Rs 332 crore under commutation, and Rs 209 crore under leave salary. These dues are pending across various treasuries in the Union Territory and continue to accumulate despite periodic fund releases by the government.

During the current financial year, the administration has cleared bills amounting to Rs 2,160 crore under GPF, Rs 770 crore under gratuity, Rs 545 crore under commutation, and Rs 229 crore under leave salary up to October 22. However, senior officials in the Finance Department admit that a substantial portion of liabilities remains unsettled due to funding shortages and procedural bottlenecks.

A senior finance official, who did not wish to be named, said that post-2019, the norms for availing GPF have been made more flexible, allowing employees greater access to their savings. “The problem is not with the rules but with fund availability,” the official said. “The requirement often exceeds the immediate budget provision, leading to a rolling backlog. Payments are made in phases depending on fund releases.”

Employees’ organisations have sharply criticised the government for its failure to ensure timely payments. Wajahat Hussain Durrani, President of the Employees Joint Action Committee (EJAC), said the situation had become both financially and emotionally distressing for retired employees.

“It is an irony that GP Fund is deducted every month from an employee’s salary, but when he needs it most, he is denied access to his own money,” Durrani said. “There are cases where employees have been waiting for months. Some even attach their daughters’ wedding cards or medical prescriptions to show that they need funds urgently. It’s humiliating and deeply unfair.”

Treasury officers, meanwhile, said they continue to process bills as per available allocations. “We have cleared thousands of bills, but the flow of funds from the Finance Department determines how quickly we can make payments,” said a treasury official. “Until additional releases are authorised, many cases remain pending.”

Financial experts say the growing liability reflects wider fiscal stress in the Union Territory. “When retirement liabilities accumulate to this scale, it points to a structural budget deficit,” said a retired accounts officer. “These are not discretionary payments; they are statutory dues. Delaying them affects not only employees but also the credibility of the government’s financial management.”

Many retired employees complain that the long wait has forced them into debt or hardship. “I retired eight months ago, but I have not received my gratuity or commutation,” said Ghulam Ahmad, a retired teacher. “I had planned to use that money for my son’s education, but every time I visit the treasury, they tell me to wait for the next release.”

Officials in the Finance Department said the government is aware of the problem and plans to prioritise the clearance of pending bills in a phased manner. “Efforts are being made to reduce the backlog before the end of the financial year,” the official added.

However, employees’ representatives say assurances mean little without concrete timelines. “These dues represent decades of service,” Durrani said. “Delays in disbursing GPF and gratuity are unacceptable. The government must fix accountability and set a clear deadline to clear all pending cases.”