The relief was sanctioned at a Cabinet meeting chaired by Chief Minister Omar Abdullah here.
The meeting also ordered appointment of one member from each bereaved family in government service on compassionate grounds, an official spokesman said.
"The cabinet extended ex-gratia of Rs five lakh each to the next of kin of those killed in the firing incident. It further ordered that government job will be provided to a family member of those killed in the incident," the spokesman said.
"The state cabinet condemned the excessive use of force in Gool area of Ramban district and extended condolences to the bereaved families and sympathies with those injured in the firing incident," the spokesman added.
Four persons were killed and 44 others, including security personnel, injured in stone-pelting and resultant firing when a mob attacked a BSF camp in Ramban district over alleged high-handedness by a BSF team.