Sikkim govt hikes Dearness Allowance by 5 per cent for employees and pensioners

The Government of Sikkim has announced an increase in Dearness Allowance (DA) and Dearness Relief (DR) for state employees and pensioners, according to a circular issued by the Finance Department on March 18.

Under the order, the DA for employees and DR for pensioners drawing pay under the pre-revised structure has been raised from 252 per cent to 257 per cent, effective from July 1, 2025. For those under the revised pay structure, the DA will increase from 55 per cent to 58 per cent from the same date.

Officials stated that the revised allowance will also apply to contractual employees and those working under work-charged establishments, provided their pay falls under the regular state government scales.

The enhanced DA rates will also cover All India Service officers serving in Sikkim. Officers under the pre-revised pay band will receive an increase from 252 per cent to 257 per cent, while those under the 7th Central Pay Commission structure will see a hike from 55 per cent to 58 per cent.

The Finance Department clarified the calculation method for the revised payments: any fraction of 50 paise or more in the final amount will be rounded up to the next rupee, while fractions below 50 paise will be ignored. 

The move follows the recommendations of the Pay Committee and continues the government’s earlier notification issued in October 2025.