The Government of Sikkim has announced a 5 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR) for state employees and pensioners, according to a Finance Department circular issued on March 18.
The revised rates will come into effect from July 1, 2025, offering a modest boost to salaries and pensions amid rising cost-of-living pressures.
Under the new order, employees and pensioners drawing pay under the pre-revised structure will see DA/DR rise from 252 per cent to 257 per cent. For those under the revised pay structure, the allowance will increase from 55 per cent to 58 per cent.
Officials said the revised rates will also apply to contractual employees and those working under work-charged establishments, provided their pay aligns with regular state government scales.
Also read: Tripura govt announces 5% DA, DR hike for employees, pensioners
The benefits will extend to All India Service officers serving in Sikkim as well. Officers under the pre-revised pay band will receive the same hike from 252 per cent to 257 per cent, while those under the 7th Central Pay Commission structure will see their DA increase from 55 per cent to 58 per cent.
The Finance Department has also laid down guidelines for calculating the revised payments. Any fraction of 50 paise or more in the final amount will be rounded up to the next rupee, while amounts 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, signalling a steady approach to periodic revision of allowances.
The hike is expected to benefit a wide section of government employees and pensioners in the state, providing some relief against inflationary pressures.
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