Government of Sikkim has approved an increase in dearness allowance (DA) and dearness relief (DR) for its employees and pensioners, reinforcing efforts to offset inflationary pressures. The revision was notified through a Finance Department circular issued on 18 March.
Under the new order, employees and pensioners under the pre-revised pay structure will see their DA and DR rise from 252 to 257 per cent, with effect from 1 July, 2025. For those covered under the revised pay framework, the allowance has been increased from 55 to 58 per cent from the same date.
The revised rates will not be limited to regular employees alone. Contractual staff and workers engaged under work-charged establishments will also benefit, provided their salaries align with standard state-government pay scales. In addition, the updated allowance structure will extend to All India Service officers currently serving in the state.
For such officers, those under older pay bands will receive an increase similar to other employees under the pre-revised structure, while those aligned with the 7th Central Pay Commission framework will see their DA revised to 58 per cent.
The Finance Department has also outlined the calculation method for the revised payouts. Any fractional amount of 50 paise or more will be rounded up to the nearest rupee, while amounts below that threshold will be disregarded.
This revision follows earlier adjustments announced in October 2025 and is based on the recommendations of the state’s Pay Committee. The move signals the government’s continued approach of periodic DA revisions to maintain income parity amid changing economic conditions.
