Gangtok, October 1 : Sikkim DA and DR hike will raise the applicable rate from 58 per cent to 60 per cent for eligible state government employees and pensioners, with retrospective effect from January 1, 2026, according to a Finance Department circular.
The revision applies to state government employees drawing salaries under the revised basic pay structure. Pensioners covered by the corresponding revised pension structure will receive Dearness Relief at the enhanced rate.
The circular said the decision was taken on the recommendations of the Pay Committee and was issued in continuation of an earlier Finance Department circular dated October 7, 2025.
Contractual and work-charged employees covered
The enhanced allowance will also apply to eligible contractual employees and personnel working in work-charged establishments who draw revised pay under the regular state government pay scales.
The increase represents a two-percentage-point revision in Dearness Allowance and Dearness Relief for employees and pensioners covered by the revised structure.
Dearness Allowance is intended to help serving employees offset the impact of rising living costs, while Dearness Relief provides a corresponding adjustment to eligible pensioners.
Separate rates for All India Service officers
The circular also specifies revised Dearness Allowance rates for All India Service officers serving under different pay structures.
For AIS officers continuing under the pre-revised pay band and grade pay system of the Sixth Central Pay Commission, the DA rate has been increased from 257 per cent to 262 per cent.
AIS officers drawing salaries under the revised basic pay structure of the Seventh Central Pay Commission will receive DA at 60 per cent, compared with the previous rate of 58 per cent. Both revisions will take effect from January 1, 2026.
Rounding-off and implementation instructions
The Finance Department has directed that fractions of 50 paise or more arising from the revised payments be rounded up to the next rupee. Fractions below 50 paise will be disregarded.
The circular has been sent to secretaries, heads of departments and other concerned authorities for implementation. Departments have also been instructed to update the revised rates in the PRANALI system.
The actual financial benefit received by individual employees and pensioners will depend on their applicable basic pay or pension and the pay structure under which they are covered.