DA Hike: This State Government Increases Dearness Allowance For Employees And Pensioners

With this hike, the DA for government employees and pensioners in Sikkim has risen to 46 percent.
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DA Hike: This State Government Increases Dearness Allowance For Employees And Pensioners (Image Source: iStock)

The Sikkim government has increased the dearness allowance (DA) for its employees and pensioners by four percent. This change, effective from July 1, 2023, was announced during the first cabinet meeting of the second Sikkim Krantikari Morcha government on June 10, 2024. The meeting was led by Chief Minister Prem Singh Tamang.

Sikkim DA Hike: Current Dearness Allowance

With this hike, the DA for government employees and pensioners in Sikkim has risen to 46 percent.

What Will Be The Impact On State?

Officials estimate that this increase will cost the state exchequer ?174.6 crore for the current financial year.
DA Hike For Central Government
On March 7, the Union Cabinet approved a similar 4 percent hike in DA for central government employees and pensioners, raising it to 50 percent of the basic pay.

Central Employees' DA Hike

This change took effect from January 1, 2024, benefiting over one crore employees and pensioners. Additionally, the House Rent Allowance (HRA) was also increased.

8th Pay Commission

With the DA now at 50 percent, there are calls from various central government bodies, including railway unions, for the establishment of the 8th Pay Commission. Reports suggest that the 8th Pay Commission could be implemented from January 2026.
Background on Pay Commissions and Allowances
The current 7th Pay Commission was established in 2014, with its recommendations coming into effect in 2016. This resulted in a salary increase of around 23 percent for central government employees.

When Pay Commission Is Formed?

Typically, a new pay commission is formed every ten years, though it is not legally mandated.
What Is Role Of Pay Commission In Pay And Allowances?
Pay commissions review and recommend changes to the pay, allowances, and benefits for central government employees and pensioners.
When Was The First Pay Commission Established?
The first pay commission was established in 1946.
End of Article
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