GANGTOK, March 24, 2025: In a significant financial relief for state employees and pensioners, the Sikkim government has officially increased the Dearness Allowance (DA) by 3%, taking it from the existing 50% to 53%, effective from July 1, 2024. This announcement comes at a time when central government employees are still awaiting clarity on their next DA hike.
3% DA Increase Under 7th Pay Commission
According to an official circular issued by the Finance Department on March 21, 2025, the revised DA is applicable to state government employees and pensioners receiving salary under the revised pay structure of the 7th Pay Commission. This move aims to provide relief amid rising inflation and cost of living.
In addition to employees on the revised pay scale, pensioners drawing pensions under the pre-revised pay structure will also benefit. Their Dearness Relief (DR) has been revised from 239% to 246%, also effective July 1, 2024. The official notice was signed by the Controller of Accounts-cum-Secretary of the Finance Department.
Central Government Employees Still Awaiting DA Hike
While state government employees rejoice in this announcement, central government employees are still waiting for a formal decision on their pending DA revision. Sources suggest that the Union Cabinet may finalize the decision in its upcoming meeting scheduled for Wednesday this week.
As per media reports, the expected DA hike for central employees could be just 2%, which, if implemented, would mark the lowest increment in the last seven years. Traditionally, the central government announces DA hikes around the Holi festival period, but this year’s announcement has been delayed.
Financial Relief Amid Inflation
The DA hike serves as a crucial adjustment to help employees and pensioners cope with inflation. As prices of essential commodities continue to rise, the increase in DA and DR is seen as a welcome move to protect real income and maintain purchasing power.