Sikkim hikes DA by 2% for state employees, arrears before Dashain

Sikkim Chief Minister Prem Singh Tamang announced a 2% hike in dearness allowance for state government employees and dearness relief for pensioners, effective from 1 January 2026, Livemint reports. The arrears will be paid before the Dashain festival in October 2026. Tamang made the announcement during the 80th Independence Day celebrations at Paljor Stadium in Gangtok, attended by ministers, MLAs, and officials.

For central government employees, dearness allowance is revised twice a year, effective 1 January and 1 July. Livemint explains that the rate is calculated using the Consumer Price Index for Industrial Workers based on the 7th Pay Commission formula. The final revision requires Union Cabinet approval and an official notification. A gap can exist between the effective date and the announcement, leading to retrospective payments and arrears.

The Union Finance Ministry in April raised DA for central employees from 58% to 60% of basic salary with effect from 1 January 2026. Expectations are now building for the July revision, which will follow the same approval process and depends on inflation data.