DA Hike: Central and state governments frequently provide relief to government employees and pensioners. This time, the announcement comes from the Sikkim government rather than the central government. The Sikkim government has increased the Dearness Allowance (DA) and Dearness Relief (DR). According to a circular issued by the Finance Department, the revised rates will be effective from January 1. Employees and pensioners drawing salaries and pensions under various pay scales will benefit from this hike.

Details of the DA Hike
The government has increased the DA and DR by 5 per cent for those on the old pay scale. For employees and pensioners drawing salaries or pensions based on pre-revised basic pay, the DA and DR have been raised from 257 per cent to 262 per cent. Additionally, for employees and pensioners under the revised basic pay structure, the DA and DR have been increased from 58 per cent to 60 per cent. Both these rates will be effective from January 1.

Eligible Employees

Specific categories of employees will benefit from this hike. Contractual employees and work-charged staff who receive revised salaries under the pay scales applicable to regular government employees will also benefit from the new DR rate. Furthermore, the Dearness Allowance for All India Services (AIS) officers working in the state has also been increased. The DA has been raised from 257 per cent to 262 per cent for the old pay structure (6th Pay Commission) and from 58 per cent to 60 per cent under the 7th Pay Commission structure.

Understanding the Calculation Rule

The government has clarified the calculation rules for DA and DR: if the calculated hike amount results in a fraction of 50 paise or more, it will be rounded off to the next whole rupee. Any amount less than 50 paise will be rounded off.

Number of employees set to benefit

Approximately 50,000 employees stand to benefit from this government decision. According to the government, the objective behind increasing DA and DR is to mitigate the impact of inflation on employees’ salaries and pensions. The newly announced rates will come into effect from January 1, and the government will make payments to employees and pensioners based on this date.