Sikkim DA and DR hike has brought relief for state government employees and pensioners ahead of the Diwali season.
The Sikkim government has increased both dearness allowance (DA) for employees and dearness relief (DR) for pensioners.
The decision comes as central government employees continue to await the recommendations of the Eighth Pay Commission.
In the meantime, the Sikkim government has revised DA and DR rates for employees and pensioners covered under different pay structures.
Sikkim DA and DR Hike Details
According to a government circular issued on Thursday, the DA and DR for employees and pensioners receiving benefits under the old basic salary structure have been increased from 257% to 262%.
For employees and pensioners covered under the revised basic salary structure, the DA and DR rates have been increased from 58% to 60%. The revised rates apply according to the respective pay structures mentioned in the government order.
The increase is expected to benefit a large number of state government employees and pensioners. The Sikkim government has around 50,000 employees and pensioners covered by the broader group mentioned in the announcement.
New Rates for Different Employees
The revised rates also cover certain other categories of employees. According to the state’s finance department, the new DA rates will apply to contract employees who are receiving revised pay in the regular pay scale.
Employees working in project-based establishments will also be covered under the revised DA rates, according to the government details.
The order also mentions All India Service officers receiving pay under the old pay scale and grade pay structure based on the Sixth Central Pay Commission. For these officers, DA has been increased from 257% to 262%.
AIS officers receiving pay under the revised basic pay structure based on the Seventh Central Pay Commission will receive DA at the revised rate of 60%, up from 58%.
How the DA and DR Calculation Works
The revised DA and DR rates are linked to the applicable basic salary structure. Therefore, the actual increase in the amount received by an employee or pensioner will depend on the basic pay or pension on which the allowance is calculated.
The government circular has also specified how fractions will be handled while calculating DA and DR. Amounts involving a fraction of 50 paise or more will be rounded up to the next whole rupee.
Fractions below 50 paise will be ignored during the calculation. This rule will apply when the revised DA and DR amounts are worked out.
What This Means for Employees and Pensioners
The Sikkim DA and DR hike changes the applicable allowance rates for eligible employees and pensioners under the specified pay structures.
The revision is particularly relevant for those whose salaries or pensions are calculated using the old and revised basic pay structures mentioned in the circular.
The decision comes before Diwali, a period when additional income can be significant for government employees and pensioners managing household and festival expenses.
The Sikkim announcement is separate from the pending recommendations of the Eighth Pay Commission for central government employees. The latest decision concerns employees and pensioners under the Sikkim government and the categories specifically covered by its circular.
