Tamang made the announcement while addressing the 80th Independence Day celebrations at Paljor Stadium in Gangtok, according to a PTI report.
The arrears arising from the revision will be paid before Dashain 2026, Tamang said.
Sikkim had earlier raised DA and DR to 58% from 55%, effective July 1, 2025, for employees and pensioners covered under the revised pay structure.
With the latest 2 percentage-point increase, the rate would move to 60%, subject to the formal government order.
Who will benefit from the DA hike?
The revision will benefit eligible Sikkim government employees and pensioners. DA is paid to serving employees, while DR is the corresponding benefit for pensioners.
The actual increase in monthly income will vary from person to person because DA is calculated as a percentage of basic pay. Similarly, the increase in DR will depend on the pensioner’s basic pension.
What is dearness allowance?
Dearness allowance is a cost-of-living allowance paid to government employees to help offset the impact of inflation. It is calculated as a percentage of basic pay.
Dearness Relief serves a similar purpose for pensioners. Since the allowance is linked to basic pay or pension, a 2 percentage-point increase does not translate into the same rupee increase for every employee or pensioner.
The Centre had also approved a 2 percentage-point increase in DA and DR, from 58% to 60%, effective January 1, 2026. Sikkim’s latest announcement, however, is a state government decision.
-With PTI inputs
