Gangtok, Oct. 1 -- Sikkim DA and DR hike will raise the applicable rate from 58 per cent to 60 per cent for eligible state government employees and pensioners, with retrospective effect from January 1, 2026, according to a Finance Department circular.

The revision applies to state government employees drawing salaries under the revised basic pay structure. Pensioners covered by the corresponding revised pension structure will receive Dearness Relief at the enhanced rate.

The circular said the decision was taken on the recommendations of the Pay Committee and was issued in continuation of an earlier Finance Department circular dated October 7, 2025.

Contractual and work-charged employees covered The enhanced allowance will also apply to...