DA Hike News: Newly appointed Chief Minister Prem Singh Tamang of Sikkim has been sworn in, pledging both office and confidentiality. Subsequently, the state government has unlocked the treasury for its employees by announcing a 4 percent increase in dearness allowance during his inaugural cabinet meeting, marking a generous gesture. Importantly, these revised rates for dearness allowance will take effect from July 1, 2023.
Employees and pensioners are visibly delighted by this government decision, which promises substantial benefits to a wide array of beneficiaries. This benefit will be akin to a grand gift for many employees and pensioners.
How much impact will it have on the government treasury?
As per officials, there has been a 4% rise in the Dearness Allowance (DA) of employees in Sikkim, now reaching 46%. This increase in DA will escalate the financial burden on Sikkim’s exchequer by around 174.6 crore rupees in the ongoing fiscal year. Earlier, the West Bengal government too had opted to enhance DA for its state employees.
Prior to this, the West Bengal government had also made a decision to raise the Dearness Allowance (DA) for state employees. The increase was announced to be effective from April 2024. This enhancement will be greatly advantageous for the employees.
Quickly know when the government had increased DA and DAR
Earlier, starting from January 1, 2024, the Central Government had approved a 4% increase in Dearness Allowance (DA) as per the 7th Pay Commission’s guidelines. This adjustment was subsequently raised from 46% to a flat 50%, offering considerable advantages to employees. Moreover, the Central Government elevated the inflation relief for pensioners from 5% to 50%. Under Prem Singh Tamang’s leadership, Sikkim Krantikari Morcha secured a decisive victory in the state elections in Sikkim.
Government annually increases Dearness Allowance (DA) twice. The rates become effective from January 1 and July 1 respectively. Now, with the DA increase, its rates will be considered effective from July 1.
