7th Pay Commission: The Sikkim government has hiked dearness allowance (DA) by four per cent for its employees and pensioners, with effect from July 1, 2023. The decision was taken during the first cabinet meeting of the second Sikkim Krantikari Morcha government on Monday evening (June 10, 2024).
The meeting was presided over by Chief Minister Prem Singh Tamang.
With the four per cent hike, the dearness allowance for government employees and pensioners has gone up to 46 per cent, the officials said.
The increase in DA will have an impact of Rs 174.6 crore on the state exchequer in the current financial year, they added.
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8th Pay Commission for Central Govt Employees Likely In January 2026
On March 7, the Union Cabinet had approved a 4 per cent hike in dearness allowance (DA) to 50 per cent of the basic pay. The 4 per cent DA hike, which will benefit over one crore central government employees and pensioners, has become effective from January 1, 2024. Apart from this, HRA was also increased for the employees.
As the DA has reached 50 per cent of the basic pay, various central government bodies, including railways unions, have started raising demands for constituting the 8th Pay Commission.
According to reports, the 8th Pay Commission is likely to be implemented from January 2026.
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In a letter to the Ministry of Personnel, Public Grievances, and Pensions, the Indian Railways Technical Supervisors’ Association has urged to the government to set up the 8th Pay Commission and address all current anomalies while not giving room for “future anomalies”.
The Department of Personnel & Training (Do&PT) has forwarded this letter to the Department of Expenditure (finance ministry) for further action.
The expenditure ministry is responsible for implementing the recommendations of a pay commission.
The current 7th Pay Commission was formed in 2014 and its recommendations came into effect in 2016. As a result of it, salaries of central government employees were increased by around 23 per cent. Usually, a central pay commission is formed every 10 year, though is it not mandatory by law.
The pay commission examines, reviews, evolves and recommends changes regarding the principles that should govern the emoluments’ structure including pay, allowances, and other facilities/benefits/ of central government employees and pensioners.
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The First Pay Commission was set up in 1946.
DA is given to government employees, while DR is given to pensioners. DA and DR are hiked twice a year, with effect from January and July.
The DA and DR hike is decided based on the percentage increase in the 12-month average of the All-India CPI-IW. Though the central government revises the allowances on January 1 and July 1 every year, the decision is generally announced in March and September/October.
In 2006, the central government had revised the formula to calculate the DA and DR for central government employees and pensioners.
