The All Party Parliamentary Group (APPG) for British Sikhs alongside Sikh Federation UK are leading calls for the change.
"I believe that wherever possible it is right that people should be given the opportunity to identify themselves. With more than 400,000 Sikhs in the UK but no real way to track that without the separate box on the census, now is the right time to let people define as they wish," said Virendra Sharma, one of senior-most Indian-origin Labour MPs in the British Parliament.
The British Sikhs claim the move will ensure Sikhs have fair access to all public services in the country.
The authority oversees the Office of National Statistics (ONS), which had revealed it was undertaking research on adding Sikh and Kashmiri as separate ethnic tick boxes in the 2021 census earlier this year.
"We are a long way off as there is still a lot of research that needs to be done to ensure that the census held every 10 years collects all the right information," an ONS spokesperson said.
The MPs welcomed the research in their letter and claimed the demand within the British Sikh community is "both high and continuing to grow".
They said: "The Census 2011 saw around 84,000 Sikhs object to the existing ethnic group categories by using the write in option and specifying 'Sikh' for the ethnicity question. This was nearly an eight-fold increase compared to the Census 2001 and several times higher than any other group".
A number of issues faced by Sikhs, ranging from the reporting of hate crimes through to accessing healthcare provision in the UK, are not receiving appropriate attention by public bodies as they often only monitor ethnic group categories specified in the census, the MPs said.
"Local authorities with huge Sikh populations are not recording data that will assist public health professionals to ensure services are being delivered that are being targeted correctly for communities," said Preet Kaur Gill, the first female British Sikh MP and chair of the APPG for British Sikhs.
The other newly-elected British Sikh MP in the June general election, Tanmanjeet Singh Dhesi, is also among the signatories of the campaign.
Sikhs are already recognised as a separate religion within an optional religious question introduced in the 2001 Census.
In preparation for the 2021 census, which is expected to be conducted largely online, the ONS ran a test version of the census this year with "Sikh" included as an option under ethnicity in areas with large Sikh populations - Hounslow in west London and Wolverhampton in the West Midlands region of England. It found that almost a quarter of those who specified Sikhism as their religion also chose Sikh as their ethnicity.
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