Bihar Cabinet hikes dearness allowance for employees and pensioners
The decision to increase dearness allowance will be effective from July 1, 2026, providing relief ahead of the Chhath festival.
The Bihar Cabinet on Tuesday approved an increase in dearness allowance (DA) for state government employees, pensioners, and family pensioners, according to reports by The Hindu and Moneycontrol. The meeting was chaired by Chief Minister Samrat Choudhary.
For those under the 7th Pay Commission, the DA will rise from 60 per cent to 63 per cent. Employees under the 6th Pay Commission will see an increase from 262 per cent to 269 per cent, while those under the 5th Pay Commission will receive a hike from 483 per cent to 497 per cent. The revised rates are effective from July 1, 2026.
Cabinet Secretariat Department Additional Chief Secretary Arvind Kumar Chaudhary said the decision would add an additional burden of ₹1,080.33 crore to the state exchequer. He noted that the amount for the 5th and 6th pay scales is minuscule.
The Cabinet also approved several other proposals, including the 'Bihar Ki Beti Startup Challenge Scheme' to support female students. With an approved sum of ₹88.20 crore, the scheme aims to benefit up to 2,100 female students from the 2026-27 to 2029-30 financial years.
Other approved measures include the 'Chief Minister’s Girls’ Ph.D. Fellowship Scheme' with ₹126 crore for higher education research, and the establishment of the 'Bihar Artificial Intelligence Mission'. Additionally, the Cabinet approved the Bihar Building Byelaws, 2026, to simplify construction approvals.