Bihar DA hike ahead of Chhath Puja: State govt employees' allowance rises from 60% to 63% — check details
The Bihar government on Tuesday approved an increase in the dearness allowance (DA) for state government employees and dearness relief (DR) for pensioners with effect from July 1, 2026, PTI reported.
The decision was taken at a Cabinet meeting chaired by the state's Chief Minister Samrat Choudhary, ahead of Chhath Puja, which will be celebrated from November 13 to 16 this year.
Under the finance department's proposal, DA and DR for employees and pensioners covered by the 7th Pay Commission will rise from 60% to 63%.
Meanwhile, for those under the 5th Pay Commission structure, the DA and DR rate has been raised from 483% to 497%, the report stated.
Who will benefit from the hike
The revised rates will benefit serving state government employees, pensioners and family pensioners covered under the respective pay structures, a senior official of the finance department told the news agency.
This development comes after the central government also announced a 3% increase in dearness allowance for its employees earlier in October, raising the rate from 60% to 63% with effect from July 1, 2026.
Will Bihar govt employees receive arrears?
Following the Bihar Chief Minister's approval, the differential amount of the dearness allowance for the period from July 1, 2026, to October 31, 2026, will be paid in cash as arrears to eligible employees.
When and why is DA revised for govt employees?
The government revises DA rate twice a year, with changes effective from January 1 and July 1. While the January revision is announced in either March or April, the July revision is often announced in October month of the year.
The central and state governments raise the DA and DR rate to offset the impact of inflation and rising living costs on government employees and pensioners.
Inflation erodes the purchasing power of money, which is why dearness allowance (DA) is revised twice a year. To calculate the DA and DR rates, the government uses the latest Consumer Price Index for Industrial Workers (CPI-IW), which is released by the Labour Bureau every month.
Big relief for urban local body employees
The Bihar Cabinet also approved the implementation of the Modified Assured Career Progression Scheme for regular employees of urban local bodies in the state. The move is expected to provide financial benefits to those who have spent years in the same post without promotions.
“The decision is aimed at providing financial advancement to employees who often retire after serving for years in the same post without any promotion or career progression opportunities,” said the approved proposal of the Urban Development and Housing Department, according to PTI.
The move reportedly follows long-standing demands from urban local body employees, who did not have provisions for regular promotions.
With the approval of this scheme, the state government aims to boost employees' motivation, efficiency and commitment towards discharging their duties and responsibilities, an official told the news agency.