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Thursday, 12 November 2026
BREAKING
BUSINESS

Bihar Government Increases DA for Employees and Pensioners

Patna, November 12: The Bihar government has granted a significant relief to state employees, pensioners, and family pensioners by approving an increase in Dearness Allowance (DA) and Dearness Relief (DR). The DA/DR under the 7th Pay Commission has been raised from 60% to 63%, with similar increases for those under the 6th and 5th Pay Commissions. The new rates will come into effect from July 1, 2026, meaning eligible employees and pensioners will also benefit from arrears based on the increased DA and DR.

DA for 7th Pay Commission Employees Increased to 63%

According to a report, following the Bihar Cabinet’s decision, employees and pensioners under the 7th Pay Commission will receive an additional 3% in DA/DR. Previously, the DA and DR rate was 60%, which has now been raised to 63%. This increase will take effect from July 1, 2026.

For instance, if an employee has a basic pay of ₹30,000, they previously received ₹18,000 as DA at the 60% rate. With the new 63% rate, this amount will increase to ₹18,900, resulting in a monthly DA increase of ₹900. However, the actual benefit will depend on the employee’s basic pay and salary structure.

Benefits for 6th and 5th Pay Commission Employees

The Bihar government has also raised the DA and DR for employees and pensioners under the older pay commissions.

Pay Commission Previous DA/DR New Rate Increase
7th Pay Commission 60% 63% 3%
6th Pay Commission 262% 269% 7%
5th Pay Commission 483% 497% 14%

This decision will benefit state government employees, pensioners, and family pensioners who fall under the respective pay structures.

The government has made the new DA and DR rates effective from July 1, 2026. This means that employees and pensioners who have been receiving payments based on the old rates may also receive the difference for the previous period according to the rules. However, the timeline and method for the payment of arrears will depend on the government’s detailed orders and departmental processes.

Additionally, the Bihar Cabinet has approved the implementation of the Modified Assured Career Progression (MACP) scheme for regular employees of urban local bodies. This decision aims to provide financial progress to employees who have been working in the same position for a long time without adequate promotion opportunities. The government hopes this will boost employee morale and enhance their efficiency and commitment to their responsibilities.

The Cabinet has also decided to launch the ‘Bihar Ki Beti Startup Challenge Scheme’ to promote innovation and entrepreneurship among female students in higher educational institutions. The scheme aims to benefit up to 2,100 female students and will be implemented over four financial years from the current fiscal year to FY30, with an administrative approval of ₹88.20 crores. This initiative aims to help female students transform their new and innovative ideas into practical business models.

To increase female participation in higher education and research, the Bihar government has also approved the Mukhyamantri Balika PhD Fellowship Scheme, which will operate for four financial years from FY27 to FY30. The government believes this will help enhance women’s participation in higher education.

Furthermore, the Bihar government has approved the Bihar Artificial Intelligence Mission to strengthen the AI ecosystem in the state. This mission aims to promote skill development and innovation by connecting leading companies and institutions in the AI sector. The plan will involve developing the AI ecosystem in collaboration with Singapore’s Global Finance and Technology Network (GFTN).

  • Government employees and pensioners: Benefit from increased DA and DR.
  • Urban local body employees: Expect financial progress from the career progression scheme.
  • Female students: New opportunities from the startup challenge and PhD fellowship.
  • Youths and students: Training opportunities in new technologies and skills through the AI mission.

The Bihar government’s decision to increase DA and DR before Chhath Puja is significant for millions of employees and pensioners. The DA/DR under the 7th Pay Commission has been raised from 60% to 63%, with new rates effective from July 1, 2026. Alongside this, the government has also made substantial investments in women’s education, startups, and artificial intelligence sectors. In the coming days, employees and pensioners will be keenly observing when the payment of the increased DA and the process related to arrears will commence.