Ahead of Chhath Puja, the Bihar government has approved a 3 percentage point increase in dearness allowance (DA) for state government employees and dearness relief (DR) for pensioners, taking the rate under the 7th Pay Commission from 60% to 63%.
The decision was taken at a Cabinet meeting chaired by Chief Minister Samrat Choudhary on November 10.
The revised rates will be applicable retrospectively from July 1, 2026.
The increase also covers employees and pensioners under older pay structures. DA/DR under the 6th Pay Commission has been raised from 262% to 269%, while the rate under the 5th Pay Commission has increased from 483% to 497%.
How much will employees and pensioners gain?
The additional amount will depend on basic pay or pension. For instance, an employee drawing a basic pay of ₹30,000 under the 7th Pay Commission will receive ₹900 more in DA every month, taking the allowance from ₹18,000 to ₹18,900.
Similarly, a pensioner with a basic pension of ₹20,000 will receive an additional ₹600 per month as DR, taking the amount from ₹12,000 to ₹12,600.
The revision also makes eligible employees and pensioners entitled to the differential amount for the period starting July 1, subject to the state’s disbursement arrangements.
How does Bihar’s DA hike compare with the Centre and other states?
Bihar’s decision follows the Centre’s October 28 announcement of a 3 percentage point increase in DA for central government employees, taking the rate from 60% to 63% with effect from July 1, 2026. The corresponding DR increase also benefits central government pensioners.
Among other states, Uttar Pradesh and Uttarakhand have also announced a 3 percentage point DA hike, taking the rate to 63% from 60%, with effect from July 1, 2026.
While the latest revisions bring these governments’ DA rates to the same level under the 7th Pay Commission structure, rates across states may not be directly comparable where different pay structures apply.
Dearness allowance is intended to offset the impact of inflation on government employees’ salaries, while dearness relief serves the same purpose for pensioners.
The rates are generally revised twice a year, with reference to changes in the Consumer Price Index for Industrial Workers (CPI-IW).