Bihar Government Hikes DA By 2%, Nearly 9 Lakh Employees And Pensioners To Benefit

Patna: The Bihar government has given a big gift to lakhs of government employees and pensioners of the state. In the first meeting of the Samrat's Cabinet, a 2 percent increase in Dearness Allowance (DA) was approved. Now under the Seventh Pay Commission, DA of salaried employees has been increased from 58 percent to 60 percent. About 9 lakh employees and pensioners will get direct benefits from this decision of the government. The increased DA will be considered effective from January 1, 2026.

Do those with the Seventh Pay Commission benefit the most?

After the cabinet decision, employees and pensioners working under the Seventh Pay Commission will now get 60 percent dearness allowance. Earlier it was 58 percent. The government says that in view of rising inflation, this decision has been taken to maintain the purchasing power of the employees. With the increase in DA, there will be an increase in the salary as well as pension of the employees.

Will DA of 6th and 5th pay commission employees also increase?

Not only the Seventh Pay Commission, but the old pay scale employees have also got relief. Under the Sixth Pay Commission, DA of salaried employees and pensioners has been increased from 257 percent to 262 percent. At the same time, DA of fifth pay commission employees has been increased from 474 percent to 483 percent.

When will the new rates come into effect?

The government has made it clear that the new rates of dearness allowance will be considered effective from January 1, 2026. That means employees and pensioners can also get the benefit of arrears. The Finance Department will soon issue detailed orders for this.

What other major decisions were taken in the cabinet meeting?

A total of 18 agendas were approved in this first cabinet meeting held after the cabinet expansion. These also include approval to take out large-scale loans for the state's development plans. Bihar government has been allowed to take loan up to Rs 72,901 crore during the financial year 2026-27.

Where will such a huge fund be spent?

According to the government, a major part of the loan will be spent on projects related to roads, health, education and infrastructure. In this, Rs 64,141 crore will be raised through market debt. The government claims that this will give impetus to development plans in the state and employment opportunities will also increase.