In a significant move benefiting Bihar’s state employees and pensioners, the government has sanctioned a 2% hike in Dearness Allowance (DA), elevating it from 58% to 60%. The decision, made during a cabinet meeting led by Chief Minister Samrat Choudhary, encompasses a total of 18 agenda items. The revised DA, effective from January 1, 2026, will reflect its financial impact starting June.
Around 9 lakh government employees and pensioners are set to receive the augmented allowance along with arrears for the preceding four months. Employees under the 6th Central Pay Commission will now be entitled to DA at 262%, up from 257%. Similarly, those under the 5th Central Pay Commission will observe a rise to 483%, up from 474%.
Approximately 9 lakh employees and 3.5 lakh pensioners throughout Bihar will benefit from this decision, including personnel from municipal bodies, district councils, and various boards and corporations. Employees with a basic pay of Rs 27,000 will witness an increase of about Rs 540, while higher-income employees could see a hike of up to Rs 4,500. Pensioners, on the other hand, are expected to receive an additional Rs 200 to Rs 2,000.
The approval of the DA increment is attributed to the escalating inflation rates. However, experts opine that this move may not substantially enhance market demand. While government employees stand to gain, individuals in the private and unorganized sectors may continue to experience the inflationary pressures.
In a parallel development, the Bihar government has greenlit an educational initiative by establishing the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) in Vaishali district. The Union Ministry of Food Processing Industries is set to receive 100 acres of land at no cost for this purpose. Additionally, the state has introduced the Chief Minister’s Bihar Environment-Friendly Transport Employment Scheme, aiming to boost electric vehicle adoption with a target of achieving a 30% EV share in total vehicle sales by 2030.
