Following a decisive victory in the assembly elections, the Bihar government led by Chief Minister Nitish Kumar has announced a significant financial benefit for state government employees and pensioners. In a cabinet meeting held on Tuesday, the state government approved a proposal to increase the Dearness Allowance (DA) for personnel drawing salaries under the 5th and 6th Pay Commissions.
The cabinet, presided over by CM Nitish Kumar, cleared 19 agendas in total. Among the key decisions was the approval to hike the DA by 8 percent for employees and pensioners under the 5th Pay Commission, and by 5 percent for those under the 6th Pay Commission. These revisions are intended to provide relief against inflation and align state benefits with economic requirements.
Revised DA Rates and Effective Dates
According to the cabinet decision, the new Dearness Allowance rates will be effective retrospectively from July 1, 2025. For employees receiving salaries under the 5th Central Pay Scale, the DA has been increased by 8 percent. Consequently, these employees will now receive a DA of 274 percent, up from the previous 264 percent.
Similarly, employees and pensioners under the 6th Pay Scale will see a 5 percent hike in their allowance. The Cabinet has sanctioned an increase in their DA from 252 percent to 257 percent. Since the implementation date is July 1, 2025, beneficiaries are entitled to arrears for the months of July, August, September, October, and November. The government has clarified that the increased DA and the accumulated arrears will be paid along with the salary for December, which is disbursed in January 2026.
Relief for Retirees and Previous Hikes
In another major decision favoring retired personnel, the cabinet approved a proposal for ‘Notional Increment’ for pension calculations. This benefit applies to government servants who retired between June 30 and December 31, specifically after April 11, 2023. This administrative adjustment is expected to enhance the pension corpus for eligible retirees.
The state government had previously revised allowances in May 2025. At that time, employees under the 6th Pay Commission received a 6 percent hike, while those under the 5th Pay Commission saw an 11 percent increase. Furthermore, prior to the assembly elections in October, the government had already raised the DA for employees under the 7th Pay Commission by 3 percent, taking their total DA to 58 percent. This earlier move benefited approximately 6 lakh employees and 4 lakh pensioners across the state.
