Patna: Government employees and pensioners in Bihar may soon receive a 2% increase in dearness allowance (DA), a move that would raise the rate under the 7th Pay Commission to 60%, aligning it with current central government levels.
The proposed revision would extend benefits to more than 10 lakh state employees, pensioners and family pensioners, and is expected to follow the central government’s recent adjustment of DA by 2% effective from January this year. Bihar typically mirrors central government decisions on dearness allowance, which is revised twice a year based on changes in the All India Consumer Price Index.
If approved, this would mark the latest in a series of incremental increases. Employees in Bihar under the 7th Pay Commission have been receiving 58% DA since July 2025, following an earlier rise from 55%. A further 3% increase was implemented in October 2025, ahead of the state assembly elections, adding an estimated Rs 918 crore to the state’s annual expenditure.
A 2% increase now would place an additional financial burden of around Rs 1,100 crore on the state exchequer, according to estimates. The Bihar government, which depends significantly on central grants, has faced repeated pressure on its revenue expenditure due to such periodic revisions.
Officials and policy observers note that dearness allowance adjustments, while intended to offset inflation and protect real incomes, have become a growing fiscal commitment for states with large public sector workforces. Bihar’s employee base alone exceeds 10 lakh individuals, amplifying the impact of even marginal percentage increases.
The central government’s DA structure serves as a benchmark for most states. However, variations exist depending on the pay commission applicable. In Bihar, employees under the 6th Pay Commission have been receiving DA at 257%, while those under the 5th Pay Commission currently receive 474%. These rates reflect accumulated adjustments over time, applied biannually in January and July.
If implemented, the latest increase could be among the final revisions under the 7th Pay Commission framework, as the 8th Pay Commission is expected to take effect in the coming period, potentially resetting salary and allowance structures.
While the government has not yet formally announced the hike, expectations have grown following the central government’s precedent and Bihar’s consistent alignment with those decisions in previous cycles.
