Bihar Government Hikes DA to 55% for 7th Pay Commission: Over 11 Lakh Employees and Pensioners to Benefit

The Bihar government has approved a revision in the Dearness Allowance for its employees and pensioners. The announcement came following a meeting of the state cabinet, chaired by Chief Minister Nitish Kumar. This decision reflects the state’s periodic review of allowances in response to inflation and cost-of-living adjustments.

Dearness Allowance Raised to 55% for 7th Pay Commission Beneficiaries

Employees and pensioners who are currently receiving salaries under the 7th Pay Commission structure will now receive an increased Dearness Allowance and Dearness Relief at the rate of 55%. This marks a 2 percentage point rise from the previous rate. The adjustment is intended to offset the rising cost of living and support financial stability for government staff and retirees.

Higher Percentage Increases for Earlier Pay Commissions

For individuals still under the pay structures of earlier commissions, the hike is significantly higher. Those aligned with the 6th Pay Commission will see their DA and DR rise by 6 percentage points, taking the total to 252%. Meanwhile, employees and pensioners under the 5th Pay Commission structure will benefit from an 11 percentage point increase, resulting in a total of 466%.

Read More: Centre Mulls Raising EPS Minimum Pension to ₹3,000 Per Month. 

Beneficiaries of the DA Hike

According to government officials, the hike in Dearness Allowance and Dearness Relief will benefit over 5 lakh government employees and more than 6 lakh pensioners across Bihar. These revisions are part of the government's ongoing efforts to adjust compensation in line with inflationary trends and fiscal policy decisions. It will be effective from January 1, 2025.

Broader Context of the Announcement

Dearness Allowance is a cost-of-living adjustment that is routinely revised by both the central and state governments in India. Such increases are generally linked to changes in inflation and are calculated based on the All India Consumer Price Index. State-level decisions such as this are often aligned with those taken at the central government level, ensuring parity and fairness across public service pay structures.

Conclusion

The recent Dearness Allowance hike by the Bihar government highlights its commitment to protecting the financial well-being of public sector employees and pensioners. With inflation influencing household budgets, such revisions play a crucial role in maintaining the purchasing power of fixed incomes. This move ensures that compensation structures remain responsive to economic realities faced by government workers.

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