In a move aimed at bringing financial relief and a festive cheer ahead of Diwali and Chhath, the Bihar Cabinet has approved a significant increase in the Dearness Allowance (DA) for its government employees and pensioners.
The state government announced on Friday, October 3, 2025, that the Dearness Allowance will be increased by 3 percentage points, raising the rate from the existing 55% to 58%.
Key Details of the Hike
New DA Rate: 58%
Previous DA Rate: 55%
Effective Date: The increased DA will be payable with effect from July 1, 2025.
Beneficiaries: The hike applies to all government employees, pensioners, and family pensioners of the state.
Impact and Context
This decision is expected to benefit a large section of the state’s population, including serving and retired personnel, injecting a substantial amount of money into the local economy during the peak of the festive season.The decision was announced by Arvind Kumar Chaudhary, Additional Chief Secretary of the Cabinet Secretariat Department, following a post-Cabinet briefing in Patna.The three-percentage-point increase reflects the state's ongoing efforts to compensate its employees and pensioners for inflation, ensuring that their take-home pay and pension amounts keep pace with the rising cost of living. The timing of the announcement serves as a major financial bonanza just before major festivals, including Diwali and Chhath, offering welcome support to families across the state.