In a major relief for government employees and pensioners, the Bihar government has approved a 2% increase in Dearness Allowance (DA), raising it from 58% to 60%.
The decision was taken during the first meeting of the newly expanded Bihar Cabinet led by Chief Minister Samrat Choudhary.
According to reports, nearly 9 lakh state government employees and pensioners will benefit from the move.
What the DA Hike Means for Employees
A Dearness Allowance hike directly increases the monthly salary of government employees because DA is calculated as a percentage of basic pay.
With the new revision, employees will see a higher take-home salary every month.
For example:
If Basic Pay Is ₹30,000
DA at 58%: ₹17,400
DA at 60%: ₹18,000
Monthly increase: ₹600
If Basic Pay Is ₹50,000
DA at 58%: ₹29,000
DA at 60%: ₹30,000
Monthly increase: ₹1,000
The actual increase will depend on an employee’s pay scale and basic salary.
Pensioners Will Also Benefit
The benefit is not limited to working employees.
Pensioners receiving Dearness Relief (DR) will also get higher monthly pension payouts because DR is linked to the same percentage increase.
This is expected to provide some financial relief at a time when rising prices continue to affect household expenses, especially healthcare and daily essentials.
What Is Dearness Allowance?
Dearness Allowance, or DA, is an extra amount paid to government employees to help offset the impact of inflation.
Similarly, pensioners receive Dearness Relief (DR), which serves the same purpose after retirement.
Since inflation affects the cost of living, DA and DR are revised periodically by governments.
Bihar’s DA Now Matches the Centre
Bihar’s latest move comes shortly after the central government also increased DA by 2%.
Last month, the Centre raised Dearness Allowance and Dearness Relief from 58% to 60% for central government employees and pensioners.
That decision benefited nearly 1.2 crore central government employees and retirees across the country.
With this latest revision, Bihar’s DA rate is now in line with the Centre’s current level, although implementation timelines and pay structures may vary between governments.
