Bihar Government Boosts Dearness Allowance Ahead of Chhath Festivities

The Bihar government has announced a substantial increase in the Dearness Allowance (DA) and Dearness Relief (DR) for state government employees and pensioners, effective from July 1, 2026. This decision, made by the Bihar Cabinet under the leadership of Chief Minister Samrat Choudhary, aims to provide financial relief to employees and pensioners ahead of the Chhath Puja festivities, a significant cultural event in the state.

The revised DA and DR rates will apply to employees and pensioners under the 5th, 6th, and 7th Central Pay Commissions (CPCs). According to a notification from the state finance department, the increase is expected to benefit a large number of state government employees, pensioners, and family pensioners. A senior finance department official emphasized that this move is crucial for enhancing the financial stability of those who have dedicated years of service to the state.

The specific percentage increase in DA and DR has not been disclosed in the initial announcement; however, it is anticipated to align with the inflationary trends and cost of living adjustments that have been a concern for many employees and pensioners in recent years.

In addition to the DA hike, the Bihar Cabinet has approved the implementation of the Modified Assured Career Progression (MACP) Scheme for regular employees of urban local bodies. This decision addresses long-standing demands from urban local body employees who have often faced stagnation in their careers without opportunities for promotion.

The approved proposal aims to enhance the motivation and efficiency of these employees, ensuring they are recognized for their years of service. An official from the Urban Development and Housing Department stated, “This decision is aimed at providing financial advancement to employees who often retire after serving for years in the same post without any promotion.”

The Cabinet also introduced several initiatives aimed at empowering women in Bihar. One of the notable schemes is the "Bihar Ki Beti Startup Challenge Scheme," which is designed to encourage innovation and entrepreneurship among female students in higher educational institutions. This initiative will support up to 2,100 female students over the next four financial years, with an administrative budget of ₹88.20 crore allocated for its implementation.

Additionally,, the government has launched the "Mukhyamantri Balika PhD Fellowship Scheme," which aims to increase female enrollment in higher education and research. This scheme will also operate for four financial years, from FY27 to FY30, and is expected to significantly boost the participation of women in academia.

In a bid to position Bihar as a leader in the field of Artificial Intelligence (AI), the Cabinet has approved the establishment of the 'Bihar Artificial Intelligence Mission.' This initiative aims to create a robust AI ecosystem within the state by collaborating with leading industries and institutions in the AI sector.

To facilitate this, the government has partnered with the Global Finance and Technology Network (GFTN) from Singapore, which will assist in developing the AI ecosystem, skill development, and innovation. An advanced five-month AI certification program will be conducted, targeting a total of 7,000 students over five years, encompassing both STEM and non-STEM fields.

The decisions made by the Bihar Cabinet are expected to have a significant impact on the state's economy and social fabric. The DA and DR hike will provide immediate financial relief to thousands of employees and pensioners, enhancing their purchasing power during the festive season. According to ministerial filings,, the career progression scheme for urban local body employees is likely to improve job satisfaction and retention rates among public servants.

The initiatives aimed at empowering women in education and entrepreneurship are also poised to create a more inclusive environment, fostering innovation and economic growth. By investing in the education and skills of women, the government is not only addressing gender disparities but also tapping into a vital resource for the state's development.

The establishment of the Bihar Artificial Intelligence Mission signals a forward-thinking approach to economic development, positioning the state to leverage technology for growth and innovation. As Bihar continues to evolve, these initiatives reflect a commitment to enhancing the quality of life for its residents while fostering a culture of progress and opportunity.