The Bihar government has announced an increase in Dearness Allowance (DA) and Dearness Relief (DR) for state government employees and pensioners covered under the 5th, 6th and 7th Pay Commission structures. The revised rates will be effective from July 1, 2026, bringing financial relief to serving employees, retired personnel and family pensioners.
The decision was approved during a Bihar Cabinet meeting chaired by Chief Minister Samrat Choudhary, ahead of the Chhath Puja celebrations. According to a PTI report, the state government has revised the allowance rates across all three pay commission categories.
Here is a detailed look at the new DA rates and other important decisions approved by the Bihar Cabinet.
Bihar DA Hike 2026: New Rates Under 5th, 6th and 7th Pay Commissions
The Bihar Finance Department has issued a notification confirming the revised Dearness Allowance and Dearness Relief rates. The changes will apply retrospectively from July 1, 2026.
The revised rates are as follows:
| Pay Commission | Previous DA/DR | New DA/DR | Increase |
|---|---|---|---|
| 7th Pay Commission | 60% | 63% | 3% |
| 6th Pay Commission | 262% | 269% | 7% |
| 5th Pay Commission | 483% | 497% | 14% |
Employees and pensioners covered under the 7th Pay Commission will now receive DA and DR at 63 per cent, compared with the earlier rate of 60 per cent.
Similarly, the allowance for beneficiaries under the 6th Pay Commission has increased from 262 per cent to 269 per cent. Those covered by the 5th Pay Commission will receive 497 per cent instead of 483 per cent.
According to a senior Finance Department official, the revised rates will benefit state government employees, pensioners and family pensioners covered under the respective pay structures.
Bihar Cabinet Approves Career Progression and New Schemes for Female Students
Apart from the DA and DR revision, the Bihar Cabinet approved several proposals related to employee welfare, higher education and entrepreneurship.
One major decision concerns the implementation of the Modified Assured Career Progression Scheme for regular employees working in urban local bodies.
The scheme is intended to provide financial advancement to employees who have spent several years in the same position without receiving promotions or opportunities for career progression. The decision also addresses the long-standing demands of urban local body employees.
According to the government, the initiative is expected to improve employee motivation, efficiency and commitment towards their responsibilities.
The Cabinet also approved the launch of the Bihar Ki Beti Startup Challenge Scheme. Its objective is to encourage female students in higher educational institutions to develop innovative ideas and turn them into business ventures.
The scheme will cover up to 2,100 female students, beginning in the current financial year. It will remain operational for four financial years, from FY27 to FY30.
The Higher Education Department has received administrative approval of Rs 88.20 crore for implementing the programme.
Another important decision is the launch of the Mukhyamantri Balika PhD Fellowship Scheme. The initiative aims to encourage more female students to pursue higher education and research.
The fellowship programme will also operate for four financial years, from FY27 to FY30. According to the approved proposal of the Department of Youth, Employment and Skill Development, the scheme is expected to improve women’s participation in higher education.
Bihar Artificial Intelligence Mission Gets Cabinet Approval
The Bihar Cabinet has also approved the establishment of the Bihar Artificial Intelligence Mission. The initiative, proposed by the Department of Information Technology, aims to position Bihar as a leading state in artificial intelligence.
One of the mission’s key objectives is to bring major AI companies and institutions together to develop a strong technology ecosystem within the state.
For this purpose, Singapore-based Global Finance and Technology Network (GFTN) has been selected to support AI development, innovation and skill-building initiatives in Bihar.
With assistance from GFTN, the National University of Singapore’s Asian Institute of Digital Finance (NUS-AIDF) and Lynx Foundation, the state will introduce an advanced five-month AI certification programme.
The initiative aims to train 7,000 students over five years. Participants will include undergraduate and postgraduate students from both STEM and non-STEM backgrounds.
AI Training, Digital Sandbox and Global Investment Opportunities
The Bihar Artificial Intelligence Mission will also focus on providing access to advanced digital technology and resources.
Through GFTN, an AI and Quantum-enabled Digital Sandbox platform called the Aryabhata Technology Observatory will be established.
The platform will provide startups, entrepreneurs, students, researchers and government officials with access to several technology resources, including:
- AI and Machine Learning (ML) APIs.
- Data Pipelines.
- Large Language Model (LLM) Gateway.
- Cloud Integrated Development Environment (IDE).
These facilities are intended to help develop solutions for challenges specific to Bihar and encourage innovation across different sectors.
The government also plans to showcase Bihar’s technological development to international investors, technology companies and policymakers through 12 global platforms associated with GFTN.
These include the Singapore FinTech Festival, Point Zero Forum Zurich, Black Swan Summit, Bangkok Digital Finance Forum and GFTN Forum Japan.
With these decisions, the Bihar Cabinet has approved initiatives covering employee benefits, women’s education, startup development and artificial intelligence alongside the latest DA and DR increase.
Disclaimer: This article is intended for general informational purposes only and is based on the government decisions and information provided in the source report. DA and DR rates, scheme eligibility, financial allocations and implementation dates are subject to official notifications and government guidelines. Employees and pensioners should refer to the Bihar Finance Department and relevant government departments for confirmed details.