There may be an increase of two percent in the dearness allowance (DA) of government servants (employees and pensioners) in Bihar. After this increase, DA of government servants covered under the Seventh Pay Commission will increase to 60 percent.
Central government employees are currently getting this much DA and it is believed that this is the last increase in DA, because the recommendations of the Eighth Pay Commission are to come into effect.
In Bihar, government servants working under the seventh pay scale are getting Dearness Allowance (DA) at the rate of 58 percent from July 1, 2025. Earlier this rate was 55 percent.
There will be an additional burden of Rs 1100 crore
It was increased by three percent in October 2025, before the assembly elections. More than 10 lakh government employees, pensioners and family pensioners are getting its benefits. That increase was made in accordance with the Central Government and resulted in an additional burden of approximately Rs 918 crore on the state exchequer.
This time, if there is an increase of two percent, the additional burden may increase by about Rs 1100 crore annually.
It is notable that frequent increases in DA increase the revenue expenditure of the state, especially when the number of employees is 10 lakh. Bihar government is dependent on grants from the Centre, hence this puts additional pressure on the treasury.
Bihar government follows the pattern of the Center
There was a two percent increase in DA at the Center from January this year. Bihar government generally follows the DA pattern of the central government.
However, different rates apply under the Sixth and Fifth Pay Commissions. Government servants falling under the sixth pay scale are getting 257 percent DA from July 1, 2025.
Currently, DA under the Fifth Pay Commission is 474 percent. It is noteworthy that DA increases every six months (January and July) and its basis is All India Consumer Price Index.