Author: Bihar Say | Amrita |

Bihar Government Approves 3% DA Hike

Ahead of the festive season, the Bihar government announced a 3% increase in Dearness Allowance (DA) for state employees and pensioners. This increase, effective July 1, 2025, raises the DA from 55% to 58%.

The cabinet, chaired by Chief Minister Nitish Kumar, approved this step to provide financial relief to over 10 lakh people. The decision covers both government employees and pensioners, easing pressure from rising costs.

Relief for Employees and Pensioners

Deputy Chief Minister Samrat Choudhary, who handles finance, described the hike as a “festival gift” for employees and pensioners.

The increase benefits over 5 lakh employees and 6 lakh pensioners. Moreover, it is expected to support household spending during Diwali and Chhath festivals.

Financial Implications

This DA hike will cost the state exchequer approximately ₹918 crore in the current fiscal year. Therefore, the government demonstrates its commitment to supporting employees and pensioners.

Additionally, this measure will help families manage daily expenses more comfortably.

Scholarships for School Students Doubled

The Bihar government also doubled scholarships for students from Class 1 to Class 8:

• Classes 1–4: ₹1,200 annually (up from ₹600)

• Classes 5–6: ₹2,400 annually (up from ₹1,200)

• Classes 7–8: ₹3,600 annually (up from ₹1,800)

These enhancements aim to encourage education and provide financial support to students from economically weaker backgrounds.

Political Context

While these announcements provide welfare, they also come ahead of the Bihar Assembly elections.

Experts view this as a strategic step to gain support from employees, pensioners, and students’ families. Nevertheless, the government presents it as a financial relief measure rather than a political move.

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Bihar Say is Bihar’s leading apolitical media platform, reshaping the state’s image through stories on culture, business, and grassroots change. Its podcast and video series, BiharCast, highlights untold stories and changemakers from the heart of Bihar.