Bihar Cabinet Raises Seventh Pay Commission DA to 63%; Approves Student and AI Schemes

The news

The Bihar cabinet has raised the Dearness Allowance and Dearness Relief for employees and pensioners under the seventh pay commission from 60% to 63%, effective 1 July 2026. The decision, announced on 12 November 2026 ahead of the Chhath festival, also covers beneficiaries under the fifth and sixth pay commissions. Officials said the revised rates will apply to state government employees, pensioners and family pensioners, and that eligible beneficiaries may receive arrears for the period from July onwards, subject to detailed departmental orders.

At a basic pay of ₹30,000, the increase translates to an additional ₹900 per month, from ₹18,000 to ₹18,900, though actual benefits depend on the individual's basic pay or pension and the relevant pay structure. The cabinet also approved the Modified Assured Career Progression scheme for regular employees of urban local bodies, the Bihar Ki Beti Startup Challenge with an administrative outlay of ₹88.20 crore targeting up to 2,100 women students, the Mukhyamantri Balika PhD Fellowship Scheme, and the Bihar Artificial Intelligence Mission. The AI mission aims to train at least 7,000 students over five years, including a five-month advanced certification programme in collaboration with Singapore's Global Finance and Technology Network and the National University of Singapore-Asian Institute of Digital Finance.

What is the Seventh Pay Commission and when was it set up?

The Seventh Central Pay Commission was constituted by the Government of India in February 2014 to revise the salary structure of central government employees and pensioners. Its recommendations, submitted in November 2015, were accepted and implemented with effect from 1 January 2016. The commission determines the pay matrix, allowances, and the formula for Dearness Allowance, which is revised periodically based on the All India Consumer Price Index. State governments, including Bihar, often adopt the central pay commission's framework with modifications for their own employees. The Dearness Allowance is calculated as a percentage of basic pay to neutralise the impact of inflation.

How does the DA revision work and who is covered?

Dearness Allowance is a salary component designed to offset the impact of rising prices on employees, while Dearness Relief serves a similar purpose for pensioners. The Bihar revision covers beneficiaries under the fifth, sixth and seventh pay commission structures. For seventh pay commission beneficiaries, the increase is three percentage points, not a threefold rise in the allowance. The retrospective effectiveness from July can create an arrears entitlement, subject to applicable rules and payment arrangements.

What do the other cabinet decisions aim to achieve?

The Bihar Ki Beti Startup Challenge seeks to help women students turn innovative ideas into business models, while the Mukhyamantri Balika PhD Fellowship Scheme supports higher education and research; both are planned for FY 2026-27 through FY 2029-30. The Modified Assured Career Progression scheme provides financial advancement to municipal employees when promotion opportunities are limited. The Bihar Artificial Intelligence Mission targets training at least 7,000 students over five years, including STEM and non-STEM undergraduates and postgraduates, in collaboration with Singapore-based institutions.

What are the next steps for implementation?

Implementation requires clear payment instructions for the revised allowances and arrears, along with transparent beneficiary selection for the student schemes. The planned AI programme can be assessed against its five-year training target and participation across streams. Tracking completion and practical outcomes would help evaluate impact.