The Bihar government, led by Chief Minister Nitish Kumar, brought welcome news on Friday, October 3, 2025, announcing a substantial 3% increase in dearness allowance for all state government employees and pensioners. This significant announcement comes just weeks before the expected declaration of the Assembly elections in the state.
Deputy Chief Minister Samrat Choudhary, who also oversees the Finance Department, referred to this hike as a “festival gift.” He stated that this generous move would incur an additional expenditure of ₹917.78 crore for the state treasury during the current financial year.
Choudhary explained that this increase aligns with the Union government’s recent decision for central government employees, raising the Dearness Allowance from 55% to 58%.
He further confirmed that the new Dearness Allowance rate would be effective from July 1, matching the implementation date for Central Government employees and pensioners.
“Our state government is dedicated to offering financial relief to its vast number of employees and pensioners, ensuring they are cushioned against rising prices. This is truly a timely gift, arriving just before the festive seasons of Diwali and Chhath,” he added.
Officials estimate that this hike will positively impact over five lakh government employees and more than six lakh pensioners across Bihar.