In a move that will directly affect thousands of government employees and retirees, the Bihar Cabinet has approved a 3 per cent increase in dearness allowance (DA) and dearness relief (DR), effective 1 July 2026. The revision is expected to enhance take-home pay for serving employees while providing additional financial support to pensioners and family pensioners amid rising living costs.
Under the revised rates, employees and retirees covered by the 7th Pay Commission will see DA/DR rise from 60 per cent to 63 per cent. Those under the 6th and 5th Pay Commission structures will also receive corresponding increases. The decision comes ahead of the festive season and is likely to improve employee sentiment across the state workforce.
Beyond compensation, the Cabinet has also addressed a long-standing concern around career stagnation. It approved the implementation of the Modified Assured Career Progression (MACP) Scheme for regular employees of urban local bodies. The scheme is designed to provide financial progression to employees who spend years in the same role without promotion opportunities.
The move acknowledges a critical workforce challenge: employees who lack advancement opportunities often experience lower motivation and engagement. By linking service tenure to financial progression, the government aims to strengthen morale, productivity and retention.
The Cabinet also approved a series of talent-development initiatives focused on future workforce readiness. These include a startup-support programme for women students, a PhD fellowship scheme to encourage higher education among women, and the Bihar Artificial Intelligence Mission.
As part of the AI initiative, 7,000 students will receive advanced AI training over the next five years, creating a stronger pipeline of future-ready talent for the state’s emerging digital economy.
