7th Pay Commission: Big gift for state government employees in Bihar; DA increased—find out who will benefit..

Ahead of Chhath Puja, in a cabinet meeting held on November 10—chaired by Chief Minister Samrat Chaudhary—the Bihar government approved a 3% increase in Dearness Allowance (DA) for state government employees and Dearness Relief (DR) for pensioners. Consequently, under the 7th Pay Commission, the rate has risen from 60% to 63%. These revised rates will be effective retrospectively from July 1, 2024.

This hike also applies to employees and pensioners covered under older pay structures. Under the 6th Pay Commission, the DA/DR has been increased from 262% to 269%, while under the 5th Pay Commission, the rate has risen from 483% to 497%.

**Understanding the benefit for employees and pensioners**

The additional amount will depend on the individual's basic salary or pension. For instance, an employee with a basic salary of ₹30,000 under the 7th Pay Commission will receive an extra ₹900 per month as DA, increasing the total allowance from ₹18,000 to ₹18,900. Similarly, a pensioner with a basic pension of ₹20,000 will receive an additional ₹600 per month as DR, raising the amount from ₹12,000 to ₹12,600.

Eligible employees and pensioners will also receive the differential amount (arrears) for the period starting from July 1, in accordance with the state's payment procedures.

**Increases in other states as well**

This decision by the Bihar government follows an announcement made by the central government on October 28, which increased the DA for central government employees by 3%. Under that directive, the DA rate has increased from 60% to 63%, effective from July 1, 2024. Similarly, the increase in Dearness Relief (DR) will also benefit central government pensioners.

As for other states, Uttar Pradesh and Uttarakhand have also announced a 3 percent hike in Dearness Allowance (DA), raising the rate from 60% to 63%, effective from July 1, 2026.

Although these recent adjustments have brought the DA rates for these states to a uniform level under the 7th Pay Commission framework, a direct comparison of these rates may not be appropriate, given that salary structures vary across different states.

Dearness Allowance (DA) is provided to government employees to mitigate the impact of inflation on their salaries, while for pensioners, the same purpose is served through 'Dearness Relief' (DR).

These rates are typically revised twice a year, based on changes in the Consumer Price Index for Industrial Workers (CPI-IW).

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.