The Bihar government has authorised an increase in the Dearness Allowance (DA) and Dearness Relief (DR) for state employees and pensioners. The decision was made at a cabinet meeting held on Friday. Chief Minister Nitish Kumar chaired the meeting. According to Additional Chief Secretary (Cabinet Secretariat S Siddharth, the revised tariffs would take effect on January 1, 2025. The modification will help over 5 lakh employees and over 6 lakh pensioners in Bihar.
Revised DA and DR Rates Across Pay Commissions
Under the 7th Pay Commission, DA and DR shall be paid at 55 per cent. This represents a 2-percentage-point increase above the prior rate.The DA and DR for those covered by the Sixth Pay Commission have been increased by six percentage points. This increases their overall DA and DR to 252 per cent. Beneficiaries of the Fifth Pay Commission will see an 11 percentage point raise. This increases their DA and DR to 466 percent.
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What is Dearness Allowance?
Dearness Allowance is sometimes known as cost-of-living adjustment. It is given to government employees and retirees to assist them cope with rising prices and inflation. DA and DR are calculated as a proportion of base salary or pension. The government revises interest rates on a regular basis to keep up with inflation.
Supreme Court Issues Order to West Bengal Government
In a related event, the Supreme Court ordered the West Bengal government to pay 25 per cent DA to state employees. Justice Sanjay Karol and Sandeep Mehta issued the order. The payment needs to be made within three months. The proceedings on the subject are set to take place in August.
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Dispute Over DA Parity in West Bengal
The dispute began when certain West Bengal state employees sought the same DA as central government employees. They also demanded arrears and filed a petition in the Calcutta High Court. In the hearing held in May 2022, the High Court favoured the employees. The court ordered the state government to pay DA at the central government rate. In November 2022, the West Bengal government challenged the ruling to the Supreme Court.
Gap in DA Rates Continues
Currently, central government employees receive 55 per cent DA. In contrast, West Bengal employees receive only 18 per cent. This follows a 4 per cent increase in DA by the state government on April 1, 2025.The large gap of 37 per cent has caused dissatisfaction among state employees, who continue to demand parity.
