The Bihar Cabinet has approved a 3 percentage point increase in dearness allowance (DA) for state government employees and dearness relief (DR) for pensioners, effective July 1, 2026. It also cleared the Modified Assured Career Progression (MACP) Scheme for regular employees of urban local bodies. The decisions were taken on Tuesday, November 10, at a Cabinet meeting chaired by Chief Minister Samrat Choudhary, days before Chhath.
DA and DR revised across three pay structures
Employees, pensioners and family pensioners under the 7th Pay Commission will see DA and DR rise from 60% to 63%. Those on older pay structures get corresponding increases.
| Pay structure | Previous DA/DR | Revised DA/DR |
|---|---|---|
| 7th Pay Commission | 60% | 63% |
| 6th Pay Commission | 262% | 269% |
| 5th Pay Commission | 483% | 497% |
Announcing the decision at a post-Cabinet briefing, Additional Chief Secretary (Cabinet Secretariat) Arvind Kumar Chaudhary said, “The cabinet has taken a decision to increase DA by three per cent.” He said the hike would add ₹1,080.33 crore to the state’s expenditure, Patna Press reported.
Arrears for July to October will be paid in cash, according to NewsBytes. In practical terms, an employee with a basic pay of ₹20,000 would see monthly DA go from ₹12,000 to ₹12,600.
MACP for urban local body employees
The MACP Scheme gives financial upgrades to employees who stay in the same role for long periods without a promotion. The Urban Development and Housing Department’s proposal said the move follows long-standing demands from urban local body employees, who didn’t have provisions for regular promotions. It said the scheme is meant for employees:
“who often retire after serving for years in the same post” Urban Development and Housing Department proposal, Government of Bihar, via PTI
An official said the government expects the scheme to improve employees’ motivation, efficiency and commitment to their duties.
Schemes for women students
The Cabinet also gave formal approval to two schemes for women in higher education. Both will run for four financial years, from 2026-27 to 2029-30. Chief Minister Choudhary had first launched them on August 26, 2026.
| Scheme | What it offers | Scale |
|---|---|---|
| Bihar Ki Beti Startup Challenge Scheme | ₹50,000 to ₹2 lakh to help women students turn ideas into businesses | Up to 2,100 students; ₹88.20 crore approved |
| Mukhyamantri Balika PhD Fellowship Scheme | ₹10,000 a month for four years | About 1,000 women PhD students |
Bihar Artificial Intelligence Mission
The Cabinet approved the Bihar Artificial Intelligence Mission, with proposed spending of over ₹190 crore. Singapore-based Global Finance and Technology Network (GFTN) has been selected as the partner. Along with NUS’s Asian Institute of Digital Finance and the Lynx Foundation, GFTN will run a five-month advanced AI certification programme for 7,000 STEM and non-STEM undergraduate and postgraduate students over five years.
The mission will also set up an AI and quantum-enabled digital sandbox, the Aryabhata Technology Observatory, intended to support more than 100 startups in the state.
