Bihar Cabinet hikes DA for employees to 58 and doubles scholarships for students
Noor Mohmmed
06/Oct/2025

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Bihar Cabinet raises Dearness Allowance for government employees and pensioners from 55% to 58% to offset inflation.
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Scholarships for school students from Classes 1 to 10 are doubled as part of state educational reforms and welfare measures.
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Chief Minister Nitish Kumar chaired the Cabinet meeting where a total of 129 important policy decisions were approved.
In a significant move benefiting both government employees and school students, the Bihar Cabinet has approved a hike in Dearness Allowance (DA) from 55% to 58% for state employees and pensioners. This decision comes amid rising inflation and aims to enhance the financial stability of public sector workers across the state.
Dearness Allowance Hike for Employees and Pensioners
The Cabinet decision to increase DA is aimed at helping employees and pensioners cope with the increased cost of living. The Dearness Allowance, a cost of living adjustment allowance, is calculated as a percentage of the basic salary and is revised periodically. By raising the DA to 58%, up from 55%, the Bihar government ensures that its employees’ income maintains purchasing power despite inflationary pressures.
This move has been widely welcomed by state employees and pensioners, as it directly impacts their monthly earnings. Pensioners, in particular, will benefit from an enhanced monthly pension, providing them with greater financial security. Experts note that such timely adjustments in DA are crucial for maintaining employee morale and welfare in government service.
Doubling of School Scholarships
In addition to the DA hike, the Bihar Cabinet has approved the doubling of scholarships for school students from Classes 1 to 10. This decision aims to promote education, reduce dropout rates, and support financially disadvantaged students in the state. By increasing financial aid, the government intends to encourage higher enrollment, better retention, and academic performance among young learners.
The increased scholarships are expected to cover a larger number of students, thereby strengthening the state’s commitment to education and social welfare. This initiative aligns with Bihar’s broader goals of improving literacy, providing equitable access to education, and empowering children from all socio-economic backgrounds.
Comprehensive Policy Decisions
The DA hike and scholarship enhancements are part of a larger set of 129 key decisions taken by the Bihar Cabinet during a meeting chaired by Chief Minister Nitish Kumar. These decisions cover various sectors, including governance, public welfare, finance, and infrastructure development.
Such comprehensive policymaking demonstrates the government’s focus on employee welfare, education, and socio-economic development. By taking multiple impactful decisions in a single meeting, the Cabinet aims to address the immediate needs of citizens while also setting a roadmap for long-term progress.
Impact on State Employees and Education Sector
The combined impact of the DA hike and scholarship doubling is expected to bring positive outcomes for both government employees and students. Employees will see an increase in disposable income, improving their living standards and economic security. Students, on the other hand, will benefit from increased financial support, which can be used for school fees, educational materials, and other essential needs.
Educational experts note that financial incentives like scholarships not only encourage students to continue schooling but also motivate them to excel academically, creating a long-term benefit for the state’s human capital.
Nitish Kumar’s Leadership and Vision
Chief Minister Nitish Kumar’s leadership has been pivotal in steering these decisions. By focusing on both employee welfare and educational reforms, the government is signaling its commitment to inclusive growth and development. Analysts suggest that such policy measures can strengthen public confidence in the administration and enhance Bihar’s socio-economic indicators.
Conclusion
The Bihar Cabinet’s decision to increase Dearness Allowance from 55% to 58% and double scholarships for Classes 1 to 10 students marks a significant step in supporting employees, pensioners, and young learners in the state. These initiatives, part of 129 key decisions made under the leadership of Chief Minister Nitish Kumar, reflect the government’s focus on social welfare, education, and economic stability.
With these measures, Bihar aims to ensure that public servants and students benefit from financial support, while simultaneously promoting long-term growth and development in the state’s education and governance sectors.
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