The Nitish Kumar-led Bihar government has announced several significant benefits for government employees, pensioners, and various other sections ahead of the Chhath Puja festival, with decisions approved during a landmark cabinet meeting that cleared 129 proposals in total.
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Dearness Allowance Hike: 3% Increase
The state government has increased the Dearness Allowance (DA) for government employees and pensioners from 55% to 58%, representing a 3% hike. This increase, effective from July 1, 2025, mirrors the central government’s decision and provides relief to employees and pensioners during the festive season.
Deputy Chief Minister Samrat Choudhary, who heads the Finance Department, described this as a “festival gift” ahead of Diwali and Chhath Puja. The move will benefit more than 5 lakh government employees and over 6 lakh pensioners across Bihar. The state government will bear an additional financial burden of Rs 917.78 crore during the current financial year 2025-26 due to this decision.
October Salary Advance Payment
In another significant decision approved by the Election Commission, the Bihar government announced that all state government employees and pensioners will receive their October 2025 salaries in advance, starting from October 21, 2025. This early disbursement was specifically timed to help employees manage increased household expenses during Diwali and Chhath Puja festivals.
The Finance Department issued instructions to all departments to ensure timely payment without any delays, with all technical and administrative arrangements completed. Officials emphasized that this advance payment fully complies with the Model Code of Conduct, ensuring no political advantage is derived from the decision.
Scholarship Benefits Doubled for Students
The cabinet also approved doubling the scholarship amounts under the Chief Minister’s Balak/Balika Scholarship Scheme, benefiting students from Classes 1 to 10:
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Classes 1-4: Increased from Rs 600 to Rs 1,200 annually
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Classes 5-6: Increased from Rs 1,200 to Rs 2,400 annually
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Classes 7-8: Increased from Rs 1,800 to Rs 3,600 annually
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Classes 9-10: Increased from Rs 1,800 to Rs 3,600 annually
This measure will result in an additional annual expenditure of approximately Rs 99.21 crore and aims to encourage students from economically weaker backgrounds to continue their education.
Additional Benefits and Announcements
The comprehensive cabinet meeting approved several other welfare measures:
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ANM Workers: Monthly honorarium for contractual Auxiliary Nurse Midwife workers in urban areas increased from Rs 11,500 to Rs 15,000, with a 5% annual increment provision
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National Health Mission: 10% incentive increase for all contractual workers under the National Health Mission
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Unemployed Graduates: Rs 1,000 monthly allowance for two years under the ‘Mukhyamantri Nishchay Swayam Sahayta Bhatta Yojana’ extended to unemployed graduates
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Law Graduates: New lawyers registered after January 1, 2024, will receive Rs 5,000 monthly stipend for three years
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Bihar Film and Theatre Institute: Establishment approved to provide institutional training in film and theatre arts
These announcements come ahead of the Bihar Assembly elections scheduled for November 6 and 11, 2025. Political observers view these measures as strategic moves by the ruling NDA government to consolidate support among nearly half a million state employees, lakhs of pensioners, and students’ families before the polls.
The timing of these benefits—particularly the salary advance and DA hike implementation—demonstrates the government’s commitment to providing financial relief during the important festive season while also potentially influencing electoral dynamics in the upcoming state elections.
