Bihar DA Rises to 63%: Does Your Pay Change Now?

Bihar raised Dearness Allowance from 60% to 63% for state employees and pensioners under the 7th Pay Commission, effective July 1, 2026. If you work for the Bihar state government or receive a state pension, your monthly take-home just went up — retrospectively.

Here's what happened: Bihar government raised Dearness Allowance and Dearness Relief by 3 percentage points to 63% of basic pay, effective retrospectively from July 1, 2026.. The hike applies to state government employees and pensioners covered under the 7th Pay Commission framework — not central government staff.. Because the revision is backdated, eligible employees will receive arrear payments covering the months since July 1, 2026, in addition to a higher monthly salary going forward..

What you should do: Check your salary slip for the revised DA component and confirm your employer has applied the 63% rate from July 2026 — errors in arrear calculations are common.. Calculate whether the lump-sum arrear payment will push your total FY2026-27 income past a tax slab boundary, and update your TDS declaration (Form 12BB) with your employer accordingly.. If you are a Bihar state pensioner, verify your revised pension credit in your bank account and contact your treasury office if the DR update has not reflected within 30 days..

Arrear income received in one financial year is taxable in that year — file Form 10E before submitting your ITR to claim tax relief under Section 89(1) and avoid paying excess tax on the lump sum.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.