Big DA hike in works for Bihar govt staff

There has been no hike in DA for Bihar government employees since January 2020 as part of austerity measures following the outbreak of Coronavirus pandemic, as was the case with central government employees

Bihar government employees are likely to get a substantial hike in dearness allowance (DA), from the existing 17% to 28%, on the lines of central government employees who got the benefit recently effective since July, officials familiar with the matter said.

The hike in DA is expected to cost the state exchequer around ₹2,500 crore, said a senior state official. (Representative image)

They said the state’s finance department has initiated the process to send a proposal to this effect to the state cabinet for approval.

There has been no hike in DA for Bihar government employees since January 2020 as part of austerity measures following the outbreak of Coronavirus pandemic, as was the case with central government employees.

Sources said the enhanced DA, if approved in August, would be effective from July and a month’s arrears would be paid to employees.

The hike in DA is expected to cost the state exchequer around ₹2,500 crore, said a senior state official. “The jump is quite substantial. It will be also be for pensioners.”

Bihar’s total salary bill every month, including regular state government employees, contractual staff , university employees and other ad hoc staff, comes to around ₹4,500 crore.

Officials in the state’s finance department say revenue collections over the last few months have not been very low despite the lockdown while the flow of the central devolutions by way of state’s share in central taxes and GST settlements was good.

When contacted, principal secretary (finance) S Siddharth said he was not aware of any proposal to hike DA.