The Bihar Cabinet has approved an increase in dearness allowance for state government employees and dearness relief for pensioners with effect from July 1, 2026, news agency Press Trust of India reported.The decision was taken at a Cabinet meeting chaired by Chief Minister Samrat Choudhary ahead of Chhath Puja. The Cabinet also cleared schemes for urban local body employees, female students, startups and artificial intelligence training.Under the Finance Department's proposal, dearness allowance and dearness relief under the Seventh Pay Commission structure will rise from 60 per cent to 63 per cent.
For those covered by the Sixth Pay Commission, the rate will increase from 262 per cent to 269 per cent.Employees and pensioners under the Fifth Pay Commission structure will receive an increase from 483 per cent to 497 per cent. A senior Finance Department official told PTI that the revised rates would benefit serving state government employees, pensioners and family pensioners covered under the respective pay structures.
The Cabinet also approved the Modified Assured Career Progression Scheme for regular employees of urban local bodies.According to the Urban Development and Housing Department's approved proposal, the scheme is aimed at providing financial advancement to employees who retire after serving for years in the same post without opportunities for promotion or career progression. The proposal said the decision followed long-standing demands from urban local body employees, who did not have provisions for regular promotions.
An official said the government believed the scheme would improve employees' motivation, efficiency and commitment towards their duties and responsibilities.To promote innovation, entrepreneurship and startup culture among female students in higher educational institutions, the Cabinet approved the Bihar Ki Beti Startup Challenge Scheme. It is intended to help students develop innovative ideas into practical business ventures.The Higher Education Department's approved proposal said the scheme would benefit up to 2,100 female students.
It will operate for four financial years, from 2026-27 to 2029-30, and has received administrative approval of Rs 88.20 crore.The Cabinet also approved the Mukhyamantri Balika PhD Fellowship Scheme to encourage female students to participate in higher education and research.The scheme will operate for four financial years, from 2026-27 to 2029-30. According to the approved proposal of the Department of Youth, Employment and Skill Development, it is expected to increase women's overall enrolment in higher education and help female students benefit from it.The Cabinet cleared the Information Technology Department's proposal to establish the Bihar Artificial Intelligence Mission, which aims to position the state as a leader in artificial intelligence.One of its main objectives is to identify leading industries and institutions in the sector and involve them in developing an AI ecosystem in Bihar.According to the approved proposal, Singapore-based M/s Global Finance and Technology Network has been selected through nomination to strengthen Bihar's artificial intelligence ecosystem, skill development and innovation.With support from GFTN, the National University of Singapore-Asian Institute of Digital Finance and the Lynx Foundation, an advanced five-month AI certification programme will be conducted.A total of 7,000 undergraduate and postgraduate students from science, technology, engineering and mathematics, as well as other disciplines, will be trained over five years.An official told PTI that an AI and quantum-enabled digital testing platform, called the Aryabhata Technology Observatory, would also be established through GFTN.The official said startups, entrepreneurs, students, researchers and government officials would be provided with digital tools and infrastructure, including AI and machine learning interfaces, data pipelines, an interface for large language models and a cloud-based development platform, to address Bihar's specific challenges.Bihar will also be showcased to global investors, technology companies and policymakers through 12 GFTN platforms, including the Singapore FinTech Festival, Point Zero Forum Zurich, Black Swan Summit, Bangkok Digital Finance Forum and GFTN Forum Japan, the official added.In summary, the Cabinet approved higher dearness allowance and relief for employees and pensioners, career progression benefits for urban local body staff, education and startup schemes for female students, and an artificial intelligence mission that will train 7,000 students over five years.- Ends