With this, the DA of state government employees and pensioners would go up to 72 per cent of the basic salaries as against 65 per cent earlier, Principal Secretary (Planning and Development) Vijay Prakash told reporters.
The decision was taken at a cabinet meeting presided by Chief Minister Nitish Kumar, he said.
The DA hike would put a burden of Rs 575 crore on the state exchequer, Prakash said.