The decision to increase DA was taken at a meeting of state Cabinet presided over by Chief Minister Jitan Ram Manjhi here.
The enhanced DA would be given to state employees and pensioners with effect from July one, 2014, Principal Secretary Cabinet Coordination Brajesh Mehrotra told reporters while briefing about cabinet decisions.
With the increase now the employees would get 107 per cent DA, he said.
There are around 3 lakh state government employees and an equal number of pensioners who would be benefit from today's decision.
The Bihar Cabinet gave its nod to 24 proposals of different departments that were listed for today's meeting.
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