In a move that is expected to significantly impact over a crore of its citizens, Bihar Chief Minister Nitish Kumar has announced a substantial hike in the monthly pension provided under the state's Social Security Pension Scheme. The decision, revealed on Saturday, June 21, 2025, will see the monthly pension amount increase from Rs 400 to Rs 1,100, benefiting elderly individuals, disabled persons, and widowed women across the state.

The revised pension amount is slated to take effect from July 2025, with the first payments at the increased rate scheduled to be disbursed directly to the beneficiaries' accounts by the 10th of the month. The decision is set to impact a staggering 10,969,255 beneficiaries throughout Bihar.

The Chief Minister emphasized the importance of ensuring a dignified life for the elderly population, stating, "The elderly are a precious part of society, and ensuring their dignified living is our top priority. The state government will continue to make efforts in this direction."

This announcement comes at a crucial time, with the Bihar Assembly elections on the horizon. Political analysts are viewing this decision as a strategic move by the Janata Dal (United) and its allies in the National Democratic Alliance (NDA) to consolidate their position ahead of the polls. The increase in pension is likely to resonate positively with a large segment of the population, potentially influencing voter sentiment in favor of the ruling coalition.

In addition to the pension hike, the Bihar government has also implemented revisions to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Village heads (mukhiyas) are now authorized to independently approve schemes worth up to Rs 10 lakh, doubling the previous limit of Rs 5 lakh. This measure aims to empower local leaders and expedite the implementation of rural development projects.

Earlier in May 2025, the Bihar government authorized an increase in the Dearness Allowance (DA) and Dearness Relief (DR) for state employees and pensioners. The revised tariffs, effective from January 1, 2025, will benefit over 5 lakh employees and over 6 lakh pensioners in Bihar. For employees and pensioners under the 7th Pay Commission, the DA and DR have been increased to 55%, a 2 percentage point increase. Those under the Sixth Pay Commission will see a 6 percentage point increase to 252%, while those under the Fifth Pay Commission will receive an 11 percentage point increase, bringing their total to 466%.