The Nitish Kumar government in Bihar on Friday announced an additional 3 per cent dearness allowance for employees and pensioners, with weeks left for the announcement of the assembly elections in the state.

Deputy chief minister Samrat Choudhary, who is in charge of the Finance Department, said the "festival gift" from the government would cost the state exchequer an additional Rs 917.78 crore in the current financial year.

"In keeping with the Union government's recent decision for central employees, the state government has also raised Dearness Allowance from 55 per cent to 58 per cent," he said.

Choudhary said the hike will be effective from July 1, the same date as for central government employees and pensioners.

"The state government is committed to providing relief to lakhs of its employees and pensioners so that they do not suffer because of rising prices. It is a gift ahead of Diwali and Chhath," he said.

The hike will benefit more than 5 lakh employees and over 6 lakh pensioners, officials said.

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