8th Pay Commission: Dearness allowance may reach 66%-67% four months before the 8th CPC deadline. Here's how

Four months before the 8th CPC's deadline, the dearness allowance (DA) for central government employees is expected to reach 66% or 67% of basic pay under the currently applicable 7th CPC formula.

This article explains the calculation

While the AICPI-IW values for the remaining months of 2026 are not yet available, an estimate can be made assuming that the index remains the same for the months till December 2026.

As per the 7th CPC, DA is calculated using the following formula:

For DA hike from January 1, 2027, AICPI-IW data from January 2026 to December 2026 will be required. While we have data till July 2026, let's calculate assuming the AICPI-IW remains unchanged till December.

The last 12 months' average AICPI-IW is 151.2. We can put this in the formula to find the DA expected from January 1, 2027:

Here's a step by step calculation:

The above calculations hints at a 3.91% DA hike. However, the government usually rounds off the digits after the decimal point to the nearest lower value. This means the expected DA hike could be 3%, taking the total to 66%. However, it can reach 67% also if there is a further increase in AICPI-IW or if the government rounds off the calculated DA to nearest zero.