# DA hike formula explained as employees seek overhaul for 8th CPC 2026-08-09T14:30:40+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Nearly 1.15 crore central government employees and pensioners receive dearness allowance (DA), which is revised twice a year based on the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW). The 7th Pay Commission formula uses a base of 261.42 points to calculate the percentage. DA was last hiked 2% in April 2026, bringing it to 60% of basic salary. The All India Defence Employees’ Federation has urged the 8th Pay Commission panel to change the calculation, arguing the current index underweights food and essentials that lower-paid employees spend more on. A second DA hike this year is possible as a 'Diwali gift' around October or November, following a 3% hike in October 2025, but final confirmation depends on AICPI data and government approval. ## Coverage - livemint.com Tags: 7th Pay Commission, 8th CPC panel, AICPI-IW index, DA formula, dearness allowance, government employees Canonical: https://indianopinion.org/da-hike-formula-explained-as-employees-seek-overhaul-for-8th-cpc/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/da-hike-formula-explained-as-employees-seek-overhaul-for-8th-cpc/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.