DA hike update: After the central government led by Prime Minister Narendra Modi approved the establishment of the 8th Central Pay Commission to revise salaries and benefits for central government employees the central government employees and pensioners are waiting anxiously for the December 2025 inflation data as it will decide the next dearness allowance (DA) hike to be implemented in January 2026. Here are all the details you need to know about the 8th Pay Commission and how much DA hike can be expected. 8th Pay Commission: How much DA hike can be expected? The Centre last revised DA in July 2025 raising it from 55% to 58%. Therefore once the All-India Consumer Price Index for Industrial Workers (AICPI-IW) for December is released nearly 50.14 lakh serving employees and about 69 lakh pensioners will know how much relief they can expect in their salaries and pensions. As per media reports quoting experts a 63% DA hike can be expected. Read more: 8th pay commission update: Over 2.5 lakh employees in trouble as Composed Salary Account will only be applicable to... check details here 8th Pay Commission: Whats the recent update? For a background readers should know that the Union Cabinet had earlier approved the terms of reference (ToR) of the Eighth Central Pay Commission which will be headed by Justice Ranjana Prakash Desai a former Supreme Court judge and the chairperson of the Press Council of India. Read more: 8th Pay Commission update: How much arrears might the government pay to central government employees due to implementation delay? 8th Pay Commission: How is DA calculated? DA is calculated using the AICPI-IW numbers issued by the Ministry of Labour and Employment. The index reading for November 2025 stood at 148.2. If the December figure remains unchanged at this level DA is expected to increase by 5 percentage points taking it to 63%. The calculation involves multiplying the 12-month average AICPI-IW by 2.88 subtracting 261.41 and dividing the result by 261.41. Based on current data this formula results in a DA figure of 63% which is 5% higher than the existing rate. What will be the arrears 8th Pay Commission? As per media reports the arrears of the 8th Pay Commission will depend on the final decision and the date of implementation.