8th Pay Commission’s Big Move: Proposal to Merge Pay Levels 1 to 6—What It Means for Central Govt Employees

Kuldeep Singh Chundawat

In a potential game-changing development for central government employees, the upcoming 8th Pay Commission may not only revise salaries and pensions but also restructure the entire pay matrix. A new proposal suggests merging Pay Levels 1 to 6 into just three broader levels, which could significantly boost basic salaries, accelerate promotions, and reduce pay anomalies across departments.

If implemented, this move could benefit over 50 lakh serving employees and 65 lakh pensioners, and redefine career growth opportunities for lakhs in the lower pay bands.

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🔔 When Will the 8th Pay Commission Be Implemented?

Formation Date: Approved by the Union Cabinet on January 16, 2025
Expected Implementation: From January 1, 2026
Will recommend revisions in salary, allowances, and pensions for central government employees and pensioners
Likely to focus on fitment factor, minimum wage, and now, pay-level restructuring

💼 Why Is This Level Merger a ‘Masterstroke’?

The proposed merger suggests reducing six initial levels of the 7th Pay Commission pay matrix into three consolidated levels:

Existing Levels	Proposed Merged Level	Current Starting Basic Pay (7th CPC)
Level 1 + Level 2	New Level A	₹18,000 – ₹19,900
Level 3 + Level 4	New Level B	₹21,700 – ₹25,500
Level 5 + Level 6	New Level C	₹29,200 – ₹35,400

If merged, employees in lower levels could immediately jump to higher basic pay brackets, resulting in a notable increase in take-home salary and benefits.

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📈 Key Benefits of Merging Pay Levels 1 to 6

✅ 1. Higher Basic Salary

Example: If Level-1 and Level-2 are merged into New Level A, the starting pay could be ₹19,900 or even ₹21,700, giving a direct bump of ₹1,900–₹3,700 to Level-1 employees.
Level-5 employees could be upgraded to a pay starting at ₹35,400, if merged with Level-6.

✅ 2. Faster Promotions and Career Progression

Fewer levels mean shorter promotion paths and faster elevation.
Employees can skip one level of hierarchy, accelerating their career ladder.
Promotion-linked pay hikes could be more substantial.

✅ 3. Streamlined Salary Structure & Fewer Anomalies

Reduces salary overlaps and discrepancies between adjacent pay levels.
Easier for departments to manage promotions and postings.
Brings more uniformity across ministries and departments.

📊 What About the Fitment Factor?

The fitment factor plays a crucial role in determining basic pay:

7th Pay Commission Fitment Factor: 2.57
Expected 8th Pay Commission Fitment Factor: 1.92 times over current basic (on a revised scale)

Example: If the basic salary is revised from ₹18,000 to ₹34,560 under the 8th CPC, the merged level concept could amplify this benefit even further.

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⚠️ What Employees Should Know

Still Under Consideration: The proposal to merge pay levels is not yet approved, but high-level discussions are ongoing.
Impact on Pensions: Higher basic pay will also result in higher pensions for retirees.
Watch for Final Report: The full report of the 8th Pay Commission will be released closer to the end of 2025.

🧾 In Summary: What’s Changing?

Feature	7th Pay Commission	Proposed Change in 8th CPC
Pay Levels	1 to 18 (wide range)	Levels 1–6 to be merged into 3
Minimum Basic Pay	₹18,000	Likely to rise to ₹34,000+
Fitment Factor	2.57	May rise to 3.0 or more
Promotion Interval	4–10 years	Could reduce post-merger
Salary Disparity Between Levels	High	Likely to reduce

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Author Profile

Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.