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

Updated: 16-06-2025, 06.49 PM

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.

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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.

🔔 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.

📈 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.

⚠️ 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

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.