Every 10 years, a new pay commission is set up to update the pay, allowances, and pensions of central government employees. The 8th Pay Commission is expected to come into effect from January 1, 2026, impacting more than 50 lakh employees and 65 lakh pensioners.
But this time, beyond the usual fitment factor (which decides how much your basic pay increases), there’s something far more radical being discussed—a complete merger of pay levels.
What Does the 8th Pay Commission Level Merger Proposal Actually Mean?
Currently, the 7th Pay Commission’s pay matrix has multiple levels—each representing a different salary grade. However, a proposal has been submitted to combine the first 6 levels into just 3 new ones. If this happens, it will:
- Simplify the pay structure
- Raise the starting salary for many
- Speed up promotions
- Eliminate overlaps and confusion in the current system
The Proposed Merger: What Will the New Levels Look Like?
Here’s how the current levels might be merged:
| Current Levels | Proposed New Level |
|---|---|
| Level 1 + Level 2 | New Level A |
| Level 3 + Level 4 | New Level B |
| Level 5 + Level 6 | New Level C |
This means fewer steps between promotions, and a higher starting salary for many employees.
How It Could Boost Your Salary in One Go
Let’s look at a real example:
- Current Level 1 basic pay: ₹18,000
- Current Level 2 basic pay: ₹19,900
If these merge into New Level A, the starting pay will likely be ₹19,900 or even more (possibly ₹21,700). So if you’re currently earning ₹18,000, your basic salary could jump significantly—instantly.
The same logic would apply to other merged levels:
- Level 3 (₹21,700) → merged with Level 4 (₹25,500)
- Level 5 (₹29,200) → merged with Level 6 (₹35,400)
That’s a huge one-time raise for anyone at the lower end of the scale.
Promotion Path: Faster, Smoother, and More Rewarding
Right now, employees need to climb many small steps before a meaningful promotion. That often means waiting years. But with fewer and broader levels, you’ll move up faster.
- Less Waiting: With fewer levels, each promotion covers more ground.
- Better Titles & Roles: Merged levels mean greater responsibilities and improved professional standing.
- Smoother Career Growth: No more confusion between close-level jumps.
Why This Could Eliminate Salary Disparities
One common complaint among employees is the tiny difference in pay between adjacent levels, despite major role changes. Merging pay levels can streamline the salary matrix, creating a more logical structure and reducing inconsistencies.
Who Benefits the Most?
This change would mostly benefit employees currently in:
- Level 1
- Level 3
- Level 5
These are the pay grades that will jump into higher levels if the merger happens, leading to immediate pay increases and faster promotions.
But There Are Challenges Too
This is a bold and attractive idea—but not without hurdles:
1. Government Budget Impact
Upgrading millions of salaries in one go would require a significant financial commitment from the government.
2. Seniority Concerns
Merging levels could lead to confusion about who’s senior to whom, especially between two merged categories.
The government is reportedly reviewing all aspects carefully, and the 8th Pay Commission’s final recommendations will make things clear.
Why This Proposal Matters
This time, it’s not just about adding a few thousand rupees to the monthly pay. It’s about redesigning the pay ladder itself—making it fairer, simpler, and faster.
If accepted, this proposal could:
- Boost morale for lower-level employees
- Encourage talent to stay in government roles longer
- Make promotions feel more meaningful and timely
FAQs: What You Need to Know
Q1: When will the 8th Pay Commission be implemented?
It is expected to take effect from January 1, 2026.
Q2: What is a level merger?
It means combining two or more existing salary levels into a single, higher-level structure.
Q3: Who stands to benefit most?
Employees in entry-level grades (like Level 1, 3, or 5) may see the biggest one-time salary jumps.
Q4: Will promotions become faster?
Yes. With fewer steps in the ladder, promotion timelines could shorten.
Q5: Is the level merger plan confirmed?
No, it is still a proposal under discussion. The final call will be taken based on the 8th Pay Commission’s report.
