This paper proposes a peak to average power ratio (PAPR) reduction companding scheme for single carrier frequency division multiple access. The proposed technique has multi-level compression (MLC) stages where a signal is adjusted according to its instant value with respect to these levels. To validate MLC function, PAPR, bit error rate (BER), average power (P_av), and power spectral density (PSD) are evaluated throw simulation. MLC improved PAPR significantly with low BER degradation. Using 16-QAM, MLC enhances PAPR by 4.38 dB while only 1.6 dB additional SNR is required to maintain 10^(-3) BER. MLC performance is compared with the recent companding techniques; Mu-law, Exponential, Trapezoidal, and tangent rooting. The BER simulation results show the superiority of MLC over these techniques. For PAPR reduction, different from other techniques, both Mu-law and MLC reduce PAPR significantly with close values. Finally, the Exponential and MLC preserve P_av with less side lobes in PSD.