Is it Possible to Decrease in Salary on Promotion from Lower to Higher Scale?

Last Updated on January 2, 2023 by Galaxy World

This is a strange question for many people but it is the reality that there may occur a Decrease in Salary on Promotion from Lower to Higher Scale in some cases. Sometimes the promotion of some employees occurs and they face a strange situation of salary fixation. During the fixation of pay from lower to higher pay scales, it was found that the salary of the employee was reduced instead of enhanced in pay and allowances. I shall explain the situation with an example.

Decrease in Salary on Promotion from Lower to Higher Scale

 

Suppose an Employee of BPS-04 was promoted to BPS-05 on 11-12-2022 and he transferred from Lahore to Okara on his promotion/adjustment. We shall here discuss all factors that may be the reason for an increase/decrease in salary these are as under:

  • House Rent Allowance
  • Basic Pay
  • GP Fund Subscription

 

House Rent Allowance

 

The House Rent Allowance in Okara is 30% of the Initial of 2008 Basic Pay Scale plus a 50% increase. On the other way, HRA in Lahore is 45% of the initial basic pay of 2008 basic pay scales plus a 50% increase.  The detail of House Rent Allowance in Special Cities and other cities are as under:

 

Is it Possible to Decrease in Salary on Promotion from Lower to Higher Scale

 

Rates of House Rent Allowance Special Cities and Other Cities
 
BPS Other Cities Special Cities Difference
BPS-01 1337 2006 669
BPS-02 1367 2049 682
BPS-03 1413 2120 707
BPS-04 1458 2187 729
BPS-05 1503 2255 752
BPS-06 1544 2316 772
BPS-07 1589 2384 795
BPS-08 1650 2474 824
BPS-09 1719 2579 860
BPS-10 1781 2670 889
BPS-11 1853 2778 925
BPS-12 1961 2940 979
BPS-13 2091 3135 1044
BPS-14 2214 3321 1107
BPS-15 2349 3524 1175
BPS-16 2727 4091 1364
BPS-17 4433 6650 2217
BPS-18 5810 8715 2905

Basic Pay, HRA, and GP Fund Subscription Difference

 

Other factors that can involve in an increase or decrease in salary are GP Fund Subscription Rates and Basic Pay. Recently Government of Pakistan revised the GP Fund Subscription Rates due to the revision in Basic Pay Scales 2022. If the basic pay of the employees before the promotion was 21950/- the as per the Revised Pay Scales 2022, his new basic pay will be as under:

Description Amount
Pay in BPS-4 21950
Pay in BPS-05 22730
Difference 780
Previous HRA 2187
New HRA 1503
Difference -684
Previous GP Fund Deduction 1230
New GP Fund Deduction 1330
Difference -100
Net Benefit -4

Keeping in view the above calculations we find here the employee will get Four Rupees less on promotion and posting to other cities rather than a special city. This is not always happening but sometimes, so don’t worry about getting a promotion.

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4 thoughts on “Is it Possible to Decrease in Salary on Promotion from Lower to Higher Scale?

  1. Faiq Muhammad khan · Edit

    I m in bps 14 my one of collegue is appointed after three year of my appointment, we and he oppointed on qualifiction of three year diploma base,on that time when he oppinted he is studing in B.Tech which is after diploma and now he trying to cash his b.tech through politically effeliation and by pass us to take next higher grade.in this sitution he is rite or wrong please have any idea to anybody.??

    Reply
    1. Brother DAE Diploma is equal to inter and for educator post 16 year education is compulsory. Your colleague should be appointed on b.tech base.i think its just your miss understanding.

      Reply

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