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:

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:

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.