It’s
204.04(3)(b)…but…
204.04(3) (Rate of pay on promotion) Subject to paragraphs (4) and (5), an officer or non-commissioned member shall be paid, on promotion to a higher rank, at the rate of pay established in the applicable CBI which is the greater of:
- the basic rate of pay for the member's new rank and, if applicable, pay level and trade group; or
- the rate of pay for the pay increment and, if applicable, pay level and trade group, for the member’s new rank that is nearest to, but at least equal to, the sum of the rate of pay the member was receiving on the day before the effective date of the promotion plus an amount equal to the rate of pay established for pay increment 1 minus pay increment Basic in the member’s new rank, but not to exceed the rate of pay for the highest pay increment in the new rank.
Unless you’re a subordinate or junior officer under certain DEO pay levels, then 204.04(4) applies, or in the case of medical officer, medical specialist or dental officer, 204.04(5) applies.
In essence, if your pre-promotion rank PI (final) is greater than any number of Pay Increments at the higher rank, then the Pay Rate is previous Pay Rate at whatever Pay Incentive you were at, plus the difference between PI 1 and PI Basic of the new higher rank. Note this is different than CBI 204.04 prior to 2022 (possibly even earlier,
@dapaterson could dig into DGCB’s pay CBI archives), when the CBI directed pay to skip PI Basic and proceed to start at PI 1 and increase annually thereafter on the anniversary of the promotion effective date. This is because the pay structure previously progressed nearly linearly progressively between successive ranks, unlike now, where many MOSIDs have notably altered and ‘overlapping’ incentive structures across ranks. A Cpt PI 20 PLT earns more than a Maj PI 8. On promotion to Maj PLT, they would get Capt PI 20 + $260 (Maj PLt PI 1 - Maj PLT PI Basic). It’s not just pilots…under CBI 204.218, a max Maj LegO (PI 10) earns more than the first five LCol LegO PIs (Basic-4). 204.04(3) still applies, so on promotion, a 10-year Maj LegO would make PI 10 Maj + PI 1 LCol - PI Basic LCol LegO.
@SupersonicMax, the heart of your question is not explicitly contained in the CBIs to my knowledge, ie. Would a 20-year Capt PLT promoted to Maj start incentives at PI Basic, or at PI 9 (the next increment higher than Capt 20 + Maj 1 - Basic)? I suspect it would be the latter, but as I noted, I don’t see these such cases (in a number of non-GSO/specialist MOSIDs) being explicitly clarified as to Pay Incentive (vice Pay Rate, which IS explicitly stated) start point and progression where pre-promotion pay is higher than post promotion Basic.