Section 4. Adjustment of Base Pay Rates. —

The adjustment of the monthly base pay of any uniformed member of the Integrated National Police in accordance with the preceding section shall be governed by the following guidelines:

1. When the monthly pay received by an INP member prior to the effectivity of this Act is higher than that prescribed herein for the same grade, the former rate shall continue to be received by him as long as he holds the same grade.

2. When any member is promoted, he shall receive the base rate for his new grade, unless the base pay he received prior to the effectivity of this act is higher than the base pay rate for his new grade, in which case he shall continue to receive his base pay when promoted.

3. When any member is demoted for cause, he shall receive the base pay rate corresponding to the base pay rate prescribed for his new grade.

4. Municipalities and cities capable of increasing the current gross pay of Cadet, Sergeant, Corporal, Patrolman First Class and Patrolman Fireman are hereby authorized to grant allowances.