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This is cursed.

20Week MA now at 32k 👍
Showers feel fukin amazing
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Asking for a demotion in which there is no benefit to the team is unlikely to be received well.
Getting a promotion with no effective pay increase is an issue. I would continue to challenge this or get a different job elsewhere if you can get paid better.
I mean it sounds like you have support but it is not where it counts. Even if they gave you a promotion pay bump, it would be 2 years late.
And it might be just advancing what they would otherwise give you as an inflation adjustment like they did before. It’s an issue of trust.
Usually, promotions mean at least a 10% raise in your base pay, plus your allowances and bonus change when you go from engineer to team lead. You can ask your manager about your current grade pay range. HR often tries to keep employees in the middle so they can adjust raises as needed. Typically, inflation-based raises apply to all employees unless you are an under perfomer or have a bad relation with line manager, which seems odd in your situation. If none of these are making sense to you, its time to start looking outside.
#DTMFA
Look for a new job. Best way to get an increase in pay.
When do the usual compensation discussions happen? I think what you can do is make a case for yourself and schedule a specific cadence with your manager to ask about compensation. In this presentation bring forward all your contributions and the ask.
Sounds like its time to find a company that appreciates your worth
I absolutely agree with you. I would ask for the demotion, there is no reason for you to take on all that extra responsibility. If they say no, I would start looking for something else.
How badly do you want to be unemployed?
A promotion looks really good on your resume. That isn't nothing.