Don't be short sighted. It is but another step forward.

Let me share with you my journey. Long ago (in fact 30 years ago), in the CS, promotion exercise came once every 2 years. If you were not short listed for that year's promotion for whatever nonsense reason your boss dreamt up, it meant waiting for 2 years for the next exercise. Then after many of us left the CS, they decided to implement intermediate grades and decentralise junior promotions to the respective ministries to enable more upward mobilty. Promotion exercises then became yearly affairs. Even then promotion was slow and increments were low.

More left, and fewer joined the CS, again they introduced even more intermediate grades so that staff can feel that they are moving up every 2 years or so. Because of the many intermediate grades, the increments also got lowered/divided.

So be happy / glad that you are at least moving up.