aix1420

I have the same problem, The parmalinks are working fine on my website, but not working on sub-directory named it demo. My nginx.conf file is as below :
Can anybody help me to resolve it

# For more information on configuration, see:
#   * Official English Documentation: https://nginx.org/en/docs/
#   * Official Russian Documentation: https://nginx.org/ru/docs/

user
nginx;

worker_processes  4;

error_log  /var/log/nginx/error.log;

#error_log  /var/log/nginx/error.log  notice;
#error_log  /var/log/nginx/error.log  info;

pid        /var/run/nginx.pid;

events {
    worker_connections  1024;
}

http {
    include       /etc/nginx/mime.types;
    default_type  application/octet-stream;

    log_format  main  '$remote_addr - $remote_user [$time_local] "$request" '
                      '$status $body_bytes_sent "$http_referer" '
                      '"$http_user_agent" "$http_x_forwarded_for"';

    access_log  /var/log/nginx/access.log  main;

    sendfile        on;
    #tcp_nopush     on;

    #keepalive_timeout  0;
    keepalive_timeout  65;
    keepalive_disable msie6;

    #gzip  on;
gzip on;
	gzip_disable "msie6";

	gzip_vary on;
	gzip_proxied any;
	gzip_comp_level 3;
	gzip_buffers 16 8k;
	gzip_http_version 1.1;
	gzip_types text/plain text/css application/json application/x-javascript text/xml application/xml application/xml+rss text/javascript;

	geoip_country  /etc/nginx/geodata/GeoIP.dat;
	geoip_city     /etc/nginx/geodata/GeoLiteCity.dat;    

    # Load config files from the /etc/nginx/conf.d directory
    # The default server is in conf.d/default.conf
    include /etc/nginx/conf.d/*.conf;

}

# worker_processes 1;
# events {
#	worker_connections  1024;
# }
http {
	include       mime.types;
	default_type  application/octet-stream;
	log_format main '[$time_local] $remote_addr - $remote_user - $server_name  to: $upstream_addr: $request upstream_response_time $upstream_response_time msec $msec request_time $request_time status $status bytes $body_bytes_sent';
	#Uncomment to debug rewrite rules
	#rewrite_log  on;
	server {
		ssl_protocols TLSv1 TLSv1.1 TLSv1.2;

		listen       81;
		server_name  test1.com;
		access_log  /var/log/nginx/test1.access.log  main;
		# access_log  logs/test1.access.log  main;
		#Uncomment to debug rewrite rules
		#error_log    logs/rewrite.log notice;
		root /usr/local/test1;
		index index.php;

		# WORDFENCE FALCON ENGINE CODE
		#Match on gzip first because ordering matters.
		location ~ "/site/wp-content/wfcache/.*gzip$" {
		    gzip off;
		    types {}
		    default_type text/html;
		    add_header Vary "Accept-Encoding, Cookie";
		    add_header Content-Encoding gzip;
		}
		#If the previous matched, the following location won't be executed.
		location ~ /site/wp-content/wfcache/.* {
		    add_header Vary "Accept-Encoding, Cookie";
		}
		set $wordfenceCacheOn 1;

		#Don't cache form submissions.
		if ($request_method = POST) {
			set $wordfenceCacheOn 0;
		}

		#Allow caching of /?123=123 because this is a common DDoS to override caches.
		if ($query_string !~ "^(?:\d+=\d+)?$") {
		    set $wordfenceCacheOn 0;
		}

		#Only cache URL's ending in /
		if ($request_uri !~ \/$) {
			set $wordfenceCacheOn 0;
		}
		#Don't cache any cookies with this in their names e.g. users who are logged in.
		if ($http_cookie ~* "(comment_author|wp\-postpass|wf_logout|wordpress_logged_in|wptouch_switch_toggle|wpmp_switcher)") {
		    set $wordfenceCacheOn 0;
		}
		set $wordfenceEncoding "";
		#Oh, you want gzipped content?
		if ($http_accept_encoding ~ gzip) {
		    set $wordfenceEncoding _gzip;
		}
		set $wordfenceHTTPS "";
		if ($scheme = 'https'){
			#If you want to ENABLE HTTPS caching, comment out the next line.
			set $wordfenceCacheOn 0; #Comment this line out to enable HTTPS caching.

			set $wordfenceHTTPS '_https'; #Uncomment this line to enable HTTPS caching.
		}
		#The main purpose of this line is to capture the URL components into variables.
		if ($request_uri !~ "^\/*(?<wfone>[^\/]*)\/*(?<wftwo>[^\/]*)\/*(?<wfthree>[^\/]*)\/*(?<wffour>[^\/]*)\/*(?<wffive>[^\/]*)(?<wfsix>.*)$"){
			set $wordfenceCacheOn 0;
		}
		#If the file doesn't exist then don't serve from cache.
		if (!-f "$document_root/site/wp-content/wfcache/${http_host}_${wfone}/${wftwo}~${wfthree}~${wffour}~${wffive}~${wfsix}_wfcache${wordfenceHTTPS}.html${wordfenceEncoding}") {
		  set $wordfenceCacheOn 0;
		}

		if ($wordfenceCacheOn = 1) {
		    rewrite .* "/site/wp-content/wfcache/${http_host}_${wfone}/${wftwo}~${wfthree}~${wffour}~${wffive}~${wfsix}_wfcache${wordfenceHTTPS}.html${wordfenceEncoding}" last;
		}
		# END Wordfence Rules

		location / {
			try_files $uri $uri/ /index.php?$args ;
		}

		location /demo {
			try_files $uri $uri/ /demo/index.php?$args;
			}

		location ~ .php$ {
			try_files $uri /index.php;
			include fastcgi_params;
			fastcgi_param PATH_TRANSLATED $document_root$fastcgi_script_name;
			fastcgi_pass unix:/var/run/php5-fpm.sock;
		}
	}
}