Section 128(2)(b) in The Navy (Pay And Allowances) Regulations, 1966
(b)where the Maximum of the scale of pay applicable on re-enrolment is equal to or less than the minimum of the scale applicable immediately before discharge or release and where the minimum and the maximum of the scale applicable on re-enrolment are lower than the minimum and the maximum respectively, of the scale applicable immediately before discharge or release, his pay in the new scale shall be fixed according to the total length of service previously rendered by him in the rate in which he is re-enrolled and in any higher rate held by him under these regulations and his future increments shall be given as from the date fixed on the basis of the said length of service;