Section 128(2) in The Navy (Pay And Allowances) Regulations, 1966
(2)The pay of a sailor on re-enrolment shall he fixed in the following manner: -(a)where the minimum of the scale of pay applicable to the rate in which he is re-enrolled is equal to or higher than the maximum of the scale applicable to the rate held by him immediately before discharge or release, his pay on such re-enrolment shall he fixed at the minimum of the new scale; and service for purpose of increments shall reckon from the date from which he is brought on to that scale;(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;(c)in all cases other than those covered by clauses (a) and (b), if the scale applicable immediately before discharge or release, his pay in issue under the scale applicable immediately before discharge or release, his pay on re-enrolment in the new scale shall be fixed at the figure; if the scale applicable on re-enrolment does not include such figure, his pay shall be fixed at the next figure above, or, if there is no figure above, at the maximum of the new scale.