Section 123(2) in The Navy (Pay And Allowances) Regulations, 1966
(2)Short Service Commission Officers of the Indian Navy shall, during special leave and leave on termination of engagement, be entitled to full pay of the rank held on the date of proceeding on leave.Explanation. - Officers who obtain employment, private or Government, during the terminal leave, shall be admitted one-half of their normal leave emoluments from the date of such employment.Computation of Leave Allowances