Section 132(1) in The Navy (Pay And Allowances) Regulations, 1966
(1)A sailor shall, for and from the date he is reduced, disrated or reverted, receive the pay and allowances pertaining to the rate to which he is so reduced, disrated or reverted. On being disrated or reverted, previous service in the rate to which he is disrated or reverted and service in the higher rate or rates shall together be reckoned for fixation of pay in the rate to which he is disrated or reverted.