Section 128(3) in The Navy (Pay And Allowances) Regulations, 1966
(3)Increments on the new scale shall be given on the date on which they would have become due under the scale applicable immediately before discharge or release, except in those cases where the individual's initial pay on re-enrolment is equal to or higher than his pay plus one increment under the scale applicable immediately before discharge or release, in which case service for increment on re-enrolment shall count from the date of re-enrolment.
