§ 188. Annual increments; compensation on promotion, demotion, transfer, reclassification, reinstatement or reallocation. 1. Any employee holding a position or employed pursuant to provisions of section one hundred eighty-seven of this chapter shall receive the minimum compensation of the classification or grade to which his position is allocated, plus the number of increments which corresponds with the number of his years of service in such position, unless his service during the year immediately preceding shall have been found to be inefficient and unsatisfactory under regulations issued pursuant to this chapter.

2. Annual increments shall take effect on the first day of each fiscal year, subject, however, to the provisions of section forty-four of the state finance law. The eligibility of an employee to receive such an increment shall be determined in the same manner as the eligibility of an employee in the classified service would be determined under the provisions of subdivision six of section one hundred thirty-one of the civil service law. No employee shall receive an increment which will result in an annual compensation in excess of the maximum established for his position under this article.

3. If any such employee is promoted, demoted, transferred or reinstated, to or in a position included in section one hundred eighty-seven of this chapter, his compensation in the new position shall be determined in the same manner as the salary of an employee in the classified service of the state would be determined under the provisions of section one hundred thirty-one of the civil service law.

4. If the position of any such employee is reallocated, his compensation in the new title shall be adjusted in the same manner as the salary of an employee in the classified service of the state would be adjusted under the provisions of section one hundred thirty-two of the civil service law.

5. If the position of any incumbent armory employee appointed pursuant to section one hundred eighty-seven of this chapter, is allocated to a salary grade for a position comparable to one in the classified service of the state as set forth in section one hundred thirty of the civil service law, such incumbent shall be paid the minimum salary of the new grade and shall be eligible to receive the increments for such grade based on the number of his years of service in the position as it existed on March thirty-first, nineteen hundred sixty-one.