(1) The employees of the municipalities in the State of Himachal Pradesh and working on regular basis on the commencement of this Act, as may be notified by the Government, shall stand integrated in the service according to the procedure as may be laid down by the Government.
(2) There shall be no reduction in the basic pay of the member of the service which he was drawing immediately before the commencement of this Act, however, any special pay which such member of the service was receiving for any additional duties shall not be protected.
(3) Without prejudice to the provisions of sub-section (2), the pay of a member of the service shall be adjusted and fixed in the scale of pay of the post included in the Scheduled-I 1 [Schedule-III] in accordance with the provisions of the Fundamental Rules, as applicable to the State Government employees.