(a) When a person outside State service is appointed under this Part, the salaries of incumbent State employees serving in the same title in the same geographical area or location and having qualifications determined by the Director of Classification and Compensation to be equivalent to those of the person appointed shall be increased by such amount as may be necessary to equal the rate of compensation of the person appointed, effective on the date of such appointment.

(b) In connection with his consideration of a request for an appointment under this Part, the Director of Classification and Compensation shall determine which incumbent State employees in the same title in the same geographical area or location are eligible for an increase in salary.

(c) Such determination of the Director of Classification and Compensation shall be subject to the approval of the Director of the Budget.