what is subsistance allowance, is it payable to an employee gainst whom suspension pending enquiry is running?
From India, Haora
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Dear Palash,

According to Section 10A of the Industrial Employment (Standing Orders) Act, 1946, regarding Subsistence Allowance:

Where the workman is suspended pending investigation by the employer into complaints or charges of misconduct against him, the workman shall be paid subsistence allowance equal to 50% of wages for the first 90 days of suspension and 75% of wages for the remaining period until the completion of disciplinary proceedings.

Thank you.

From India, Agra
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Fully agree with you. There can be state legislations on Payment of Subsistence Allowance. For example, in Tamil Nadu, there is the Tamil Nadu Payment of Subsistence Allowance Act 1981, and in Kerala, the Payment of Subsistence Allowance Act 1973. Both Acts prescribe the payment of subsistence allowance at the rate of 100% after 180 days of suspension pending inquiry.

K C S Kutty, Chennai

According to Section 10A of the Industrial Employment (Standing Orders) Act, 1946:

Subsistence Allowance: Where the workman is suspended pending investigation by the employer into complaints or charges of misconduct against him, the workman shall be paid subsistence equal to 50% of wages for the first 90 days of suspension and 75% of wages for the remaining period until the completion of disciplinary proceedings.

From India, Madras
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Dear If the allowance is not paid and Management proceeds with the Enquiry it is vitiated. With Regards E-mail : vsrlaw@gmail.com
From India, Bangalore
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Dear Palash, The Subsistence allowance to be paid to the employee will vary from Industry to Industry and Organization to Organization. Saritha

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Vaibhav, Pf treatment will depend on the Basic that he earns. It will be paid commensurate to the Basic paid during the suspension period.

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PF deduction is not mandatory during the period of suspension. However, if the employee desires to continue the deduction, it must be intimated to the employer in writing. Otherwise, any loans provided would continue to be deducted, and other taxes will also be deducted.

Thank you.

From India, Chandigarh
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Pls let me know that deductions will apply or not. becoz i heard that it should be with out deductions like esi,epf,pt
From India, Bangalore
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Dear All,

The subsistence allowance shall be paid at 50% for the first 90 days, and thereafter at 75% of the total gross salary. Corresponding to the percentage of the gross salary, the basic salary would be adjusted, and consequently, the Provident Fund (PF) shall be calculated.

This allowance is provided during periods where any inquiry or disciplinary actions are pending.

Though there are specific rules and regulations for different states, most states adhere to the same set of rules.

Regards,
Naveen Jain

From India, New Delhi
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