After suspension, what is the percentage of subsistence payable and until what period? When is the subsistence allowance increased, and after what period? Will an employee be paid a full salary during suspension?
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After suspension, the percentage of subsistence payable and the duration for which it is provided typically depend on the company's policy and the relevant employment laws. In most cases, employees placed on suspension may receive a percentage of their regular salary, often referred to as a subsistence allowance. This allowance is usually a fraction of their full salary and may vary depending on the circumstances of the suspension.
Regarding when the subsistence allowance may be increased, this again is subject to company policy. The increase in the subsistence allowance, if any, could be tied to specific conditions or time frames outlined by the organization. It is essential for employees to refer to their employment contracts or company policies to understand the details of such allowances and any potential increases that may come into effect during a suspension period.
As for whether an employee will receive a full salary during suspension, this also varies and is contingent on the company's policies and the nature of the suspension. In many cases, employees are not paid their full salary during suspension but instead receive the subsistence allowance or a reduced amount as determined by the employer. It is crucial for both employers and employees to be aware of the terms surrounding suspensions, including payment arrangements, to ensure clarity and compliance with regulations.
From India, Coimbatore
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After suspension, the percentage of subsistence payable and the duration for which it is provided typically depend on the company's policy and the relevant employment laws. In most cases, employees placed on suspension may receive a percentage of their regular salary, often referred to as a subsistence allowance. This allowance is usually a fraction of their full salary and may vary depending on the circumstances of the suspension.
Regarding when the subsistence allowance may be increased, this again is subject to company policy. The increase in the subsistence allowance, if any, could be tied to specific conditions or time frames outlined by the organization. It is essential for employees to refer to their employment contracts or company policies to understand the details of such allowances and any potential increases that may come into effect during a suspension period.
As for whether an employee will receive a full salary during suspension, this also varies and is contingent on the company's policies and the nature of the suspension. In many cases, employees are not paid their full salary during suspension but instead receive the subsistence allowance or a reduced amount as determined by the employer. It is crucial for both employers and employees to be aware of the terms surrounding suspensions, including payment arrangements, to ensure clarity and compliance with regulations.
From India, Coimbatore
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The rate and duration of payment of Subsistence Allowance have to be regulated as per the Standing Orders applicable to the industry concerned. It appears the Unit has no Certified Standing Order, so in its absence, the State Rules are applicable, which would include Model Standing Order/Standard Standing Order as the case may be, has to be followed.
From India, Mumbai
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From India, Mumbai
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Dear KSN,
If your industrial unit is situated in the State of Tamil Nadu, then you have to follow the provisions of the Tamil Nadu Payment of Subsistence Allowance Act, 1981. The Act applies to all establishments other than a Public Sector Undertaking of the Central Government, office of the central or state government departments, railways, mine or oilfield, or any major port.
The rate of subsistence allowance prescribed under Section 3 of the Act is as follows:
a) The first 90 days - 50% of the monthly wages drawn immediately before suspension
b) Next 90 days - 75% of the monthly wages drawn immediately before suspension
c) Beyond 180 days - 100% of the monthly wages drawn immediately before suspension
The allowance can be reduced to 50% if the delay in the disposal of the inquiry is caused by the employee. It can also be denied if the employee is found to be gainfully employed in any other establishment during the period of suspension.
From India, Salem
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If your industrial unit is situated in the State of Tamil Nadu, then you have to follow the provisions of the Tamil Nadu Payment of Subsistence Allowance Act, 1981. The Act applies to all establishments other than a Public Sector Undertaking of the Central Government, office of the central or state government departments, railways, mine or oilfield, or any major port.
The rate of subsistence allowance prescribed under Section 3 of the Act is as follows:
a) The first 90 days - 50% of the monthly wages drawn immediately before suspension
b) Next 90 days - 75% of the monthly wages drawn immediately before suspension
c) Beyond 180 days - 100% of the monthly wages drawn immediately before suspension
The allowance can be reduced to 50% if the delay in the disposal of the inquiry is caused by the employee. It can also be denied if the employee is found to be gainfully employed in any other establishment during the period of suspension.
From India, Salem
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Hi,
If your establishment has a Standing Order or Service Rules, then the subsistence allowance is payable as per the terms of the same. In the absence of the SO/SR, you have to pay the full salary drawn by the employee at the time of suspension. The employee is eligible to receive the subsistence allowance until the date of his dismissal. As mentioned by Sri Umakanthan Sir, if your establishment is situated in the State of Tamil Nadu, you have to follow the State Act.
Regards,
P. S. Lakshmanan
S. G. Management Services
Kolkata
From India, Kolkata
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If your establishment has a Standing Order or Service Rules, then the subsistence allowance is payable as per the terms of the same. In the absence of the SO/SR, you have to pay the full salary drawn by the employee at the time of suspension. The employee is eligible to receive the subsistence allowance until the date of his dismissal. As mentioned by Sri Umakanthan Sir, if your establishment is situated in the State of Tamil Nadu, you have to follow the State Act.
Regards,
P. S. Lakshmanan
S. G. Management Services
Kolkata
From India, Kolkata
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