Dear Professionals,
When an employee is paid a subsistence allowance during the period of suspension pending an enquiry, what are the deductions we need to proceed with - both ESI & PF or only ESI? Please clarify.
From India, Madras
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3When an employee is paid a subsistence allowance during the period of suspension pending an enquiry, what are the deductions we need to proceed with - both ESI & PF or only ESI? Please clarify.
From India, Madras
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There are two viewpoints. One is that Subsistence allowance is not wages/salaries; hence, PF is not to be deducted.
The Supreme Court upheld that subsistence allowance forms part of wages; hence, ESI is deductible.
Please also view the following link for a better understanding: Citehr.com/477402-can-we-deduct-esi-pf-pt-when.html#:~:text=The%20Supreme%20Court%20has%20he ld,made%20on%20the%20subsistence%20allowance.
From India, Aizawl
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The Supreme Court upheld that subsistence allowance forms part of wages; hence, ESI is deductible.
Please also view the following link for a better understanding: Citehr.com/477402-can-we-deduct-esi-pf-pt-when.html#:~:text=The%20Supreme%20Court%20has%20he ld,made%20on%20the%20subsistence%20allowance.
From India, Aizawl
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