If an employee is suspended and company is providing subsistance allowance to him @50% of basic and da. Whether we have to deduct epf and esi contribution from that.also whether employer contribution of epf and esi to be paid
From India, Hyderabad
1From India, Hyderabad
Subsistence allowance is part of wages for ESI purposes. Though this is an amount that an employee receives while he is not working (during suspension) this amount will attract ESI.
In the case of EPF, there is a different interpretation that subsistence allowance being a payment made to suspended employee for his survival and it is earned by him not on working the same should not be subjected to EPF contribution. Therefore, no PF deduction or contribution shall be made on subsistence allowance.
From India, Kannur
In the case of EPF, there is a different interpretation that subsistence allowance being a payment made to suspended employee for his survival and it is earned by him not on working the same should not be subjected to EPF contribution. Therefore, no PF deduction or contribution shall be made on subsistence allowance.
From India, Kannur
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Introduction Of One Employee One EPF Account Facility.pdf