Dear Professionals, When an employee is paid subsistence allowance during the period of suspension pending enquiry, what are the deductions we need to proceed with - both ESI & PF or only ESI. Pls clarify.
From India, Madras
3From India, Madras
There are two view points. One is that Subsistence allowance is not wages/salaries hence PF is not to be deducted.
Supreme Court upheld that subsistence allowance forms part of wages hence ESI is deductable.
Please also view the following link, so that you will have 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
Supreme Court upheld that subsistence allowance forms part of wages hence ESI is deductable.
Please also view the following link, so that you will have 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 karnataka payment of subsistence allowance Act, 1988.pdf
SC directive on subsistence allowance to suspended staff.doc