With regard to subsistence allowance there are different views. Since the employee gets subsistence allowance during suspension and therefore, he does not work on these days, no provident fund need to be deducted. But once he is exonerated of the charges and is reinstated he should be paid full salary deducting the subsistence pay already given. At that time, you can deduct the PF.
In the case of ESI also the same reasoning can be applied. But in Popular Automobles Vs Regional Director, ESIC, the Supreme Court has held that subsistence allowance will attract ESI.
Thanks again your valuable cooperation I am agree with Madhu & patel sir.
I would like to share details regarding this matter.
Subsistence allowance is paid for the survival of the suspendednot on duty and employer employee relationship suspended.
workers and during the suspension period the concerned workers are
Within the meaning of section 2(b) of basic wages- subsistencewages and not liable for deduction of Provident Fund,
allowances paid to the suspended employees does not constitute
As per CPFC circular dated 31/10/1957 subsistance all is not part of wages.
But subsistance all is part of wages under sec 2(VI) of payament of Wages act & Clause 22 of sec(2) under ESIC act hence ESIC deduction is permissible on Subsistance all.
Hope that it is enough to clear this matter
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